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Mining Projects Group Aims To Unlock Value From Granted Queensland Coal Exploration Permit

Mining Projects Group (ASX : MPJ) has taken another major step into the highly lucrative Queensland coal sector with the granting of the strategically located coal exploration permit 1992.

The permit will now be known as the Etona Coal Project, and can be considered highly prospective due to historical petroleum wells/water bores drilled suggesting the potential for large net volumes of thermal coal, as several coal-bearing formations have been identified.

Another major plus for Etona is that it has already received Independent Geological sign-off for an Exploration Target range of 50 million tonnes to 155 million tonnes.

Mining Projects Group will move exploration at the project ahead at speed, and has already designed initial exploration programs targeting an increased Conceptual Exploration Target range.

Etona - strategically positioned

The big plus for Etona is the location, which sits adjacent to Coalbank's (ASX:CBQ) Tambo Coal Project, and the defining factor for the Mining Projects Group is the sheer size of the permit - which covers 300 sub-blocks for around 950 square kilometres.

Other advantages is there is no impact from strategic cropping or native title; along with the possibility of shallow coals within the Orallo formation mined at the historical Maranoa Colliery; and the exploration success of Coalbankproviding the possibility of down-dip extensions within the Etona Project area.

Adding further value for the future if Etona can be developed, is the proximity to existing infrastructure with the project located 78 kilometres north-east of Charleville in central-west Queensland.

A railway line runs from Charleville to around 70 kilometres south to Roma, and then 550 kilometres east to the Barney Point Coal Terminal in Gladstone.

Whilst the existing railway line is not coal wagon-rated, the relative proximity to road and rail infrastructure may potentially provide access to the proposed tenure area, and could ultimately facilitate the delivery of coal to the local port.

Indendent report provides potential exploration upside

An independent report identifies that Etona is located 12 kilometres east of Augathella and that this project would represent a new, previously unexplored, coal province within the Eromanga Basin.

The report cites inferences from petroleum wells and water bores previously drilled in the area to suggest the potential for large net volumes of thermal coal within the application area as several coal-bearing formations were identified which has led to the definition of an exploration target.

The main exploration targets are the Cretaceous Orallo Formation, the Coreena Member of the Wallumbilla Formation, the Late Jurassic Westbourne Formation, and the Middle Jurassic Birkhead Formation.

Geology breakdown

The geology of the project area includes sedimentary rocks from the Cretaceous to Jurassic Eromanga Basin, and at much deeper depths, the Mid-Triassic to Late Carboniferous Bowen Basin, which are both known to contain thermal coals suitable for use in domestic or international coal markets.

Coal from the Orallo Formation has previously been mined south of Injune at the Maranoa Colliery. Detailed analysis of the water bore data has identified coal seams 0.3 metres to 3.5 metres at three depth bands within the tenure (at 25 metres, 130 metres and 550 metres).

The thicker coals at 550 metres are most likely to represent down-dip extensions to shallower target coal seams (Walloon Coal Measure equivalents) in the adjacent Coalbank's Tambo project tenures.

Acquisition agreement

Mining Projects Group entered into to an agreement to acquire EPC 1992, subject to its granting, from New Coal Energy Pty Ltd. 2.5 ordinary shares have been issued at $0.02 to Subiaco Capital Pty Ltd who introduced the opportunity to Mining Projects Group.

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