- Bowen Coking Coal has started exploring at the its coal project in the Bowen Basin
- Four days ago, the company signed a farm-in with Sumitomo – a multi-billion dollar Japanese company
- Sumitomo is funding exploration to earn a 10 per cent interest
- The company’s share price is up 5.17 per cent today, with shares trading at 6.1 cents
Bowen Coking Coal has commenced exploration at its Hillalong Coking Coal Project in the northern Bowen Basin, Queensland.
The project covers a 99 square kilometre area and comprises the EPC 1824 and EPC 2141 permits.
Just four days ago, the company announced signing a farm-in agreement with Sumitomo, a multi-billion dollar Japanese conglomerate.
“We are delighted to have attracted a partner of the calibre of Sumitomo, who brings a wealth of experience and significant financial backing in the global coal mining, trading and related steel industries,” Managing Director Gerhard Redelinghuys said.
Sumitomo is also the co-owner of the Hail Creek Mine, located just 16 kilometres from Hillalong.
Under the farm-in Sumitomo would fund $2.5 million for Phase I exploration to earn an initial 10 per cent interest. Bowen has immediately utilised these funds start works at five planned drill sites.
This program will target two economical coal seams, Elphinstone and Hynds, within the Rangal Coal Measures target currently being mined at nearby locations.
Reportedly, historical exploration conducted by Rio Tinto proved the existence of these seams and indicated they contain coking coal qualities.
Bowen will test these seams and, if confirmed, it will test the coal quality and quantity for a mine planning study and resource estimate. subject to a positive outcome on the first five holes. Approvals for the additional two sites remain in progress.
To assist with delivering a turnkey exploration program, the company engaged Xenith Consulting. Drill site clearing and inductions for the drill crew are underway.
Two further sites south of the project will be drilled, subject to a positive outcome on the first five holes. Approvals for these sites remain in progress.
The company’s share price is up 5.17 per cent today, with shares trading at 6.1 cents apiece at 3:19 AEDT.