By doing an initial (less detailed) exploration over a larger area and in the process achieving this huge increase in inferred JORC resource at Rockwood, EOC have no doubt extracted alot of knowledge from the exploration which went into the latest JORC upgrade.
Obviously they've been able to get a bigger picture on the geological structures on the tenement (over a wider area than the initial drilling area) and I'd also imagine this more wide-spread exploration has opened the door for Endocoal to think of some very brief hypothetical scenarios for mining at Rockwood (please note the very large emphasis on very brief and very hypothetical!!!!).
It could also have it's perks in the company's application for port allocation near Mackay (in which Rockwood and Nebo are the nominated coal sources.
Rockwood is a long way off any feasibility studies, so at the time being it really isn't necessary for them to target a largely indicated/measured resource (e.g. MDS which is almost entirely measured).
When they are more focused on getting some feasibility studies/mining plans generated they can shift their attention to getting that indicated/measured resource. For the time being though I'm more than happy that they've given shareholders a sniff of how good Rockwood could be (once the resource is upgraded to indicated/measured that is).
Getting up a inferred JORC resource would no doubt also boost the company's confidence in drilling other Eastern (less explored) areas of the Bowen Basin.... Essex, Nebo etc.
EOC Price at posting:
38.0¢ Sentiment: LT Buy Disclosure: Held
