The Callabonna Energy project is held by a 100% owned subsidiary company Callabonna Energy Pty Ltd. The Callabonna Energy project comprises Geothermal Exploration Licences 296, 304, 305, 306, 307 and 350 for a total area of 2,875km². The project is located in the same area as the Curnamona uranium project, in the northeastern Curnamona Craton, providing a unique opportunity for an interconnected exploration program. The Callabonna Energy project will target hot basement rocks over areas thought to be suitably insulated by sedimentary cover with the potential for developing an Engineered Geothermal System.
The project is located in a region with anomalously high crustal heat flow, one of the hottest areas of the South Australian Heat Flow Anomaly. The high-heat producing Mesoproterozoic rocks of the Mount Painter Inlier likely continue beneath cover to the east and underlie the Callabonna Energy Project.
Geothermal exploration aims to locate shallow, hot rocks with temperatures approaching 200ºC at depths of less than 5km, corresponding to geothermal gradients in the order of 40ºC/km, considerably higher than the average crust. Where the hot rocks are covered by insulating sediments with low thermal conductivity, the heat can be retained and exploited. In addition, a potentially economic geothermal system requires a permeable reservoir within that volume of rock, through which a fluid can be passed through, heated and extracted to produce electricity. Similar advanced projects include Petratherm’s Paralana project, nearby, and Geodynamic’s Cooper Basin project.
Callabonna’s aim is to complete proof of concept exploration over the GEL’s to locate suitable heat flow gradients by utilising the pre-collars drilled for uranium exploration. This will involve drilling a series of ~250m deep drill holes in which both heat flow and conductivity studies can be carried out, and also, conducting magneto telluric (and if needed follow up seismic reflection) studies to map the depth to basement and thickness of sedimentary units. The proposed program will address some important risk factors and should provide sufficient data to better assess the geothermal prospectivity of the Callabonna Energy Project, and to enable design and financing of a proof of concept well.
Geothermal Energy is becoming an attractive investment for future power generation. It is considered green renewable energy with a potential for base-load power generation. Although the technology is in its infancy it has the potential to compete with and replace fossil fuel burning power stations. Geothermal energy electricity markets are potentially nearby towns and mining projects, ultimately linking into the national electricity grid as transmission lines are further developed. Callabonna will take an interest, as appropriate, in the entire geothermal energy cycle from exploration and production to the storage and transmission of electricity.
MKY Price at posting:
1.9¢ Sentiment: Buy Disclosure: Held
