The Lock Jurassic sub-bituminous coal deposit was discovered by the South Australian Department of Mines and Energy in 1977. The Lock Coal deposit lies within the eastern portion of the Polda Basin on the Eyre Peninsula. The deposit covers an area of 50 km2, is 10 km west of the town of Lock, and 140 km north of Port Lincoln. The Polda Basin is a subsurface feature entirely covered by Quaternary sediments, it is a +120 km by 10 to 20 km east-west elongate feature which is located across Central Eyre Peninsula and opens to the west into the Great Australian Bight. The basin is developed in crystalline Pre-Cambrian basement rocks and contains a sequence of Permian conglomerate and claystone, Jurassic sand, claystone and coal, Tertiary sandstone, clay and lignite, and minor Quaternary deposits. The Jurassic sediments comprise the Polda Formation and contain the Lock coal resource. The coal deposit conforms to the form of the basin, is long (~15 km), narrow, east-west feature in the north of the basin. The Energy Division of the South Australian Department for Mines and Energy commissioned Coleman & Associates to develop a conceptual mine plan for the deposit to study its ability to supply a 750 MW power station and a second study to supply a 500 MW station. At the time while the mine could be economically viable, it was deemed unfavourable for development due to remoteness, infrastructure, and the small size/low quality to mining cost ratio. During the first licence year for EL 1835 the report “Lock Coal Deposit – An assessment of the geology, reserves, and conceptual mine plan” was completed to review the potential of the Lock deposit in view of, at the time, rapid developments in a variety of fields that has led to the development of plants which offer significantly improved thermal efficiencies and atmospheric emissions. See the included report. During the second licence year, the following report was completed “The Lock Coal Resource Polda Basin, South Australia. Review of Geological Aspects and Status of Information”. It concluded that after reviewing the available data that a resource exited of 52 MTonnes db based on a strip ratio ~5-6 M3/Tonne db with an ash cut-off of 40-45% db (db = dry based measurement). A possible doubling to 100 MTonnes db with an increased strip ratio of 7-8 M3/Tonne db would still fall short in making it a viable operation. It was found that the quality of the existing data sets was insufficient by the standards of the day and further work would be required to advance the project to bankable stage. The deposit is dominated by its bounding east-west faults and appear to have influenced both the deposition of the Jurassic deposit and the overlying Tertiary lignite sequences. It is reported that the Jurassic sequence was exposed prior to superposition of the Tertiary deposit and is parked by the occurrence of gravels and a change from clay/slit dominant to sand dominant, and that the increasing ash content of the deposit is related to the introduction of silica, initially as very fine silts. A study was completed in October 1995 entitled “Technical Study: Iron Ore Resource Potential of Eyre Peninsula SA.” This was in response to the MESA initiative to assess the potential of establishing a revitalised steel industry that utilised local fuel and ore, based around the Ausmelt Technology to steel making. The process could potentially utilise the lower kilojoule coal of the Lock deposit. The Crisp Group commissioned the report in the hopes of identifying an iron ore source conveniently located near the coal deposit. While the potential exists for additional iron ore, much is currently held under tenure or lies within conservation zones. During the fourth licence year, investigations were undertaken into the use of coal as a fuel source for smelting iron ore. Assessment was made of the physical characteristics for use in the Ausmelt process, and advice indicates that it would be suitable. A geological assessment was carried out by Queensland Geological Services indicated that a more work was needed particularly in the analytical area, but up to 600 million tonnes is believed to exist. Discussions were held into the use of the Lock coal to fuel the Northern Power Station. Investigations into the partial pyrolysis of the coal were undertaken by S. W. Hayes to produce oil, however it was advised that it was not commercially viable due to the high ash content of the coal. In the reporting period from 02/09/99 – 02/09/00, on renewed EL 2546 held by Centrex Resources NL. Work completed included: - Investigation into the use of the coal as a fuel source for a power station continued (with the potential to supply power to Centrex’s steelworks). - Continued investigation into the potential of the different Lock coal types for liquefaction and gasification. - Scoping Study completed on the economics for the use of coal for power generation at the Port Augusta power station or new station at Whyalla. - Mapping was obtained for mine planning and facilities at Whyalla and Port Lincoln. In the reporting period to 02/09/01, Centrex reported the same ‘Work Completed’ as in the previous reporting period. The Coleman & Associates conceptual mine plan was reviewed for Centrex in the context of modern mining practices, and it was advised that the deposit could be mined more effectively and profitably than the original plan permitted under updated practices and technology. Mine planning continues to be limited due to the lack of information on the vertical and lateral variation in the coal across the deposit. In the reporting period to 02/09/02, Centrex undertook a 12-hole drill programme of which only 10 holes were drilled. Holes were drilled to provide further data on the underlying coal. Samples were analysed for a range of properties important in the use of coal in a power station. The results are to be used to correlate with previous data. Rotary