Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

International Coal intersects significant coal seams at South Blackall, Qld

International Coal (ASX: ICX) has intersected a significant coal seam structure from drilling at its South Blackall Project (EPC 2197) in the highly prospective region of south western Queensland.

As interesting, the actual extent of coal identified within the first three holes will not be known until geophysical logging has been completed.

The confirmation of a significant coal seam structure has encouraged International Coal to up the ante adding a further 17 – 20 holes to be drilled over the next 4-5 weeks with diamond core drilling planned for several holes.

The drill program is aimed at ultimately identifying a maiden JORC resource at the project.  The early results validate  original predictive modelling.

Multiple coal seams were encountered in all three holes drilled. The first hole intersected coal seams at 70 and 145 metres and the second and third holes drilled had intersections occurring at a depth of 45 metres, with further seams encountered at 70 metres and 145 metres.

Geophysical logging has commenced using standard wire logging techniques and the company expects these results to be available over the next few weeks.

The program has been expanded from an originally proposed nine holes to up to 20 holes covering an area of up 400 square kilometres.

International Coal is currently conducting a review with independent consultants to further enhance the accuracy of future drilling.

SGS Laboratories, Gladstone have been engaged to assess samples obtained from the drill program.

Seam thicknesses were, on average, between 1 and 3 metres. The extent of coal within the first three holes will not be known until geophysical logging has been completed.

A total of 675 metres of rotary mud drilling was completed in the first three holes.

The initial drill programme at South Blackall will consist of a range of drilling over areas identified as being prospective.

There are no historical coal quality data available from EPC 2197, aeromagnetic and gravity surveys were run in the vicinity of EPC2197 by the Department of Minerals and Environmental Research in 2007.

The results of these surveys have contributed to the proposed drilling programme and the assessment of the company’s Exploration Target.

Analysis is due to commence shortly of the drill and logging results in order to calculate the volume of coal in ground based on the data and results of this stage 1 and 2 drill program.

South Blackall comprises an area of 768.82 square kilometres and consists of 250 sub-blocks.

The site is strategically located 80 kms north-east of Quilpie in south-west Queensland and is part of the Eromanga and Galilee Sedimentary Basins.

This permit is located close to road and rail that can provide direct access to the Port of Brisbane.


Analysis


International Coal has been a "star" performer since listing on the ASX in July at $0.20, the share price rising over 80%.   On today's results and drilling and resource development momentum building at South Blackall - which does not even take into account potential at ICX's hard coking coal prospect in Bundaberg QLD - it would be a brave man to bet against further gains.