Fox Resources (ASX: FXR) is well placed to start its first drilling program at the Bundaberg Coal Project in Queensland with the final stages of the tender process resulting in better than expected contract prices.
Fox expects the drilling program to start soon pending successful completion of its Share Purchase Plan, which seeks to raise up to $3 million.
The seven holes will be drilled to varying depths along five nominal west-to-east lines to determine if the seams intersected by ICX are continuous with and correlate to those intersected in historical 1970's - 1980's drilling.
These holes will be geophysically logged and are expected to enable the company to generate a structural model that will allow Resource calculation.
Fox added the spacing and depths planned will allow JORC Reporting of Inferred Status should suitable coal seams be intersected.
Indicating the size potential that may be present, ICX and its partner have delivered a an Inferred JORC Resource of 28.5 million tonnes, and a further down-dip exploration target of 20 to 40 million tonnes within the neighbouring EPC 2196 tenement.
Historical coal exploration drilling in the 1980s indicated coal intersections on the Bundaberg tenement at shallow depths of <150 metres.
Multiple coal seams ranging from 0.2 metres to 2 metres thick may be present over a stratigraphic interval of 5 to 20 metres.
The available coal quality test work indicates that prime coking coal is potentially present.
The Bundaberg tenement is wholly owned by Fox Resources and all its Queensland coal tenements including Bundaberg, Styx, Emerald, Springsure, Alpha, and Eromanga will shortly be transferred into the company's wholly owned subsidiary Waterford Coal.
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