Carpentaria Exploration and JV partners intersect coal in first hole in Galilee Basin

In the first hole drilled at the Hughenden Coal Project, in the northern Galilee Basin in Queensland, by JV partners Guildford Coal Limited and Carpentaria Exploration (ASX: CAP) (20% interest), coal was intersected, interpreted as being from the Betts Creek Beds of the Galilee Basin - at depths shallower than previously assessed.

Carpentaria has been on a roll of late, making significant progress at its Hawsons magnetite discovery near Broken Hill, a new magnetite iron province, with recent announcements de-risking funding and mitigating project risk.

Guildford Coal is providing the initial phase of exploration funding for FTB, the owner of the EPC1394. Carpentaria owns 20% of FTB, with Guildford Coal holding the balance.

Eight tenements were granted, spanning an estimated 6,333 sq km of potential export thermal coal in Galilee and Eromanga Basins.

Guildford’s model for the northern end of the Galilee Basin suggested that the coal-bearing Betts Creek Beds were relatively deep in this central location, which has been supported by the first hole intersecting coal  at an estimated depth of 300m, some 100m shallower than the previously interpreted.

This proof of concept suggests a shallow dip of the coal beds down from the north to the south.

Carpentaria’s executive chairman, Nick Sheard, said the Company was encouraged by the initial results in one of the world’s top basins for thermal coal.

“The Galilee Basin has been the focus for a number of major coal export deals, and we are excited by the prospects for a thermal coal deposit favourably located near infrastructure,” Mr Sheard said.

“Guildford Coal has assembled a strong team with considerable expertise and experience in coal exploration, development and operations. These initial results have boosted confidence in Hughenden’s potential.”

“Hughenden has given Carpentaria exposure to potentially attractive export coal projects at minimal cost to shareholders, but with maximum upside,” Mr Sheard said.

“Carpentaria has now assembled an attractive range of projects, diversified both geographically and by commodity type across eastern Australia, including the exciting Hawsons magnetite iron and Euriowie tin discoveries near Broken Hill, NSW. Boosted by an aggressive exploration program and the efforts of our project partners, we are in an excellent position to achieve our goal of building strong cash flow-generating mining operations.”

The Phase 1 drilling program is also targeting potentially shallower coal-bearing units to the north and north east.