Clean Global Energy (ASX:CGV) Confirms 38Mt JORC Inferred Resources At Maryvale Coal Tenement With Potential To Increase
Sydney, Oct 7, 2010 AEST (ABN Newswire) - Clean Global Energy (ASX:CGV) is pleased to announce that the company's Maryvale coal tenement, EPC 1506, has been given a JORC Inferred Resource of 38* million tonnes (Mt), by independent geologists, GeoConsult Pty Ltd.
The Maryvale project area, which has a potential exploration target of 150-183*Mt, is located about 18km north-east of Warwick.
(*This target is conceptual in nature and there has been insufficient drilling to define a mineral resource greater than 38MT and it is uncertain if further exploration will result in the determination of a mineral resource.)
The Phase 1 Drilling Program primary objective was to test for the presence of suitable coal seam packages for Underground Coal Gasification (UCG) within the Lower Walloon Coal Measures in a depth range of 100m to 350m. This program comprised eight drill holes, including two holes which were HQ cored (industry standard pipe size). The conclusion of drilling has identified two primary coal seam targets, both of which are potentially suitable for UCG.
Global UCG expert and Clean Global Energy's Technical Director, Dr. Michael Green, supplied the technical parameters used in the resource estimation. The parameters used were: minimum seam thickness 1.5m, minimum depth of 100m, maximum in seam stone parting of 0.5m and maximum ash limit of 60%. Dr Green said global UCG trials had been conducted below 100m and shown that the UCG process would work at this depth, and operate in coal at 1.5m thick, and at an ash value of up to 60%.
The 38Mt JORC Inferred Resource is from the Bulwer Coal Seam which is approximately 3.2m thick. The Bulwer Seam was correlated in detail using a five ply model (BU 31-35), showing the seam is continuous and correlatable across 8.2km2.
A secondary target, namely the Condamine Coal Seam, has also been identified and correlated across much of EPC 1506. This seam has been intersected in several drill holes at depths approximately 100m deeper than the Bulwer Coal Seam. The Condamine Coal Seam intersections have been typically greater than 5m thick, however, at this stage it has been excluded from the resource and target coal estimates.
The JORC Inferred Resource estimate of 38Mt is considered to be conservative, and solely based on the continuous and correlatable Bulwer Coal Seam. Significantly, Clean Global Energy has been advised that drilling an extra three core holes could result in the target tonnage being expanded to 183Mt.
"I am highly encouraged by these independently-verified drilling results. Our company will now begin planning for a Phase 2 Drilling Program, to expand the 38Mt JORC Inferred Resource," Clean Global Energy Chairman, John Harkins said.
"This result vindicates our publicly stated position that UCG has a bright future in Australia, and I look forward to state governments giving the green light to UCG commercialisation, including Queensland," Mr Harkins said. "There has been successful underground coal gasification of coal resources worldwide at depths of 50 metres or more. In Australia, UCG trials in Queensland have gone deeper, to 120 metres."
"And as I said at a recent energy conference in Sydney, organised by the Australian Financial Review, our UCG technology has a lower carbon footprint, so we can contribute in a much cleaner way to energy production in Australia."
For the complete Clean Global Energy announcement including tables, please refer to the following link:
Chairman and Managing Director
Clean Global Energy Limited
Clean Global Energy Limited