Queensland based Bowen Coking Coal kicked off a new seismic and drilling program at its Hillalong Coking Coal Project, which is located in the northern Bowen Basin in close proximity to the Hail Creek mine.
Bowen said the Phase 2a exploration program at Hillalong involves three drill holes in the northern area to extend the resource in the Rangal Coal Measures and eight drill holes in the southern area to explore new resources and to test the existence of the Moranbah Coal Measures along the eastern margin of the project.
A 37km seismic survey is also part of the program, which follows an agreement by farm?in partner, Sumitomo Corporation, to commit a further $2.5m to earn an additional 5% of the project.
The Japanese Conglomerate earned 10% of the project last year after spending $2.5m on Phase 1 and has the option to earn up to 20% in the project by spending another $2.5m on Phase 2b1.
Bowen Managing Director Gerhard Redelinghuys said the company will now seek to increase the existing 43 million tonne (Mt) JORC resource at its Hillalong project.
“We are looking to build on the good results from the earlier program which indicated that we have identified a significant deposit of high quality open cut coking coal proximate to existing infrastructure,” he concluded.