target of 20 million tonnes of coal

Black is new gold
June 18, 2008


PROSPECTORS are hoping to identify a major coal deposit which could prove that black is the new gold for the Gympie region.

And they say the deposit could make our region the centre of a new regional resource boom within five years.

Confirmation of substantial deposits would mean a new mining industry for the region and substantial employment on infrastructure upgrading, particularly to get product to export markets.

Tiaro Coal Joint Venture partners say they are "hoping to identify coal deposits containing a target of 20 million tonnes of export quality thermal or soft coking coal and/or pulverised coal injection coal," in a deposit which is about 250km from Gladstone Coal Terminal by rail, about 200km from Brisbane and 100km from Bundaberg.

However, partner Tiaro Coal Ltd says the exploration is at an early stage and "drilling is not extensive enough to support a resource estimate in accordance with (stock exchange) reporting requirements."

Tiaro Energy Corporation Limited executive Peter Meers says 150 exploration test holes have been drilled at various times and most holes have intersected coal.

"In several places good quality coal bands of varying thickness have been intersected," including coals with coking characteristics in some locations, he said.

The unincorporated joint venture now exploring the area consists of Mr Meers' company and resource development and mining services company Core Resources (Qld) Pty Limited and Jandale Pty Ltd, a subsidiary of major global mining house, the Anglo Pacific Group, which is listed on both the London and Australian Stock Exchanges.

The venturers stress that the project is only at an early stage and "any mining activities may be at least four to five years away."