mud drilling was utilised to drill 9 holes 705 m as part of an open hole drilling program. Initial drilling was problematic due to the failure of RAB methods to penetrate loose and unconsolidated sands and hole collapse. Holes were geophysically logged upon completion, however due technical issues logging often took place several days after the hole had been opened which often resulted in hole collapse and slouching walls. A single cored hole was completed for 76.3 m. The core was logged on site, then again by Phillips Gerrard Geological Services, coal intervals were split and sent for determination of coal parameter and metallurgical and combustion testing. In the reporting period to 02/09/03, Centrex carried out work to: - Establish the geological attributed of the coal across the whole deposit and to define the distribution, geotechnical, engineering, metallurgical and combustion attributes within prospective areas. - Generate sufficient high-quality data to develop conceptual mine plans that would allow for economic modelling. - And identify and consider all potential end users for the coal. Database development and data review was undertaken with all verifiable drill collar and analytical data currently available. Collar, stratigraphic and geological information was used to generate contour models of the deposit and to forward plan drilling programs for infill in areas where information is lacking. The drill core recovered in the previous reporting period was used to develop the sequence stratigraphy. The core was photographed logged in detail by Phillips Gerrerd Petroleum Services, with key stratigraphic markers identified. Available geophysical logs were used to extend the sequence stratigraphy across the area. This work allowed for the coal intersection to be split into four seam packages, with evidence of a fifth in the bottom of several holes suggesting that a majority of the holes to date were not drilled to a sufficient depth to fully test the deposit. It has also allowed for the development of more valid conceptual mine models and for volume estimations for the contained coal, inter- and over- burden. Coal analysis was undertaken from samples collected in the previous reporting period, with samples sent to HRL Technology Pty Ltd [see included reporting]. In the reporting period to 17/09/04 in the first reporting year of renewed EL 3130, Centrex retained JLC Exploration to seek a solution to data quality issues identified in earlier studies. It was found that only core assay quality data met an acceptable standard, and that open hole data either needed to be validated or excluded and new models developed. Four goals/procedures were established: 1. Increase the drill hole dataset and improve the quality of seam continuity, 2. Unify all the original geological data into digital format, 3. Find a way to resile the assay-geophysical conundrum to coal quality, and 4. Apply the results and generate a revised seam / geological model. An assessment plan and procedures where tested and seen to be a viable for the deposit and it was recommended that it should go forward to the completion of a seam/ply model and dataset suitable for resource estimation and mine modelling is complete. A final technical report for EL 3130, covering the period 18/09/04 – 17/09/08, reported on the geotechnical status and investigation of future options for the Lock Coal Deposit. During the reporting period most of the Lock Jurassic coal knowledge base has been loaded on to computer and used to derive a geometric coal seam model. Recent 2008 core drilling information provides QA to coal quantity and quality predictions based on the new model. The new drill core material has provided the opportunity to acquire in-depth knowledge about the coal sufficient to justify continuing investigations on geological and metallurgical fronts. A four-hole drilling program for 341 m, was drilled in 2008, open hole pre-collars totalled 210.4 m and 130.5 m of core with an 86% recovery rate, and an averaged return rate of 100% in coal seam intervals. The seam prediction and coal quality data were internally consistent and matched well with the previously compiled data set validating the adopted protocols and interpretive effort expended on the desktop study. High frequency sampling, undertaken at 20cm intervals, was a major contributor to this process. It was established that hence-forth that at least 30 m drill core was processed in this way for future drilling campaigns to maintain quality assurances that would meet future JORC QA compliance. The Jurassic coal is generally massive with fine lamination, it is interbedded with massive clay/mudstone that has occasional filamentary layers of coal up to a mm thick or thin layer with aligned filamentary carbonaceous material. The coal rapidly darkens to an ultra-dark brown black once at the surface from a medium- dark brown. Earlier work applied a “sub-bituminous” tag to the coal based on its apparent “black” colour and that all similar aged coals were also black coals. The author suggests that the Lock deposit is rather still a Lignite and that the maturation arrested in the transition to low grade black coal because the Polda Basin Jurassic sequence had probably never been subjected to the burial depths of similar aged coal measures in Australia. The suggested class is Lignite B. Mineralogical studies were undertaken, including QEMSCAN SEM technology and petrological examination. Overall conclusions included: - That the Jurassic coal at Lock has profoundly different attribute to those of typical brown and black coal. - Gamma density geophysical logging can be used as a proxy for ash prediction providing appropriate drilling and data management protocols are in place. - The raw coal when exposed in air loses free moisture quite rapidly at normal everyday temperatures. - Lock coal has a high median dAsh at about 40% with 30% of intercepts