TIARO COAL LIMITED - ASX: TCM

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Description

Tiaro projects have targeted exploration for commercially viable coal deposits with the potential to produce metallurgical (coking, PCI) coals from the Tiaro Coal Measures. Tiaro has successfully completed coal exploration programmes including: detailed airborne magnetic and radiometric surveys; seismic surveys to define the targets for drilling; drill testing of the targets to define deposits of high value (metallurgical) coal; determination of coal quality; and a regional gravity survey.

The 2010 drilling program has commenced, with the objective of defining an Inferred Resource on EPC 956 and EPC 957 (Tiaro West Tenements) focussed on the T9 and Munna Creek target areas. 5,040 metres of RC drilling are planned; additional coal seams are being intersected.

Tiaro, through its wholly owned subsidiary Tiaro Energy Corporation Pty Limited (TEC), is a participant of the Tiaro Coal Joint Venture (TCJV), together with Core Coal (Qld) Pty Limited (Core Coal) and Jandale Pty Limited (Jandale). Through a separate joint venture, Dynasty Metals Australia Ltd (Dynasty) has earned 15% interest in EPC 956 and EPC 957 (Tiaro West Tenements). Tiaro has the option to increase its interest to 65% in the Tiaro West Tenements.

Tiaro has completed considerable exploration work involving geophysical logging (4,383 metres), and seismic surveys (29.1 kilometres) together with 10,647 metres of scout drilling since the inception of joint venture activities in 2005. As a result of this exploration activity several working sections of high quality metallurgical coal have been intercepted in an area of approximately 20 square km. Tiaro is now targeting zones within these areas to define a JORC compliant resource.

Tiaro has welcomed China Qinfa Group (Qinfa) as a strategic partner and key shareholder to the Company’s register. The Qinfa Group, established in 1996, is a leading coal operator in China whose business includes purchase and sales, filtering, blending, storage, transportation and shipping of coal.

Tiaro Coal and the China Qinfa Group have formed an equal joint venture trading company called Australian Minerals Trading Pty Ltd (AMT) to develop coal and other bulk mineral trading opportunities.

The objective of the Tiaro Coal - Qinfa relationship is to:

* Support the development of Tiaro Coal interests to create a JORC compliant of high quality metallurgical coal resource.
* Permit Qinfa to participate through a coal off take agreement of future mining production.
* Through AMT commence coal trading operations to develop profitable bi-lateral coal trade.
* Develop new coal resource opportunities with third party coal mining operations.

Against the background of these developments, Tiaro’s forward strategy revolves around delivery of the following imperatives:

1. Seeking to deliver a joint coal resource in EPC 956 and EPC 957;
2. Advancing geological interpretative work in other exploration tenements covering 1,113 square kilometres to identify highly prospective exploration targets;
3. Expanding coal trading opportunities through Australian Minerals in order to generate internal sources of funds to support future exploration work; and
4. To identify and seek long term coal off take acquisitions through farm in or direct investment approach.

Mine For

coal

Location of operation(s)

Queensland

Address

Level 2, 131 Macquarie Street
SYDNEY, NSW, AUSTRALIA

Phone

(02) 9251 7177

Email

Website

http://www.tiarocoal.com.au

Last Updated

21/01/2011