Tasmanian Coal

This portfolio includes the Langloh, Avoca, Ouse and Elderslie Projects, which provide the Company with an opportunity to build a potential niche thermal coal export business in Tasmania.

 

Spitfire commenced an initial 10-hole drilling program at the Langloh Project in March 2010, representing the first exploration program to be conducted in the area since the early 1980s.

The Langloh Project comprises a granted tenement covering an area of 103km2 in the Derwent Valley region. The project area was extensively drilled and sampled by Capricorn Resources and Petrecon Australia between 1981 and 1982, with a total of 28 holes completed for 1,413 metres of drilling.

 

This resulted in the definition of an initial JORC compliant In Situ Inferred black coal resource of 10 million tonnes within an area approximately 7.25km long by 4.5km wide. Three seams were delineated averaging 3.6 metres in cumulative width and lying within 45 metres of the surface.

 

Spitfire will complete three (3) Rotary Air Blast (RAB) holes in the 2010 exploration program to test for extensions to the existing resource, which remains open both along strike and at depth. A further seven diamond holes will then be drilled to extract samples for coal quality analysis.

 

The Langloh Project is favourably located with respect to infrastructure. Historical and recent analysis of the coal suggests that it is of medium calorific value, possibly suitable for export markets in Asia.

 

Following completion of the Langloh drilling a second program comprising 23 RAB holes and 2 diamond drill holes will be undertaken at the Avoca Project. The key objectives of the drilling are to extract samples for coal quality analysis and test the area’s coal bearing potential.

 

Coal has been mined in the area surrounding Avoca almost continually since 1923. The historically worked seams display significant thickness of up to 3.6m in places.

 

Drilling will test the extent and quality of outcropping coal seams at Avoca. In addition, diamond drilling will be undertaken to extract samples for a detailed 3-month program of coal quality analysis which will be crucial to determining the next steps.

 

Spitfire intends to fully evaluate the development potential of the Tasmanian coal assets as soon as a full suite of data is available on coal quality and resource potential.