Guildford Increases Stake in Terra Energy and White Mountain
July 23, Guildford Coal Limited (ASX:GUF) --
The Board of Guildford Coal Limited (Guildford) are pleased to advise that the Company has moved to 74.76% ownership of its Mongolia based partnership with Terra Energy Ltd (Terra Energy), with a 4.76% increased stake.
Guildford is also pleased to advise that the Company has also increased its ownership stake in White Mountain Pty Ltd (White Mountain) to 59.6% with a 3.6% increased stake.
Mongolian Overview
Guildford increased its stake in Terra Energy through conversion of a loan facility into shares. Mick Avery Managing Director of Guildford stated "this is a positive outcome for Guildford Coal leading into production from the South Gobi project this quarter.Guildford Coal and Terra Energy's partnership remains strong and we look forward to working together to further develop our Mongolian assets".
Guildford holds a 74.76% stake in Terra Energy which controls 1 mining licence, 1 mineral development licence and 5 exploration licences contained in two projects in Mongolia. The projects are located in the coal bearing basins of the South Gobi and Middle Gobi which contain coking and thermal coals respectively.
The South Gobi Project has a 70.4Mt JORC Indicated and Inferred Resource for the North Pit of coking coal in the Permian Delin Shand formation suitable for open cut mining. There is a further Exploration Target# of 70Mt to 893Mt that has been identified in another 3 conceptual pits (East, Central and West).
The Board of Guildford Coal Limited (Guildford) are pleased to advise that the Company has moved to 74.76% ownership of its Mongolia based partnership with Terra Energy Ltd (Terra Energy), with a 4.76% increased stake.
Guildford is also pleased to advise that the Company has also increased its ownership stake in White Mountain Pty Ltd (White Mountain) to 59.6% with a 3.6% increased stake.
Mongolian Overview
Guildford increased its stake in Terra Energy through conversion of a loan facility into shares. Mick Avery Managing Director of Guildford stated "this is a positive outcome for Guildford Coal leading into production from the South Gobi project this quarter.Guildford Coal and Terra Energy's partnership remains strong and we look forward to working together to further develop our Mongolian assets".
Guildford holds a 74.76% stake in Terra Energy which controls 1 mining licence, 1 mineral development licence and 5 exploration licences contained in two projects in Mongolia. The projects are located in the coal bearing basins of the South Gobi and Middle Gobi which contain coking and thermal coals respectively.
The South Gobi Project has a 70.4Mt JORC Indicated and Inferred Resource for the North Pit of coking coal in the Permian Delin Shand formation suitable for open cut mining. There is a further Exploration Target# of 70Mt to 893Mt that has been identified in another 3 conceptual pits (East, Central and West).
The South Gobi site is expected to commence mining operations from the North Pit this quarter.
The Middle Gobi Project has 221.4Mt of Indicated and Inferred Resource of thermal coal in the Mid Gobi coal basin suitable for open cut mining. There is a further Exploration Target# of 165Mt to 830Mt that has been identified on this deposit. The Middle Gobi Project also contains fluorite mineralisation discovered outcropping on north western edge of the exploration licence with laboratory results of field grab samples revealing potential ceramic grade fluorite.
White Mountain Project Overview
Guildford increased its stake in White Mountain to 59.6% by taking up a full allotment of the first rights issue for White Mountain Pty Ltd. The other White Mountain shareholder, Galilee Co. Pty Ltd,elected not to participate in the rights issue, allowing Guildford the opportunity to also ascribe for these shares.
Mr Mick Avery, Managing Director of Guildford stated that "Guildford Coal is looking forward to developing the White Mountain Project, which has demonstrated the potential to support the development of a large open cut coal resource."
The White Mountain Project is located on the north eastern edge of the Galilee Basin in Queensland. Permian coal seams are known to outcrop in this location and were previously mined in the old Oxley Creek Coal Mine. The White Mountain Project is a potential early stage development opportunity located North West of Pentland and is well located to utilise existing rail and port capacity.
The White Mountain Project has a JORC Inferred Resource of 262Mt of thermal coal and there is a further Exploration Target# of 40Mt to 815Mt across the project. Subsequent to the JORC resource being estimated earlier in 2012, further coal intersections have been recorded and these results combined with further planned drilling should enable the JORC resource to be upgraded and increased this quarter.
The Middle Gobi Project has 221.4Mt of Indicated and Inferred Resource of thermal coal in the Mid Gobi coal basin suitable for open cut mining. There is a further Exploration Target# of 165Mt to 830Mt that has been identified on this deposit. The Middle Gobi Project also contains fluorite mineralisation discovered outcropping on north western edge of the exploration licence with laboratory results of field grab samples revealing potential ceramic grade fluorite.
White Mountain Project Overview
Guildford increased its stake in White Mountain to 59.6% by taking up a full allotment of the first rights issue for White Mountain Pty Ltd. The other White Mountain shareholder, Galilee Co. Pty Ltd,elected not to participate in the rights issue, allowing Guildford the opportunity to also ascribe for these shares.
Mr Mick Avery, Managing Director of Guildford stated that "Guildford Coal is looking forward to developing the White Mountain Project, which has demonstrated the potential to support the development of a large open cut coal resource."
The White Mountain Project is located on the north eastern edge of the Galilee Basin in Queensland. Permian coal seams are known to outcrop in this location and were previously mined in the old Oxley Creek Coal Mine. The White Mountain Project is a potential early stage development opportunity located North West of Pentland and is well located to utilise existing rail and port capacity.
The White Mountain Project has a JORC Inferred Resource of 262Mt of thermal coal and there is a further Exploration Target# of 40Mt to 815Mt across the project. Subsequent to the JORC resource being estimated earlier in 2012, further coal intersections have been recorded and these results combined with further planned drilling should enable the JORC resource to be upgraded and increased this quarter.
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