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EAST ENERGY RESOURCES LIMITED

ASX: EER

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Description

East Energy Resources is an ASX listed coal exploration and development company primarily focused in the Eromanga Basin in Queensland. The company has over 1.2Bn tonnes of Inferred JORC Thermal Coal resource proven on their Blackall Tenement located to the South West of Hancock Coal’s and Waratah Coal’s significant deposits in the Galilee Basin. The company’s focus is to expand and develop the existing resource.

Queensland Project Location

East Energy Resources holds two Exploration Permits for Coal (EPC’s) in the Bowen and Eromanga Basins in Central Queensland. The Capella tenement was the subject of a reconnaissance drilling program in 2009 to identify potential coal targets for more detailed drilling. Recent exploration at the Blackall Coal Project has delineated an Inferred Resource of 1.2 billion tonnes of thermal quality coal defined by an extensive drilling program in 2008/2009.

Capella Coal Project

The Capella Project lies astride the township of Capella. It covers the lower part of the Bowen Basin sediments and has potential for Class I and Class ll coal deposits. The Capella project area extends from 15km west to 25km east of the township of Capella and is covers approximately 20km from north to south. The area is secured by EPC 1066 of 113 blocks or about 400 square kilometres. The tenement was granted on 26 February 2007.Rail Infrastructure exists at Capella and extends through the western part of the tenement.

An exploration drilling program was completed at Capella, EPC 1066, in the Bowen Basin during the middle of 2009. A total of 16 exploration holes were drilled at approximately 4km centres, to depths of between 100m and 150m. No coal seams were intersected. Whilst this result was disappointing, the program had been designed to test for the presence of any isolated sub-basin that could potentially contain significant coal seams near the surface. Results from the drilling have shown that this does not occur. Accordingly , the East Energy board have decided that no further field work will be undertaken at present. The option of exploring for deeper deposits for underground coal or underground gasification is still an option being considered by the board.

Blackall Coal Project

The Blackall Project is secured by tenement EPC 1149, covering 300 sub-blocks over an area of approximately 900 km2 in the Eromanga Basin in Queensland. The tenement was granted to East Energy on 22 April 2008 for an initial period of five years. The area is 65 kilometres south of Blackall township, 177 kilometres north west of Charleville, and 81 kilometres west of Tambo. Blackall is 1,050 kilometres from Brisbane via the Warrego and Landsborough Highways and is 734 kilometres by rail from Gladstone via Rockhampton, Emerald and Jericho. The spur line from Jericho extends to Yaraka 160 kilometres west of Blackall. The topography consists of gently sloping smooth plains, which are partly dissected by tributaries of the Hope and Ravensbourne Creeks. These flow intermittently and only during the wet season in to the Barcoo River System to the north. Elevations vary from 329 metres in the south to 278 metres in the north.

Coal Resources

In early 2009 East Energy Resource Ltd commissioned SRK Consulting to undertake an independent estimate of the EPC 1149 Coal Resources in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code), 2004. The Coal Resources have been estimated from a new and validated geological model based on data collected from exploration drilling conducted within EPC 1149 during 2008. A total of 224 boreholes were processed during the Resource estimate, 185 of which were used in the geological modelling. A total of 36 core holes with coal quality data have been included in the geological model. An Inferred Raw Coal Resource of 1.2 Billion tonnes (Bt) has been estimated for the Blackall Coal Deposit. Of this, a total Inferred Raw Coal Resource of 776 Mt has been estimated to occur within a 10:1 cumulative vertical overburden ratio to seam group 4. The more complete resources statement is available on the East Energy Resources Website under the Media Releases.

Proposed Exporation 2009-10

Exploration drilling completed between June and November 2008 provided a good basis for modeling of the geology and establishing the continuity of coal seams in the southern half of the tenement. SRK Consulting have reported an Inferred Raw Coal Resource of 1,222 Million tonnes (Mt) for the Blackall Coal Deposit and the Company is confident that additional tonnes will be delineated in the northern portion of this tenement, which to date has not been subject to meaningful drilling activity.

SRK Consulting recently completed a geostatistical analysis of the drilling data obtained during the 2008 exploration. They provided East Energy with advice on the optimum drill spacing for future work and this was incorporated into the planning for the current phase of drilling. Drilling commenced on 15 October 2009 with the aim of defining an Indicated Resource over the southern half of the lease, in the shallower more economically attractive part of the resource. Coal seam depths and thicknesses in the latest drilling have been found to be generally as predicted from the existing geological model that was produced by SRK using data from the 2008 drilling campaign.

Samples from coal seam intersections have been dispatched to ACIRL in Emerald and early coal quality results are in line with those from last year’s work. Initial exploration drilling to investigate the northern half of the tenement will commence in Quarter 1, 2010. It is planned to extract a bulk coal sample during Quarter 1 2010 to allow more thorough metallurgical test work to be carried out. A suitable site for the bulk sample is currently being investigated.

Mine For

coal

Location of operation(s)

Queensland

Australian Basins

Eromanga, Galilee

Address

Level 7, 16 St Georges Terrace
PERTH, WA, AUSTRALIA

Phone

61 8 9225 5833

Email

Website


Last Updated

8/4/2011

 

The data on Australian Shares.com is intended as a guide only and is provided purely as an indication of what information can be found through official announcements. Data on this website should not be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. The publisher (Intaanetto Pty Ltd) will not be held liable for any loss arising from the use of this website.