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Solid Energy awarded further West Southland coal exploration permit

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16 March 2007 - Solid Energy has been awarded a coal exploration permit in a greenfields area of Western Southland near the town of Tuatapere.

EP 40797 covers an area or 4166 hectares on the eastern side of the Waiau Basin towards the Longwoods Range.

Solid Energy says “The project is very much a greenfield project. There is no record of historic mining activity, nor discoveries of significant coal outcrops in the prospect area.”

Geologically the Cretaceous/Cenozoic sediments in the Waiau Basin are known to contain coal measures equivalent in age and depositional environment to the sub-bituminous Morley and Beaumont coal measures that have been mined in the Ohai area for 150 years.

The northern part of the permit is approximately 20 km southwest of Ohai.

Solid Energy says the coal measure sediments lie near the base of the sequence in the middle of the basin, at depths well beyond the capability of current mining methods.

However, recent detailed mapping and analysis of historic seismic data suggests that the coal measures may have been brought closer to the surface by faulting near the basin margin around the Longwood Range, the company says.

The prospect was identified during a regional assessment under Prospecting Permit 39230 formerly held by Solid Energy.

The next phase of exploration activity will include further detailed mapping and targeted drilling to answer specific questions about depositional environment, structure, and stratigraphy, the company says.

The permit work programme calls for a minimum of 2 drill holes within three years.

Solid Energy last year was granted a coal exploration permit EP 40758 in another greenfields coal area of Western Southland, about 30 km due north of the new permit. This earlier permit is 20 km northwest of Ohai and covers a 4130 hectare area on the southwest slopes of the Takitimu Mountains.

Source: Solid Energy.
Last updated 30 May 2007

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