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Coalworks commences drilling a programme at Vickery South

Sydney-based company Coalworks (ASX: CWK) has kicked off drilling at Vickery South, located 22 Kilometres north of Gunnedah.

The project adjoins the Vickery Coal project just purchased by Whitehaven where an open cut mine was operated from 1991 to 1996.

A total of 12, including 8 open (150mm diameter) and 4 cored (100mm diameter) holes, are planned.

The first hole VS 001 has already intersected coal on the first day of drilling. The holes are being spaced between 750m to 1000m to provide data to combine with historical drill hole data. All holes are being geophysically logged.

Coalworks Managing Director and Chief Executive Andrew Firek said the company planned to expedite drilling with the objective of providing us with a better understanding of coal seam geometry.

"All our preparation work has confirmed our confidence in the 50Mt to 70Mt target for coking and thermal coal which we will pursue vigorously," Mr Firek said.

Coalworks has a portfolio of projects in Australia, including Oaklands, Vickery South, Hodgson Vale and Ashford.

Disclosure: The author holds no positions in the company