Guildford Coal's (GUF) maiden JORC statement contains some interesting information relevant to Blackwood Corp.
At the abandoned White Mountain Coal Mine, which incidently is not part of their JORC resource, is close-to-the surface thermal coal. The GUF release states: "Drilling on White Mountain Project located on the north eastern edge of the Galilee Basin (on EPC1260) has also successfully intersected the Betts Creek Coal seams at approximately 80m depth. Further drilling in this area will aim to define a JORC resource potentially amenable to open cut mining methods".
I checked the Blackwood Prospectus. It states: "EPC 1496 and 1485 are positioned immediately west and along strike of the abandoned White Mountain Coal Mine. There is a strong likelihood of the prospective Betts Creek Beds and Aramac coal measures occurring within these EPCs as they saddle the basin margin and the projected sub-crop of the Permian coal measures."
If you look at the map in the GUF release you can see clearly where GUF's EPC1260 ends and therefore where BWD's (not shown) EPC are located.
BWD has reprioritised North Hughenden, and I think this is on the basis of what GUF is discovering there. BWD will start drilling next week here. The coal here is amenable to open pit mining methods and is closest to infrastructure. There is out-cropping of coal in this area but it is not known whether this occurs on BWD's EPCs. All very interesting and I am looking forward to these results.
By the way, I am a top 20 shareholder, and would be interested in hearing from other shareholders or knowledgeable people about Blackwood Corp. or indeed general thoughts about Queensland thermal coal explorers. Like most small cap miners it doesn't get much attention from brokers, so sites like this can be useful.
My thinking at the moment is that stocks don't usually move much around JORC resource announcements (eg. GUF today). They tend to run up well before, in anticipation. I think BWD will do this. I believe a run up to $1 is on the cards. The Chairman keeps buying on-market, which is also a good sign.
BWD Price at posting:
25.0¢ Sentiment: Buy Disclosure: Held
