epc1318 geological report

EPC1318RidgelandNorth

POBox3324,Newstead,Qld4006Phone:(07)38517400Fax:(07)38517499

GeologicalReportJanuary2011

EPC1318RidgelandNorth(Application)

Preparedby:GeoConsultPtyLtd

For:QueenslandCoalCorporationPtyLtd.



ExecutiveSummaryThreedistinctcoalexplorationtargetsarepresentinEPC1318;

1) PermianBandannaFormationcoalseams,asapotentialcokingcoalproduct.2) EarlyJurassicBoxvaleMembercoalyunit,asapotentialthermalcoalproduct.3) ReidsDomeBedscoals,asalowyieldsemisoftcokingcoalproductorexportthermalproduct.

ExplorationTargets:Conceptual

ExplorationTargetTargetCoalProduct CoalSeam/Formation EstimationBasis

600700Mt* Opencut,potentialthermalcoalproduct BoxvaleSandstoneMemberSurface300mdeep,avseamthickness=10m,possiblelateralextent=50km2,RD=1.5

350450Mt* Underground,potentialcokingcoalproduct BandannaFm.500600mSBEAandCSGwelldepthranges,avseamthickness=4m,possiblelateralextent=70km2,RD=1.5

1,1001,300Mt* Underground,potentialcokingcoalproduct BandannaFm.6001000mSBEA&CSGwelldepthranges,avseam=4m,possiblelatextent;west=80km2/east=140km2,RD=1.5

1,2001,400Mt* Opencut,potentialsemisoftcokingcoalproduct ReidsDomeBedsCoal150400mdeep,avseamthickness=20m,possiblelateralextent=50km2,RD=1.5

* These exploration targets are conceptual in nature, there has currently been insufficient exploration to define a Resource. It is uncertain if further exploration will result in determination of a resource. Geological modelling and or drilling is required to establish a coal resource. Nb. Uncertainty regarding the naming and correlation of Boxvale St and Reids Dome Beds coals is noted. They may be the same target or represent 2 distinct targets.

ExplorationTargetsFigure.Tenementarea(whiteoutline),withdepthtotopofBandannaFormation(contours),Bandanna Formation exploration target area 500600m deep (dark green outline), Bandanna Formationexploration target areas 6001000m deep (light green outline), Boxvale SandstoneMember coals explorationtargetarea(lightblueoutline),ReidsDomeBedscoalstargets(darkblueoutline).DataSummary:

InformationType WithinTenure AssociatedtoTenureDrilling 60holes 100+holes

WirelineDensity 1015logs 50+logs2DSeismic 100150linekms 200+linekms

Nb. Information regarding data locations, quality and results are presented in report under previous exploration.

