EL 3623 is located 220 km south-east of Adelaide, and lies to the west of the township of Naracoorte. The tenement is also located ~35 km to the south-east of the much larger Kingston lignite deposit contained within the subject licencee's related...
EL 3623 is located 220 km south-east of Adelaide, and lies to the west of the township of Naracoorte. The tenement is also located ~35 km to the south-east of the much larger Kingston lignite deposit contained within the subject licencee's related EL 3385, which was taken out during 2005. The Lochaber coal deposit contained within EL 3623 was previously discovered by Western Mining Corporation (WMC) in early 1979 as part of a regional coal exploration programme. The last recorded activity there was drilling carried out in January 1980. The Lochaber deposit is regarded as an inferior deposit in terms of quality, geological continuity and size, when compared to the Kingston deposit. Historical records available to the current licensee suggest that WMC limited its deposit appraisal activities to drilling. No final compilation report or individual surrender reports could be located in the public records that discussed the Lochaber deposit as an entity. While no field activities or major office-based studies directly applicable to EL 3623 have been carried out during the past three years, the granting by PIRSA of permission to conduct joint reporting with the licensee's EL 3385 activities has enabled its respective expenditure commitments to be met. A total of $603,536 spent to the end of February 2009 has been apportioned to the EL, relating to costs for tenement administration, the conduct of coal gasification / combustion trials, and commissioning of groundwater modelling studies. Recently it was decided to focus on determining whether a discrete resource existed at Lochaber that had the potential for eventual economic exploitation. Therefore a review of the available data was carried out, but only at a basic level in view of time constraints. A petrophysical log database was prepared for the WMC drillholes, a DEM model was sourced from PIRSA to assist in modelling of the deposit, drillhole sections were compiled, and basic geological interpretations and a simple manual polygonal resource estimate were completed. Although a resource is present, it is small (~60 Mt) with respect to the quality of the coal, seam width and overburden depth. Economic exploitation in the foreseeable future is unlikely. The resource is closed off by the drilling, limiting any upside. Further complications arise due to the presence of the Fairview Conservation Park in the central part of the tenement. In view of these factors, it was recommended that EL 3623 be surrendered, and that an in train application for its renewal after 28th June 2009 not be pursued.
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