RMA Energy (ASX: RMT) will begin a reverse circulation drilling program at its Bulburrum Coal Project in Queensland with the mobilisation of a drilling contractor to site this week.
The program will comprise around 3,800 metres within 51 proposed drill sites and is targeting thermal coal measures previously defined through historic reverse circulation drilling in three discrete areas.
Located in the Eromanga Basin, with analogies to the known coal producing Surat Basin, the 2,700 square kilometre project is located about 22 kilometres southeast of East Energy Resource’s (ASX: EER) 1.74 billion tonne Blackall Coal Project.
Historic drilling at Bulburrum consists of over 60 reverse circulation holes for 4,480 metres and identified coal seams in the project area of between 0.3 and 4.55 metres.
A seismic survey showed coal seam stratums of between 2.43 and 33.8 metres thickness. Coal quality is yet to be defined.
Based on historic data, RMA has outlined an exploration target of 100 to 240 million tonnes of potentially sub bituminous thermal coal.
RMA’s planned drilling program is designed to test the areas with historic drill holes and to then further test areas along strike and down dip of previous drilling.
The company is targeting a maiden Resource for the project early in the second half of 2013.
Well-funded
RMA recently closed Rights Entitlement Issue which successfully raised A$8.56 million.
The company is now essentially debt free, with sufficient funds to commit to exploration operations at Bulburrum and its other coal projects.
RMA is in the process of raising further funds via the issue of shortfall shares under the Rights Entitlement Issue.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.