Two licences covering the undeveloped Jurassic coal measures of the Lock Coalfield have been taken up to allow initially for conducting research into the current technological and economic prospects for utilisation of the coal. Numerous samples...
Two licences covering the undeveloped Jurassic coal measures of the Lock Coalfield have been taken up to allow initially for conducting research into the current technological and economic prospects for utilisation of the coal. Numerous samples of the coal have been provided to overseas technical assessment agencies for testing. Continuing testwork on coal conversion has been hampered by a slowdown in service work provision due to overseas laboratories laying off staff because of the downturn in world oil price. The licensee made several overseas trips to investigate coal conversion processes in use in other countries. During the second year of the project, potential uses of Lock coal were further investigated. These included direct combustion for electric power generation, the extraction of coal gas, and the manufacture of a range of petrochemicals from liquefied coal. Alinta Energy made an offer to the licensee for it to take over the Northern Power Station in Port Augusta for a modest fee if it also would provide guarantees totalling A$60 million to cover rehabilitation of the site, rather than having to close down and begin demolishing this facility from the beginning of May 2016 as planned, but the offer had to be declined. During the third year of the project, Energy Exploration engaged Dr Richard Haren to assess the extensive data available for the Lock Coal Project and to produce a JORC compliant Resource Statement. Ore Resources Evaluation Services (O.R.E.S) and a supported geologist were then engaged to update the Lock drill hole data base. Work also continued on the technical assessment of processes for converting Lock coal into oil and gas. In addition, discussions are proceeding well with European financiers in regard to finance for the Lock coal to oil project. The resource estimate for the Lock Coal Project total Jurassic Coal resource of 164.5 M tonnes (90 Mt Indicated, 74.5 Mt Inferred). The resource estimate is categorized as Indicated and Inferred; this reflects the current medium level of geological knowledge regarding the Lock Coal deposit. There is limited geological knowledge of the continuity of coal seams within certain regions of the project area due to drill-hole spacing. The Tertiary Coal seam has an Inferred resource estimate of 25 Mt. During year 4 of the project, consulting geologist completed data reviews and derived a current JORC source of approximately 200 million tonnes of coal and minor lignite. No exploration activity was undertaken.
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