news must be coming it came but nobody read it Good ann but the...

news must be coming it came but nobody read it
Good ann but the sp went nowhere & it's coal Aust biggest export earner.



ASX / MEDIA Release November 22 2006
JAPANESE MAJOR IN MOU FOR EMERALD DEVELOPMENT
Key Points
􀂃 Sojitz Corporation to farm-in to EPC 927 by sole-funding a $5.3 million exploration and evaluation programme to earn a 30% Joint Venture interest
􀂃 Sojitz to pay Northern Energy Corporation an additional up-front cash payment of $0.5M with an option to acquire up to a further 19% for $6.65M cash on completion of the farm-in
􀂃 Sojitz to be entitled to marketing rights for coal mined from the EPC, providing the Joint Venture with substantial strength through its global trading presence
􀂃 The MOU provides further impetus to NEC’s transition from single project exploration to progressing its diverse exploration portfolio toward development
Major Japanese trading house Sojitz Corporation has signed a Memorandum of Understanding (MOU) with Northern Energy Corporation (NEC) to form a Joint Venture (JV) to advance the company’s Emerald project towards mine development.
Sojitz will earn a 30% Joint Venture interest in EPC927 by funding a three-stage, $5.3 million exploration and evaluation programme to take the exploration project through to completion of a bankable feasibility study for establishment of a mine on the tenement near Emerald in Queensland’s Bowen Basin.
NEC will also receive an up-front payment of $0.5 million from Sojitz on finalisation of the agreement. After completing the $5.3 million farm-in Sojitz will have an option to acquire a further 19% JV interest for $6.65 million in cash.
NEC’s Managing Director Keith Barker said Sojitz would also be entitled to marketing rights over all coal produced from the EPC while NEC would manage the exploration and evaluation programme.
“We are very pleased to have Sojtiz involved with this project as it offers extensive global coal marketing expertise together with the experience gained through participation in other coal mining operations in the Emerald region,” Mr Barker said.
“Sojitz is a substantial company with a diverse global commodity trading and direct investment portfolio.”
Mr Barker said the Emerald project contained a large tonnage of quality thermal coal offering scope for development of a significant mine complex over time.
“The introduction of such a strong co-venturer provides a solid platform to take the project forward through the resource definition stage to evaluation and commitment to mine,” he said.
In July this year NEC announced an Exploration Target at its Emerald project of 410-460 million tonnes to a depth of 300 meters following compilation and assessment of historical exploration data from within the tenement area.
Under the proposed Farm-in Agreement Sojitz will provide up to $5.3 million to fund a three stage exploration programme, planned to be completed within three years.
The programme objectives are to complete:
􀂃 resource confirmation, preliminary groundwater and other engineering studies to identify the most attractive location for an initial mine development;
􀂃 in fill drilling to upgrade the resource; seismic and other geophysical surveys for input to engineering parameters and mine design, coal quality determination and environmental management; and,
􀂃 detailed resource evaluation feeding into a bankable feasibility study covering all aspects of mining, coal quality and environmental assessment and infrastructure requirements.
Mr Barker said finalisation of the Joint Venture, Marketing and Farm-in agreements with Sojitz was expected before the end of the 2006 calendar year with exploration planned to start in the first quarter of 2007.
“The proposed farm in agreement provides the financial and marketing support to progress NEC’s Emerald project expeditiously which in turn provides NEC greater financial flexibility to explore and further define the remainder of its coal portfolio, and we look forward to a long relationship with Sojitz” Mr Barker said.
“NEC is also currently conducting two drilling programmes – at the Maryborough coking coal and the Elimatta low-sulphur thermal coal projects - with results expected from these programmes in early 2007.“
Mr Barker said NEC would also continue exploration of the substantial area which comprises the Ashford Regional Project for extensions to the hard coking coal resource at Ashford.
About Sojitz Corporation
Sojitz is a substantial Japan-based trading house with operations spread around the world across many commodities and business sectors. Its energy and resources arm is one of five divisions, each of which are involved in global trading and direct investment within their particular industry segment.
Sojitz has been involved in the international trade of coal for many years and is expected to account for around 10% of all coal imports to Japan in 2006.
The corporation already holds direct investments in the Emerald region through interests in the Minerva mine to the South West of Emerald and the Jellinbah East mine near Blackwater. Sojitz also owns an interest in the Coppabella (Q’ld) and Wallarah (NSW) coal mines.
Sojitz was formed through the integration of the Nichimen and Nissho Iwai Corporations in 2004 and now has a market capitalisation of approximately 270 billion Yen (A$3 billion). It has the depth of investment, trading acumen and financial capacity to support not only an initial development at Emerald, but further expansion to exploit the substantial tonnage potential identified by NEC.
Emerald Project
EPC 927 is located 6km to the west of Comet, in the Central Bowen Basin. It is located approximately mid-way between Emerald and Blackwater on the Capricorn Highway.
The tenement is bordered to the north by Ensham’s MDL217 and to the south by Togara North’s MDL316 and EPC550. The target coal in EPC927 is a strike continuum of the coal sequences defined in Ensham and Togara North.
The rail line from Emerald to Gladstone also passes through the EPC and this line is currently hauling coal to the Port of Gladstone.
The principal target seam is the Aries seam (Aries II) contained in the Late Permian Rangal Coal Measures. In EPC 927, the Rangal Coal measures dip to the west off the flank of the Comet Ridge towards the Denison Trough.
The majority of the area will be assessed as an underground project with potential for some open cut resources close to the subcrop to be assessed in the initial exploration stage.
The Aries II ranges from subcrop of 30 metres to 400-500 metres in the far west of the EPC, while seam dips are around 5 degrees. An Exploration Target of 410-460 million tones in situ coal has been identified from an assessment of available exploration data to a maximum cover of 300 metres.
Table 1 below details the breakdown of the Aries II target in EPC927. Indicative coal quality of the target seam is shown in Table 2. The quality data available indicate that the Aries II in EPC927 is a low raw ash high energy coal. Coal at depths >300m is not included in the target
Table 1. EPC927 Aries II estimated in situ coal target
Area
Depth of Cover (m)
Aries II 1.5-1.75m thick (Mt)
Aries II >1.75m thick (Mt)
Total
(Mt)
EPC927
0-100m
10-20
10-20
20-40
EPC927
100-200m
20-30
110-120
130-150
EPC927
200-300m
60-70
200-220
260-290
Total
0-300m
90-110
320-360
410-460
Table 2. EPC927 Aries II in situ coal quality*
Aries II Thickness Range (m)
Air Dried Moisture
RD
Raw Ash %
Raw SE mj/kg
Raw Volatile Matter%
Raw Total Sulphur %
F1.50
Mass Yield%
F1.50 Ash%
1.5-1.75m
6.8
1.29
11.0
27.5
28.30
0.44
93.2
8.4
>1.75m
6.9
1.31
12.0
26.95
26.95
0.37
91.2
8.4
For further information please contact
Keith Barker
Managing Director
07 3303 0695
0417 646 715
The information in this report that relates to Mineral Resources is based on information compiled by (Norman) Andrew McLaughlin, who is a Member of the Australasian Institute of Mining and Metallurgy. Andrew McLaughlin is a full-time employee of Northern Energy Corporation Limited. Andrew McLaughlin has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Andrew McLaughlin consents to the inclusion in the report of the matters based on his information in the form and context in which they appear.
Figure 1. EPC927 Aries II thickness isopachs and borehole plan