For those who believe GRK may have something up their sleeve for CKK in the future, then this announcement is very positive. CKK would be the obvious choice to drill those deep drilling sites identified.
Announcement on the 28th of March 2011:
The joint venture between Green Rock Energy and BHP Billiton Worsley Alumina Pty Ltd and operated by Green Rock Energy is pleased to provide the following update of field activities at its three Collie Basin/Worsley Geothermal Exploration Permits. The Permit are located about 120 kms south of Perth in Western Australia and total around 879 square kms in area. The field activities have primarily been aimed at measuring the geothermal heat source potential within the Permits as follows:
- A geophysical survey to measure the gravity response along 278 line kms was completed with the objective of defining depth and thickness of potential geothermal heat sources in the form of thermally anomalous granites. This survey was designed to follow-up radiogenic anomalies previously mapped by the joint venture over the Permit areas by airborne surveys.
- Temperature logging of 27 existing drill holes and water bores within the Permits between 13 metres and 291 metres depth (average depth 70 metres) was also completed in the same month. This survey yielded an average geothermal gradient of 33?C/km which is considered to be encouraging.
- A geochemical soil sampling survey comprising 80 sites covering 460 square kms together with analysis of soil gas was completed to determine the concentration of naturally occuring heat producing elements as another means of delineating regions in the Permits with higher than normal heat content. Results showed concentrations of heat producing elements in the soil at levels of two to four times the magnitude of the average levels reported in earlier studies by other parties for the same elements in the Yilgarn Crust of Western Australia.
Follow up of the geothermal soil survey is currently underway via shallow drilling to granite bedrock at an average depth of around 25m. Together with the results of the gravity survey and further soil gas sampling, this information will allow geothermal heat source targets to be located and evaluated with a view to selecting sites for deep follow-up drilling.
The joint venture also commissioned an independent study by Sinclair Knight Merz of the potential markets for geothermal energy in the Collie/Worsley region. This study should be completed during April and will assist the joint venturers to select deep drilling sites close to potential energy offtakers.
CKK Price at posting:
20.0¢ Sentiment: Hold Disclosure: Held