COALWORKS Limited (ASX: CWK) advises that seven new holes in its drilling program have intersected the Lanes Shaft Seam, pointing to a potential increase in the previously inferred JORC resource estimate of 280 million tonnes. Coalworks has completed a further seven holes at the Oaklands project in the initial stages of a 49 hole planned drilling program that commenced in July 2008. This program adds to the 10 holes already drilled by Coalworks since December 2007. All seven new holes have intersected the Lanes Shaft Seam. The recent drilling was conducted in both the Northern and Southern areas of the exploration tenement, with four holes in the north (ODH’s 011, 012, 013 and 014) and three holes in the south (ODH’s 015, 016 and 017). Coalworks has previously announced an inferred resource of 280mt, which is located in the Southern area only. In the Northern area, depth to the coal roof ranges from 75m to 224m, while thickness ranges from 8m to 18m. These results show a good mineable thickness of coal in the Lanes Shaft seam throughout this area. These intersections are all outside the previously announced 280 mt resource and a resource will be estimated for this area as soon as analytical results are available, expected to be by the end of the September quarter. In the Southern area, depth to the coal roof ranges from 66m to 114m, with a thickness of approximately 15m in each hole, more than expected from previous drilling. In particular, ODH15 is significantly thicker than expected from the closest of last year’s holes, ODH1 which intersected 9m of coal (see attached map). Similar results from ongoing drilling would permit an increase in the coal resource for this area. In six of the seven holes, the Lanes Shaft Seam was cored and sampled, with analytical results for coal quality pending. Coalworks CEO Andrew Firek said that the drilling results confirmed management’s belief that the Oaklands project has tremendous potential. “We have been quietly confident that the drilling program would reveal the hidden value in the project and these results are delivering just what we expected,” he said. (more) COALWORKS Limited COALWORKS Limited ACN 114 702 831 Level 5, 44 Miller Street, North Sydney NSW 2060 AUSTRALIA Ph: +61 2 9922 1344 Fax: +61 2 9922 4288 Email: [email protected] www.coalworks.com.au Drilling is continuing at the Oaklands Project with another drill rig planned to commence drilling on site on Monday 25th August, 2008. To be operated by TCL International, this rig will concentrate on drilling in the Northern area, where geological structure appears to be more variable than in the south. The rig currently at Oaklands, operated by Watson Drilling, will continue drilling in the Southern area, where the coal is generally much shallower. Cautionary Note: This release may contain forward-looking statements that are based upon management’s expectations and beliefs in regards to future events. These statements are subjected to risk and uncertainties that might be out of control of Coalworks Limited and may cause actual results to differ from the release. Coalworks Limited takes no responsibility to make changes to these statements to reflect change of events or circumstances after the release. The following statements apply in respect of the information in this report that relates to Exploration Results, Mineral Resources and Ore reserves: The information is based on, and accurately reflects information compiled by Mr Tom Bradbury, who is a member of The Australasian Institute of Mining and Metallurgy. Mr Bradbury is a geologist employed by Geos Mining, a consultancy company providing specialist exploration services to the coal, uranium, gold, base metals and industrial minerals sectors. He has the relevant experience in relation to the coal deposit being reported on to qualify as a Competent Person as defined in the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves. Mr Bradbury has consented in writing to the inclusion in this report of the matters based on the information in the form and context in which it appears. For further information, please contact: Tony Teng Director/Secretary Tel: +61 2 9922 1344 Fax: +61 2 9922 4288 Email: [email protected] www.coalworks.com.au Coalworks has a portfolio of projects in Australia including Oaklands (JORC inferred 280mt thermal coal), Hodgson Vale (exploration target thermal coal) and Ashford (limestone deposit with high value lime products as target).
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