NSL Consolidated (ASX: NSL) has been formally granted the first of its four thermal coal exploration tenements, EPC 2198, in the Eromanga Basin in southwest Queensland, adjacent to East Energy Resources' (ASX: EER) 1.2 billion thermal coal project.
The company is working towards completing the notification period and final granting process for EPCs 2337 and 2338 in the September quarter of 2012.
NSL has established a presence in Queensland, in the quest for coal at EPCs 2336, 2337, 2338 and 2198, covering 2,585 square kilometres.
Attractive exploration targets of 6.6 to 18.7 billion tonnes in thermal coal already exist at the projects.
The permits are considered highly prospective for thermal coal and are adjacent to projects held by East Energy Resources, which hosts Inferred Resources of 1.2 billion tonnes of thermal coal, and
NSL is targeting the same coal bearing formations as adjacent EPC 2197, owned by International Coal, which has an exploration target of 8.8 to 8.9 billion tonnes.
All of NSL's tenements cover the Winton and Mackunda formations, with the Winton formation being the main coal target with an estimated cumulative thickness of 2.1 to 8.5 metres across the tenements.
The Mackunda formation has a much smaller footprint, with a cumulative thickness of 0.5 to 1 metre.
NSL is aiming to build a coal resource that can supply thermal coal to fast growth Asian energy markets.
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