BandannaSeamTarget500600m


ReidsDomeBedsTarget

BoxvaleSandstoneMemberTarget



ExplorationTargetsFigure.Tenementarea(whiteoutline),withdepthtotopofBandannaFormation(contours).Left: Boxvale Sandstone Member coals exploration target 600700Mt (light blue area). Middle: BandannaFormationexplorationtarget,500600mdeep350450Mt(darkgreenarea),6001000mdeep1,1001,300Mt(lightgreenoutline).Right:ReidsDomeBedscoals1,2001,400Mt(darkbluearea) Geoconsult Pty Ltd has undertaken research into the coal potential of noncompetitive applicationEPC1318 for Queensland coal Corporation Pty Ltd. EPC1318 is located 20 km northeast of InjuneQueenslandandcoversanareaof450km2ofmainlyplainscountry.Therearenocompetingmining leasesovertheEPC.Threemineralexplorationtenementsoverlapthecentralportion.Twopetroleumleasesoverlaptheeasternportionandonepetroleumexplorationtitleoverlapsinthewest.ThecentralsouthiscoveredbyconstrainedareaDoonkumaStateForest.Theprinciple tectonicunits are theCometPlatform (to the east) andDenison Trough (to thewest).SedimentsontheCometPlatformaregentlydippingandweredeposited inastableenvironment.TheDenison Trough is more structurally disturbed and represents a more unstable depositionalenvironment.ThesedimentsregionallyplungetothesouthandontheCometPlatformdipgentlytotheeasttowardstheTaroomTrough.Theyextendstratigraphicallyfromthe JurassicHuttonSandstonetothe Permian Reids Dome Beds. Coal seam development ismost pronounced in the Early JurassicBoxvaleSandstone,theLatePermianBandannaFormation,andtheEarlyPermianReidsDomeBeds.ThirtyCSGandtwopetroleumexplorationwellshavebeendrilledwithintheEPC,mainlyintheeastandsouth. GSQTaroom1111Awasdrilled justoutsidetheEPC inthefarsouth,OtterExplorationdrilledtenholesonandsouthoftheEPC,BMAexploredextensivelytotheimmediatesouthoftheEPC.100150linekmofseismicisrecordedintheEPC.CSGandpetroleumwellsestablishedverydeepthickintersectionsoftheBandannacoalinthewestandeast.CSGKingston1well intersecteda5.1mcoalseamat550mnearthecentre. Coal intersections inTaroom 1111A were interpreted as within the Reids Dome Beds. 5.1m and 12.5m seams wereintersectedat298mand426mrespectively.BMAinterpretedthecoaltothesouthaswithintheReidsDomeBedsanddefinedtheRidgelandCoalDeposit.Definitive coal quality data is lacking. The Geology of Australian Coal Basins volume indicated aBandanna Seamwashed coal quality of ash 710%, volatiles 2732% and Rvmax of 0.560.61. OtterExplorationcompositeda22mseamsection from theBoxvaleSandstone.Thecomposited22mseam,rawcoalanalysed:ash55%,moisture1.32.3%,volatiles1725%.There isnowashabilitydatatohandbutwashingofthesestonebandedseamsmayproduceamarketableproduct.



IntroductionQueensland Coal Corporation Pty Ltd commissionedGeoConsult Pty Ltd in January 2010 tocompile and reporton geologicaldata related to EPC1318 relevant to coal exploration. Thisworkhas involved researching geologicalmaps, reports and companyexplorationdata fromGeoscienceAustraliaandtheDepartmentofMinesandEnergy,Queensland.ThedatasourcesreviewedaresummarisedinTable1.Table1Datasources

Information SourceMining&Tenure Currentandhistoricalexplorationtenements IRTM(InteractiveResourceTenementMap);EPCs,ML,MDLs,ATPs,PL,Queenslandcoaldeposits DepartmentofMinesandEnergy,QueenslandMiningandproductionstatistics DepartmentofMinesandEnergy,QueenslandGeology QueenslandGeology GSQPublication383 QueenslandGeology1:2,500,000mapandnotesBowenBasinGeology GeoscienceAustralia,CSIROgeologicalmap2008andsupermodel2000RegionalGeology GSQ1:250,000geologicalmappingsheetsQueenslandCoalGeology GeologyofAustralianCoalBasins,QueenslandCoals14th edition,Exploration Queenslandregionaldrilling IRTM(InteractiveResourceTenementMap);GSQstratigraphicdrilling,petroleumandgaswells,DMEcoaldrillholes.Historicalcompanyexploration QDEX(Queensland DigitalExplorationReportingSystem)Coaltenementrelinquishmentreportsetc.QPEDPetroleumexploration QueenslandPetroleumandGaswelldataWaterboreInformation QueenslandwaterboredatabaseTopography&Infrastructure Topographicmaps GeoscienceAustralia1:250,000sheetsDigitaltopographicsurface GeoscienceAustralia9grid

Landholderinformation Cadastraldatabase,RP DatabaseEnvironmentandNativeTitle EnvironmentalInformation EPAwebsitehttp://www.epa.qld.gov.auCulturalHeritageandNativeTitle EPA/IRTMhttp://www.epa.qld.gov.au



LocationandGeographicSettingEPC1318islocated20kmnortheastofthetownshipofInjuneinQueenslandandcoversanareaof approximately450km2. Figure 1 shows the locationof EPC1318 in relation toother coalexplorationtenuresinQueensland.

