Source - RNS
RNS Number : 4990O
Altona Energy PLC
18 May 2018
 

Altona Energy Plc

 

("Altona" or "the Company")

 

Initial Drilling Programme Update

 

As announced on 24 April 2018, the Company intends to undertake an Initial Drilling Programme to commence the process of proving up the coal resource in the Westfield tenement.

Much of the southwest of this tenement has never been adequately explored.  Analysis of available drill results suggests that the Willoughby seam is present in this area at a depth and thickness that may be viable for mining operations, subject to the identification of a suitable resource.  It is the Company's target to identify at least 100m tonnes of economically extractable coal in the Westfield tenement.

Mr Newell, Altona's geologist, has reviewed all available data and has planned the Initial Drilling Programme.  This consists of up to 15 holes which will each be drilled to a depth of approximately 120m.  It is anticipated that it will take approximately three weeks to drill all 15 holes.  The funding required to complete this drill programme has been deposited in Altona's Australian bank account.

The following are required before drilling can commence:

1.    Issuing of Statutory Notices to landowner, Native Title holder and Petroleum Exploration Licence holder (commenced)

2.    Mines Department Approval in form of a Programme for Environmental Protection and Rehabilitation (drafting of the application has commenced with the assistance of Euro Exploration Services)

3.    Native Title Heritage clearance of drill sites (this will be organised through Native Title holders' lawyers)

4.    Drill rig availability

 

The Company anticipates that the drilling programme will take place in August 2018.  However, this is subject to change based on progress on the above.  The Company will announce to the market as and when each of these are arranged.

 

The Company is in the process of engaging a specialist consultancy to advise on the direction of the project's development and the best way to extract shareholder value.  This may be exportation of the coal but alternatives are potentially viable.

Nick Lyth, Altona CEO commented as follows:

"I am delighted to be able to provide an update with a target to drill in August 2018.  The economics of coal mining in Australia remain very positive and now is the right time to be developing the Westfield project.

"We are very pleased with the recent announcement from the Federal government of Australia that it is forming a panel which will look at policies to find new reserves and attract more investment into the resource sector.  Governmental support is an important component in developing a project such as this."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

 

For further information, please visit www.altonaenergy.com or contact:

 

Altona Energy plc

Nicholas Lyth, Chief Executive Officer

 

 

+44 7769 906 686

 

Northland Capital Partners Ltd (Nomad and Broker)

Matthew Johnson / Gerry Beaney (Corporate Finance)

John Howes (Corporate Broking)

 

 

+44 20 3861 6625

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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