Rio Tinto Exploration (RTX) have informed that on-ground exploration work has commenced on EPC1824, our Mt Hillalong joint venture tenement. The first drill rig mobilised on to site on Monday of this week. The first hole has been collared ready for the commencement of drilling.
RTX have until 23 August 2015 to undertake and complete their programme of exploration. RTX are obliged to sole fund a minimum exploration expenditure of $700,000. Within this time period, RTX can exercise their option to acquire a 75% interest in EPC1824 by making a defined payment to our 100% owned subsidiary Area Coal Pty Ltd.
The initial drilling should show in a relatively short period of time the tenement’s coal bearing potential. Assuming the prospectivity of the exploration targets is confirmed, analysis will then be required to indicate the tenement’s coal quality. Outcomes from the drilling programme will be announced to the market subsequent to the drilling of each hole. Coal analysis and quality testing will follow some time later.
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