First Annual Report for EL 29239 Hale River Project for the year 4 January 2013 to 3 January 2014

Abstract

During the reporting period, the work programme was restricted to desktop studies that included gathering, historical data relating to the Pedirka Basin, review and interpretation of reports from geological consultants and public companies, and preliminary economic studies. The key data sources were geological reports commissioned by Ebony Coal focused on the northern block of Hale River Project tenements, NTDME Seismic Interpretation to the Top of Purni Formation (largely based on 1960s seismic surveys), open file reports from Central Petroleum, Amerada Petroleum and Tri Star Energy. A through assessment of the available data leads to the conclusion that there is potentially a large volume of coal that might be suitable for open pit mining in the northeast corner of EL 29237. However, the depth contours covering EL 29239 indicate that coal within this licence might be too deep to mine economically. Planning of, and preparatory activities associated with an initial drilling programme have started. Scout drilling is required for proof of concept and validation of assumptions concerning depth to Top of Purni Formation, net coal, coal quality and overburden ratios. This information is needed for more detailed financial modelling for an open pit mine.