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Eastern identifies 26m tonne coal resource near Westport
18 April 2007 - Queensland-based coal mining company Eastern Corporation Ltd says drilling has identified an initial resource of over 25 million tonnes of coking and thermal coal in its Whareatea West permit near Westport on the west coast of the South Island.
Announcing the results Mike O'Brien, the chief executive officer of Eastern, says that the resource is contained within the Mangatini Seam in EP 40 591 at a depth of approximately 70 to 85 metres below surface and is being targeted for potential underground mining.
The drilling identified a measured coal resource of 18 million tones plus an indicated resource of 7.7 million tonnes giving a total coal resource of 25.7 million tonnes.
Mr O'Brien says that results from initial coal quality testing indicate a range of coals from coking coal to a high ash thermal coal. Further exploration and coal quality testing is required however to gain a better understanding of what product tonnes can be mined from the resource which has been identified to date.
Currently only 40% of the 820 hectare Whareatea West exploration permit has been explored and there is potential to increase the initial coal resource.
Additional exploration is planned by Eastern and will be carried out in stages. 2D seismic and ground penetrating radar surveys will be used to plan additional drilling programmes. Further drilling will be subject to approval from the Department of Conservation.
In addition to the identified resource, a near surface four-metre coal seam was intersected in one of Eastern's drill holes. Further work is required to determine the quality and extent of this coal seam.
The Whareatea West resource is 5 kilometres south east of Eastern's Cascade coal mine, one of the company's two coal operations in New Zealand. Eastern is pursuing a strategy of growing New Zealand coal production as the domestic coal market expands to meet an increasing energy requirement.
The Eastern Corporation board also report the death of one of the company's founding directors, Gordon Smith, who was Executive Chairman from December 2003 until recently stepping down from this position due to ill health.
Mr Campbell Smith has been appointed to the board of Eastern as executive director. Mr Smith holds the position of general manager – New Zealand.
Source: Eastern.
The drilling identified a measured coal resource of 18 million tones plus an indicated resource of 7.7 million tonnes giving a total coal resource of 25.7 million tonnes.
Mr O'Brien says that results from initial coal quality testing indicate a range of coals from coking coal to a high ash thermal coal. Further exploration and coal quality testing is required however to gain a better understanding of what product tonnes can be mined from the resource which has been identified to date.
Currently only 40% of the 820 hectare Whareatea West exploration permit has been explored and there is potential to increase the initial coal resource.
Additional exploration is planned by Eastern and will be carried out in stages. 2D seismic and ground penetrating radar surveys will be used to plan additional drilling programmes. Further drilling will be subject to approval from the Department of Conservation.
In addition to the identified resource, a near surface four-metre coal seam was intersected in one of Eastern's drill holes. Further work is required to determine the quality and extent of this coal seam.
The Whareatea West resource is 5 kilometres south east of Eastern's Cascade coal mine, one of the company's two coal operations in New Zealand. Eastern is pursuing a strategy of growing New Zealand coal production as the domestic coal market expands to meet an increasing energy requirement.
The Eastern Corporation board also report the death of one of the company's founding directors, Gordon Smith, who was Executive Chairman from December 2003 until recently stepping down from this position due to ill health.
Mr Campbell Smith has been appointed to the board of Eastern as executive director. Mr Smith holds the position of general manager – New Zealand.
Source: Eastern.