within 40 ±5 %dAsh, 45% within 40 ± 10 %dAsh and < 5 % at <25 %dAsh. - The very high ash component is dominated by kaolinite a hydrous-alumino-silicate that loses bound water at about 330ºC which occurs during determination of %dAsh and assay of FC and VM. - Geological evidence points to the Jurassic age coal at Lock being a very mature lignitic rock that has never been subject burial where pressure and temperature enabled transformation into low grade “black coal” and expulsion of mobilizable hydrocarbon. - Four major seems interpreted in the Jurassic coal measure sequence and, - Two closely spaced holes drilled in 2008, P153C and P155C demonstrate that the relatively high frequency features present at the 10 cm scale in geophysical logs are real, laterally continuous, and clearly not random electronic noise. This justifies close spaced 20 cm sampling for reliable dAsh ~ density log correlation and calibration coefficient determination. A combined annual report was submitted for the 2009 and 2010 reporting years for EL 4192. Drill core was collected from 8 holes across 6 sites across the Jurassic Coal Resource to continue validation of the revised seam model and obtain additional coal to progress metallurgical test work. During the current work period additional drilling was used to demonstrate: - The seam model was reliable deposit wide. - The coal quality was reasonably predictable. - The Jurassic Coal carbonaceous component was very uniform throughout the resource. - MFA oil yield is likely to be predictable based on the dry basis ash measurement. - A bulk sample made up of material selected from all seam intersections was representative and had coal quality parametrises close to prediction. Petrological work on selected samples from previous 2008 drill holes demonstrated maceral abundances consistent with the high volatile yields and textures that showed evidence of former mobile hydrocarbon phases. A bulk sample of 363 kg was generated and used to supply sample material for a diverse range of generic process testing that encompassed: - Ash separation and removal -trials. - Retorting technologies for direct hydrocarbon yields - trials. - Solvent technologies for extracting hydrocarbons - trials. - Direct utilisation as a petrochemical feed stock – conceptual. This work has already shown a hydrocarbon product is likely to yield a much higher commercial return than using the coal or derivative as a thermal fuel and has become the focus of Energy Exploration Limited’s investigations. A viable ash separation technology remains elusive and seems improbable. Seven holes with cored intervals and one open hole totalling 759 m were completed. Open hole pre-collars and tails totalled 438 m, and 210 m of core drilling had an overall recovery of 89.6%. Aggregated coal seam recovery was 99.0 % yielding 146 m (~1600 kg) of Jurassic coal sequence core. At each location drilled, the correlation between the model stratigraphy and the drill core data was demonstrated. This was seen as an excellent result, giving confidence in predicting future intercepts of coal seams. Core samples from the 2008 and 2009 programs were set aside for microscopic petrographic and maceral investigation. The objective of the investigation was to establish maceral sources of the high MFT oil yields of composite samples and to underpin the QEMSCAN data and visually examine primary physical nature of the ash. The investigatory work was undertaken by Bernd Michaelsen BSc (Hons), PhD [See included report]. QEMSCAN technology has demonstrated ash to be extremely fine material with a major portion fully interspersed with the carbonaceous component. Petrological work by microscope indirectly confirms this but the small sample set is restrictive. Petrological investigations have shown a maceral make up which explains the high hydrocarbon potential exhibited by the Fischer Assay results is due to liptinites. Metallurgical test work concluded that the Jurassic coal has the potential to yield a higher net benefit by being developed as a hydrocarbon resource rather than being used as a low-grade thermal fuel source. In the reporting period to 26th October 2011, recent evaluation work had been focused on the potential for commercially viable direct production pf hydrocarbons from the Lock Coal. During the reporting period, work comprised the finalisation of previous reporting, the analyses of previous bulk sampling, and the digitisation of additional down hole logging data. Concluding remarks from the bulk studies indicated that the inter-burden clay is identical is identical that that occurs within the Jurassic coal, and that minor inter-burden dilution during mining is unlikely to impact the processing of the coal or any end use products. In the reporting period to 26th October 2012, Energy Exploration invested in several confidential research programs on the different processes for converting coal to oil and progressing its aim to commercially exploit the coal deposit. Potential end-products include: - Coal briquettes for export coal - Coal and iron ore for export briquettes - Conversion to oil - Conversion to petrochemicals - Production of geopolymers and/or “bauxite”. The company investigated the potential for geophysical processes to delineate the coal, as well as undertaking a reconnaissance visit to the site to meet with landowners. In the reporting period to 26th October 2013, efforts were focused on trailing new technology that appears to “read” the profile of coal deposits underground [See included report]. In the reporting period to 26th October 2014, research has continued throughout this year on the recovery of oil, gas and petrochemicals from Lock Coal. A well respected Chinese petrochemical institute was engaged to provide advice on various coal plant processing option that may be suitable for producing a range of products that may have commercial application for the project.