Coalworks EPC 1145 at Hodgson Vale near Toowoomba - more interesting information ...

2008 Coalworks Ltd Prospectus - Page 55

Coalworks Ltd holds the Hodgson Vale project area under Exploration Permit EPC 1145. The licence covers 51 [square kms] and is located approximately 10 kms south of Toowoomba in southeast Queensland.

Coalworks Ltd Prospectus - Page 42

The EPC contains an exploration target of 5 to 20 million tonnes of thermal coal in the northern part of the tenure. The area containing this exploration target is restricted to the north by encroaching suburban development, and the New England Highway also crosses the area
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The coal is typically high ash, erratically distributed and occurs in relatively thin seams. These factors limit the potential of Hodgson Vale to host a significant economic coal deposit.

Coalworks Ltd Prospectus - Page 61

The only coal intersected by drilling has been within a small area in the north of the EPC.
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The 6.8m (accumulated) coal intersection from 82.5m in depth is insufficient for viable open cut extraction, and the maximum 1.2m seam thickness in that hole is extremely thin for underground extraction. This hole marks the southern limit of the main potential coal resource.
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Note that the area of the exploration target is affected by the New England Highway which crosses this area.
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The available geological information indicates that the EPC is only likely to contain relatively small tonnages of coal. The coal is erratically distributed and occurs in relatively thin seams. The coal has high ash content. This will be a difficult area in which to delineate economic resources of coal.

Coalworks Ltd Prospectus - Page 78

3.11 Reductions

On 20 August 2009 the area of [EPC 1145] must be reduced from 17 sub-blocks to 13 sub-blocks. A further 20 per cent reduction will be required in the event that renewal of [EPC 1145] is sought.

EPC 1145

Grant date - 21 September 2007

Expiry date - 21 September 2010

Expenditure
commitment - Years 1&2 - $305,000; year 3 - $100,000.