Carpentaria Exploration bullish on coal intersections at Hughenden Coal Project

Carpentaria Exploration (ASX:CAP) has reported that additional coal has been intersected by its partner, Guildford Coal (ASX:GUF) from drilling at the Hughenden Coal Project in Queensland’s northern Galilee Basin.  Carpentaria holds a 20% interest in the project, with Guildford the remaining 80%.

The drilling results from the Hughenden Coal Project in Queensland’s northern Galilee Basin, with the first three drill holes intersecting coal interpreted as from the Basin’s Betts Creek Beds were released by Guildford to the ASX on 26 July 2010.

A second drill rig is planned to commence in September targeting open pit coal potential on EPC1478 once granted.

Guildford is spending $2 million on exploration at the project through to the definition of an Inferred Resource. The project partners currently have eight granted tenements spanning 6,333 square kilometres across the Galilee and Eromanga Basins, targeting export quality thermal coal and in a favourable location for infrastructure.

Carpentaria’s executive chairman, Nick Sheard, said Guildford was anticipating the completion of a JORC-defined Inferred Resource before the end of 2010, which if achieved, would add significant value to Carpentaria’s project portfolio. A second drill rig is planned to commence in September, pending granting of the EPC1478 tenement.

“Carpentaria is highly encouraged by the initial drilling results at Hughenden, with the potential for the development of a thermal coal deposit targeting export markets. This adds to our current attractive range of projects across eastern Australia, including the Hawsons iron and Euriowie tin discoveries near Broken Hill,” he said.

“Boosted by an aggressive $10 million exploration program this calendar year and the support of our joint venture partners, Carpentaria is moving quickly to make the transition from explorer to mining house in an environment of rising commodity prices.”

Guildford Coal has completed 3 mud rotary holes in the region on the first granted tenement (EPC1394), intersecting coal at an estimated depth of 300 metres, some 100 metres shallower than the previously interpreted. Of the three holes completed to date, interpreted Betts Creek Beds coal was intersected in every hole of tenements. Guildford Coal said the coal intersections proved continuity and significant lateral extent of target Galilee coal seams confirming exploration target. 

The results reinforced the significant Galilee Basin potential – large export thermal coal potential with Guildford’s tenements located in close proximity to infrastructure.