Menu

Location

The Pentland Project is located in the northern end of the coal bearing Galilee Basin in Queensland, Australia. The area is approximately 25km west of the town of Pentland and approximately 240km from the Port of Townsville. The Pentland Project covers 3,813 square kilometres of the North Eastern Galilee Basin with a variety of coal targets of both the Permian coal bearing Betts Creek Beds and the Jurassic coal bearing Blantyre and Ronlo Beds. These targets offer the opportunity for potential open cut and underground mining.

The Pentland project is made up of the following tenements EPCs 1890, 1892, 1893, 1962, 1963 and 1964 contained in the northern end of the Galilee Basin, Queensland Australia.

Map-1-GUFGalileeprojectsApr2013   Map5-PentlandprojectApril2013v2

Resource and Exploration

TerraCom has prepared a detailed drilling program for the Pentland Project that will identify target zones for more detailed and structured exploration. Target areas have been delineated following comprehensive seismic review of the Carmichael Seismic Survey (CAR82). One drill rig has been forecast to operate on the Pentland Project tenements for 2013.

An Exploration Target* for the Pentland Project has been prepared by MDM, of 0.30Bt to 2.89Bt, across coal seams within four (4) formations contained in the Cretaceous to Jurassic Eromanga Basin (Ronlow Beds, Mackunda Formation, Birkhead Formation, Blantyre Sandstone) and two (2) within the Triassic to Carboniferous Galilee Basin (Warang Sandstone and Betts Creek Beds). Additional large tonnages of low rank lignite within the overlying Tertiary Glendower Formation, or Claraville Beds, may prove economic in the future, but considerable additional exploration is required to delineate more of these intersections.

An exploration plan is currently being developed with the view of exploration drilling taking place in late 2013/2014.

*References to Exploration Targets in this document are in accordance with the guidelines of the JORC code (2004). As such it is important to note that in relation to reported Exploration Targets any references to quality and quantity are conceptual in nature. Exploration carried out to date is insufficient to be able to estimate and report coal resources in accordance with the JORC code (2004). It is uncertain if further exploration will result in the determination of a Coal Resource.

Infrastructure

The Pentland Project will benefit from the same strategic opportunities as its sister projects at Hughenden and Clyde Park including the Memorandum of Understanding signed with Port of Townsville Limited (POTL) and a commercial agreement with Asciano Limited to conduct a feasibility study on the logistics of exporting coal through Townsville Port

Feasibility and development

The Pentland Project tenements were granted during March 2012, and the planned drilling program has not yet commenced due to review of historical data and seismic information. The region is expected to host prospective mining opportunities.