Allegiance Coal (ASX:AHQ) and Japan Oil, Gas and Metals National...

Allegiance Coal (ASX:AHQ) and Japan Oil, Gas and Metals National Corporation (JOGMEC) have completed drilling of three partially cored holes at their Kilmain project in Queensland.

All three recovered coal from within the Rangal Coal Measures with cores sent for laboratory testing.

Initial results from analyses of coal cores from the first drill hole have been received from the laboratory.

These results when finalised will be combined with the results from analyses from the other two drill holes for full coal quality assessment.

JOGMEC, a Japanese government independent administrative institution that seeks to secure stable resource supply for Japan, will provide up to $3 million of exploration expenditure to Allegiance over a 3 year period for the project in three stages.   

It will earn up to 40% economic interest in the project and has the right to assign that interest to a Japanese nominee company in the future.

The Kilmain Project (EPC 1298 and EPC 1917) is a 56 square kilometre area within the Bowen Basin with coal seams within the Rangal Coal Measures.

Activities on the Kilmain Project commenced in mid September, 2014 with seismic survey and ground magnetometer surveys.

Drilling on selected sites followed the seismic and magnetometer surveys.