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East Energy Resources Starts Blackall Coal Project Study

East Energy Resources (ASX: EER) has started a Desk Top Study of its Blackall coal project in the Eromanga Basin, Queensland, as the first step towards an engineering evaluation of the open cut mineable resource.

Palaris Group has been appointed to carry out the study, which will focus on the review of geological data and coal quality; preparation of conceptual mine plan layout and production schedule; productivity analysis; and options for coal processing.

The study will also prepare a financial model including 'Pit Top ROM' operating costs on a ROM tonnage basis, FOR operating costs on a product tonnage basis and FOB operating costs on a product tonnage basis.

Blackall has a Resource of 1.74 billion tonnes of thermal coal at Blackall (EPC 1149), which is located south west of major deposits owned by Hancock Coal and Waratah Coal in the Galille Basin.

East Energy noted the Queensland Government has approved the GVK/Hancock rail project that links GVK's Alpha Coal project in the Galilee Basin to Abbot Point port.

Importantly, GVK is permitting third party access to the railway line, construction of which is expected to provide a major stimulus for projects in the Galilee and Eromanga basins.

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