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Eastern Starts Drilling at Whareatea West
3 April 2006 - Queensland-based Eastern Corporation begins coal exploration drilling at Wharatea West in Buller coalfield.
Queensland-based energy company Eastern Corporation Ltd reports that it has begun the next phase of its exploration drilling programme at the Whareatea West permit on the Buller coal field, 20 km north of the town of Westport in the South Island.
The Whareatea West Exploration Permit (EP 40591) covers an area of approximately 820 ha and initial indications are that the permit contains export quality hard coking coal, Eastern says.
The exploration permit is held by Rochfort Coal Mining Pty Ltd, a 100% owned subsidiary of Eastern.
A detailed geological and resource model for the Whareatea West permit is being worked up by Eastern, based on information obtained from former mining activities and earlier programmes in the area, and the exploration programme conducted by the company last year.
Eastern's chief executive officer, Paul Williams, says development of Whareatea West as an operating coal mine was a key component of Eastern's New Zealand coal strategy.
The company's half year report to 31 December 2005 says the aim of this current Whareatea West programme is to assist in proving up a resource in the order of 20 million tonnes.
Eastern last year bought the Cascade coal mine 5 km further north of Wharatea West. The company also plans to lift Cascade production from 40,000 tonnes a year to a target of about 100,000 tonnes a year.
