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Mining Projects Group granted first Delcarmen coal permit, exploration target up to 140Mt

Mining Projects Group granted first Delcarmen coal permit, exploration target up to 140Mt

Mining Projects Group (ASX: MPJ) has been granted the first permit for the Delcarmen Coal Project in Queensland and an exploration target of up to 140 million tonnes has already been outlined for the project. 

The Delcarmen Project also comprises EPC 2528, which remains in the process of being granted but the company does not anticipate any impediments to its grant. 

The two permits cover a combined area of 1,030 square kilometres of prospective ground 170 kilometres west of Brisbane, with existing rail infrastructure running through the tenements.

An independent geological report assessing the prospectivity of Delcarmen has established an exploration target range of between 30 and 140 million tonnes, of which up to 60 million tonnes has been identified as potentially semi soft coking coal. 

Historical exploration drilling suggests potential for large net volumes of high energy thermal coal and semi-soft coking coal over a number of coal-bearing formations.

The tenures underlie formations in the Triassic Esk Basin or Esk Trough and the Tarong Basin. 

The prospective coal-bearing units are the Main Range Volcanics (lignite); Tarong Beds; Gayndah Formation; and Esk Formation.

Significant coal discoveries in the Triassic Esk Basin or Esk Trough include Stanwell Corporation’s Kunioon deposit, which has a Measured Resource of 435 million tonnes of thermal coal which is supplying both Tarong power stations.

Rio Tinto's (ASX: RIO) Yarraman deposit lies just south of the Tarong Power Station and hosts a  Measured Resource of 54 million tonnes of thermal coal, while Cockatoo Coal's (ASX: COK) Taabinga deposit is also in the region and has a Measured Resource of 35 million tonnes of thermal coal.

Predictions about coal quality of the Delcarmen permits have been based on historical analysis, however a drilling program following the outcrop of the north-west trending Esk Formation has been recommended. 

The objective of this drilling program will be to add confidence to the exploration target to establish a JORC Resource for the project.

Initial exploration

An initial exploration plan will be based on rotary chip holes, followed by downhole logging using the standard geophysical tools – density, gamma, sonic and caliper. 

This information will allow the correlation of the seams, the precise thickness of the coal seams, and can indicate the relative quality of the coal seams. 

A total of 17 holes have been recommended with three holes in the southwest corner of the EPC, designed to contribute to a possible Inferred Resource tonnage after databasing and modelling. 

Several holes are planned in the northeast of the EPC to establish coal intersections recorded in registered water bores.

Before initial exploration programs are undertaken Mining Projects Group will wait for EPC 2528 to be granted to begin an exploration program over the entire project area. 

Delcarmen backstory 

In July last year, Mining Projects Group completed the acquisition of 100% of the issued capital of Delcarmen Energy, which holds the applications for the two Exploration Permits for Coal north and east of Kingaroy.

Several major deposits sit in close proximity, and 85 kilometres south within the Tarong Basin lies the major Meandu mine and the Tarong and Tarong North Power stations.

The acquisition provides Mining Projects Group with a footprint within a coal basin with coal discoveries, deposits and mines with an existing power station and historical rail infrastructure – that may require reconstruction and upgrading – dissecting the target area within 170 kilometres from Brisbane.

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