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Cougar Energy Ups Coal Exploration Target In Bowen Basin After Drilling

Cougar Energy (ASX:CXY) has successfully completed Phase 1 drilling at its Mackenzie PCI coal tenement in the Bowen Basin in Queensland, having intersected the Aries, Castor, Pollux and Pisces target seams.

The seams were intersected from a minimum depth of 283 metres in hole CED002 to a maximum depth of 451 metres in hole CED003.

As a result of the coal intersections from Phase 1 program, the Exploration Target for the project including all seams over the full 2,100 hectare area, has been increased to 150 million tonnes to 240 million tonnes of metallurgical and thermal quality coal.

Lab test work and geological modelling has already started with results likely in mid-July.

Rob Neill, Cougar's CEO and managing director said, "The initial results of the Phase 1 drilling program are very encouraging.

"At that stage, considering the regionally established transport infrastructure and logistical services, we would expect to have the basis to progress our Mineral Development Lease application and commence scoping study work for the project as an underground mine in Queensland's world renowned Bowen Basin".

Phase 1 drilling

The Phase 1 drilling started last month and all the holes intersected the targeted Rangal Coal Measures sequence including Aries, Castor, Pollux and Pisces seams.

Cougar had earlier planned a field work program of up to 6 holes, which was subsequently reduced to 3 after gaining access to historical drilling and geophysics following a data sharing arrangement with Bow Energy.

The 3 holes were focused on the southern section of the EPC, which covers about 60% of the total tenement area. A total of 2,197 metres was drilled.

Its earlier Exploration Target of 120 million tonnes to 170 million tonnes included just the Pollux seam, while the new one of between 150Mt and 240Mt includes all the seams and a cumulative thickness range of 7-11 metres of coal across the tenement.

Mackenzie project

Mackenzie (EPC 1445) covers a 21 square kilometre area about 25 kilometres northeast of Blackwater and has easy access to great infrastructure.

This includes a road used for haulage of coal from the Yarrabee mine that runs north to south through the area covered by EPC 1445. The haul road leads to a rail loop and loading facility some 26 kms away connecting into the Blackwater rail line which transports coal to the Port of Gladstone.

The coal resources within the region are contained within the Upper Permian Rangal Coal Measures which produce export quality PCI and Thermal grade coal.

The coal seams at Jellinbah and Yarrabee, which are separated by the the Yarrabee Fault, are the Aries, Castor and Pollux Seams.

A potential ROM 3.0 Mta underground longwall mine is being investigated by the company and is currently conducting an internal time and cost study to better understand the project economics.

Analysis

The successful completion of Phase 1 drilling has enabled Cougar Energy to expand its Exploration Target to between 150Mt to 240Mt and will help define a maiden JORC resource.

The catalysts ahead include: test results from laboratory work and geological modelling that are likely in mid-July and progressing of the mineral development licence application.

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