Linc Energy Limited (ASX:LNC) Increases Galilee Coal Tonnage To 7.8 Billion Tonnes
Brisbane, Nov 18, 2009 AEST (ABN Newswire) - Linc Energy Limited (ASX:LNC)(PINK:LNCGY) is pleased to announce an initial resource statement in accordance with the JORC Code of 7.8 billion tonnes of coal at its Galilee tenement in Queensland.
The JORC report is based on 47 exploration core holes (representing part of a total of 63 holes drilled to date) from a 126 hole program, which has been completed within the Linc Energy's Galilee Mineral area MDLa 372. The initial results have been modeled in MINCOM by Xenith Consulting, creating a 3D resource model, providing a resource assessment in accordance with the JORC code.
The exploration program in MDLa 372 commenced in early June and over 15,000 metres of chipped or cored drilling has been completed to date. The MDLa area represents in excess of 261 square kilometres and as this large resource area is further defined, the results continue to exceed previous expectations including those released by the Company on 24th August indicating a target of 5.0 to 5.5 billion tonnes.
Drilling confirms that the Permian age coal seams in the MDLa area attain cumulative coal thicknesses in excess of 35 metres with an implied strip ratios averaging around 3:1 (this equates to approx 3 cubic meters of overburden dirt removed for every one tonne of recovered coal) in the area targeted for open cut mine development, suggesting a very cost effective open cut/strip mine would operate in that area.
In the period since the completion of resource modelling by Xenith Consulting, further drilling has occurred in the sub-crop area adjacent to the target open cut mine area. This has confirmed that the Tertiary cover (the overburden) is thinning to the east, even more than had been indicated by previous modelling, this means an improved strip ratio in these areas may-be expected once further drilling has been completed. Overburden thicknesses of less than 30 metres have been encountered in some areas and Linc Energy is confident that a very attractive open cut coal mineralisation target of in excess of a billion tonnes will be measured, in the near future.
Further coal quality and washability studies have confirmed export thermal coal yields in the range between 75 to 90%. Analysis of individual 2m thick plies in areas of the resource show unwashed MDLa 372 ash levels between only 8 and 12% raising the possibility of initial mine development and production without coalwashing.
In announcing these results, Linc Energy's Chief Executive Officer, Mr Peter Bond commented that "we are very excited by the results of the mid-phase of our drilling program. This deposit continues to amaze us as we explore it further. The increasing size of the deposit and the increased potential of the open cut area are all fantastic outcomes. The possibility that you can plan and operate an open-cut mine at 30 million tonnes per annum for 30 years, at such a potentially low mine cost base and with such a degree of confidence of production rates is a rare thing in the coal industry."
Mr Bond further stated that "as I have previously announced, we will continue to drill and better define this resource at a pace. These results reflect what an increasingly valuable asset Linc Energy has within this Galilee coal area. I am increasingly convinced that this acreage represents the best area of the Galilee basin, and can host a very large, long life, low cost mining operation producing high quality thermal coal for export for a generation ahead."
For the complete Linc Energy ASX Announcement and detailed JORC estimate summary outlining the quantity and quality of the coal resource, please click the link below:
http://www.abnnewswire.net/media/en/docs/61768-ASX-LNC-215949.pdf
Contact
Information for Media:
Mr Peter Bond
Chief Executive Officer
Tel: +61-7-3229-0800
Email: pab@lincenergy.com.au
ASX Contact:
Mr Craig Ricato
Company Secretary
Tel: +61-7-3229-0800
Email: craig.ricato@lincenergy.com.au
Information for investors:
Ms Janelle van de Velde
Manager, Investor Relations & Corporate Communications
Tel: +61-7-3229-0800
Email: janelle.vandevelde@lincenergy.com.au
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