Adelaide, May 16, 2006 AEST (ABN Newswire) - Metallica Minerals Limited (ASX: MLM) is pleased to announce that it has recorded very encouraging black coal intercepts from its first drilling programme on the Taabinga coal deposit as part of its wholly owned Kingaroy Coal project in the Tarong Coal Basin 150km NW of Brisbane.
The Taabinga coal resource is situated south of Kingaroy in the South Burnet Region. Taabinga currently has a Measured and Indicated coal Resource of 181.9 million tonnes. Three of the four core holes were drilled outside this current Resource.
A drilling programme comprising seven (7) drill holes (of which 3 were pilot holes) for a total of 727m were completed at Taabinga by Metallica Minerals in April / May 2006. The Four core holes intersecting a combined total of 62.5m of black coal seams.
The three main seams present at Taabinga are; (from top to bottom) the Kunioon, Swain and Goodger seams which were all intersected with core, with the best shallow coal intercept recording 10m of Kunioon coal seam (Hole T5003C) from 40m depth, see attached drill log.
Drilling was a combination of 100mm (4") core and percussion drilling. Percussion drilling was utilised to establish pilot holes and pre-collars as well to maximise efficiencies in drilling the interburden horizons between cored coal seams. A total of 98.75m was cored.
Core samples were collected from all four holes for coal quality analysis and results are anticipated in late May.
All holes were geophysically logged using calliper, density, gamma and sonic log measurements to provide accuracy for planning of coring and to provide additional information for seam correlation.
Further drilling will be focused on areas within the Taabinga deposit which may be suitable for open pit mining with low to moderate strip ratios as well as possible extraction of adjacent remaining coal with high wall mining methods. Metallica will also investigate the potential of coal gasification as an additional development option, including Underground Coal Gasification on the deep (>130m) thick (>5m) seams, such as the Goodger seam.
Kingaroy Coal Project Taabinga Deposit Significant Coal Seam Intercepts (Drill Programme 23 April - 3 May 2006)Drilled Core Hole Easting Northing Kunioon Seam Swain Seam Goodger Seam----------------------------------------------------------------T5001C 382887 7055583 7.61 m 2.82 m 7.48 mT5002C 382281 7055662 No seam 0.15 m 8.66 mT5003C 382664 7055601 10.49 m 3.34 m 12.22mT5005C 383517 7055860 No Seam 1.14 m 8.61m----------------------------------------------------------------
Metallica believes it has a very strategic coal deposit at Taabinga for supplying competitive supplementary coal to the Tarong Power Station, as well as considerable coal exploration upside in the Tarong Basin over which Metallica holds permits covering approximately 200 sq km. Furthermore Metallica will also investigate the potential for coal gasification. Metallica has previously initiated discussions with the Tarong Power Station with a view to providing future supplementary coal supplies. These initial discussions to date have not substantively progressed and at this stage, Metallica is considering all commercial options in relation to the future commercialisation of this strategic coal resource.
Kingaroy Coal Project - Taabinga Deposit - Drill Ledger
Hole No Easting Northing RL Percussion(m) Core Depth-------------------------------------------------------T5001C 382887 7055583 456 100.63 20.37 121 #Intersected Kunioon, Swain & GoodgerT5002P 382277 7055661 462 108 0 108 #Pilot Hole T5002C 382281 7055662 465 82.47 25.53 108 #Intersected Swain & GoodgerT5003P 382668 7055604 443 132 0 132 #Pilot HoleT5003C 382664 7055601 451 77.32 42.68 120 #Intersected Kunioon, Swain & GoodgerT5004P 383417 7055453 451 41 0 41 #Abandoned pilot hole due to failure to casing in pre-collarT5005C 383517 7055860 450 127.83 10.17 97 #Intersected Swain & Goodger----------------------------------------------------------Total 628.25 98.75 727----------------------------------------------------------Note all holes surveys are preliminarily surveyed in using GPS
The resource information contained in this report has previously been reported in Metallica's 2004 Prospectus and was estimated by Runge Limited using data from 208 holes and using a coal seam thickness cut-off of 0.3m, and conforms to JORC guidelines for the reporting of resources.
Background - Kingaroy Coal Project
MLM through its wholly owned subsidiary SE QLD Energy Pty Ltd holds the Kingaroy coal project, EPC 882 (200 km2) which includes the Taabinga coal resource and other drilled coal prospects within the Tarong Basin. The 181.9 Mt Measured and Indicated Taabinga thermal coal Resource is strategically located 25 km from the Tarong Power Station, the largest power station in Queensland.
The Tarong Power Station currently relies on purchasing over 7 Mt of coal from the nearby Meandu coal mine which is expected to expire in 2011 and it is currently seeking to secure long-term coal supplies from nearby resources in the Tarong Basin as well as other coal resources regionally in the Surat Basin, including its own Glenn Wilga coal resource near Chinchilla approximately 150 km SW of the Tarong Power Station.
Source:
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
Contact
Mr Andrew Gillies
Managing Director
Metallica Minerals Ltd
TEL: +61 7 3891 9611
MOB: +61 416 137 556
| ||
|