Figure1RegionallocationmapofEPC1318.Tenementarea(orangefill),Queenslandscoalexplorationtenure(lightgreyfill),Queenslandsmineraldevelopmentlicences(mediumgreyfill),Queenslandsminingleases(darkgreyfill),townships(blackdots),rail(blacklines),coalterminals(shipsymbols).

Figures24satellite image, topographic,cadastralmaps illustrate thegeographicsetting,anddensityofruralproperties.



ThecountryinwesternsectionoftheEPCisflatreflectingtheunderlyingflattogentlydippingHuttonSandstone(CR8591).Theeasternsectionismoreundulatingandpartlydissectedwherethe Boxvale SandstoneMember of the Jurassic Evergreen Formation tends to form scarps(CR8591).

Figure2LandsatsatelliteimageofEPC1318.Tenementarea(orangeoutline),roads(redlines),creeks(bluelines),homesteads(blackdots).FullsizemapinAppendix1.



Figure3 TopographicmapofEPC1318. Tenementarea (orangeoutline), topographic contours (brown lines),roads (red lines), creeks (blue lines), homesteads (black dots), native vegetation (green fill). Full sizemap inAppendix1.

Figure4CadastralmapofEPC1318.Tenementarea(orangeoutline)andcadastralboundaries(greylines)withlotandplannumbers(greytextlabels).FullsizemapinAppendix1.



GeologyFigure5displaysthegeologicalmappingwhichhasbeencompiledandreviewedaspartoftheexplorationworkconducted in theEPC1318area. Geologicalmapsused includeCSIRO2008BowenBasinGeology,GSQ1:250,000geologicalmapsheets(Taroom,Eddystone).

Figure5GeologicalmapsofEPC1318.Left)GeologicalsurveyofQueensland1:250,000scaleseriesgeologicalmappingwithtenement(orangeoutline),completemaplegend(http://www.geoscience.gov.au/bin/mapserv36?map=/public/http/www/geoportal/250/index.map&mode=browse&layer=map250&queryon=true).Right)BowenBasingeologicalmappingbyCSIROin2008withtenementarea(orangeoutline),majorfaults(blacklines),folds(bluelines)completemaplegendcanbelocated(http://www.csiro.au/products/BowenBasinMap.html).The regional geology of EPC1318 includes the southern part of the PermianTriassic BowenBasinwhereitisoverlainbyMesozoicsedimentsoftheSuratBasin(Table2).ThedistributionofrockunitsatsurfaceiscontrolledbythesouthplungingMimosaSynclineinthedistanteast(nearTaroom),thesoutheasterlyplungingextensionoftheCometRidgealongtheeasternperimeteroftheEPCandthesouthernDenisonTrough inthewest. TheArcadiaAnticline along the eastern perimeter of the EPC locates the western edge of the CometPlatform.AGrabenstructuretrendingNWSEacrossthecentralwestofEPC isshownonthe2008CSIROBowenBasingeologymap.



Table2StratigraphicframeworkofEPC1318.Geologicalsequenceswithcoaltargetsareshown(orangearrows).



CurrentMiningandExplorationTenureEPC1318wasappliedforon30thMay2008byQueenslandCoalCorporationPtyLtd.AtthetimeofthisreporttheEPCwasundernoncompetitiveapplication. TheEPCcovers145subblocksoveranareaofapproximately450km2.Figure67shows thecurrentexploration,miningandpetroleumtenuresassociatedwithEPC1318.No current coalmining leases are present in the vicinity of the EPC. Mineral developmentlicence applications MDL446 and MDL447 (Winzil Energy) are adjacent to the EPC to thenorthwest.Atthetimeofthisreport,surroundingExplorationPermitsforCoalareheldbyBHPCoal Pty Ltd (EPC851, EPC1277), Tilox Resources Pty Ltd (EPC1110),Winzil Energy Pty Ltd(EPC1435)andArgosQldPtyLtd(EPC1190).OfthesetheBHPRidgelanddepositispotentiallythemostsignificant.NocurrentmineralminingleasesorminingclaimsarepresentinthevicinityoftheEPC.Threemineral exploration tenements partially overlap EPC1318; granted EPM18693 in the south(RidgeExplorationPtyLtd),applicationEPM18326inthecentre(Foster,Shirley)andapplicationEPM18689inthenorth(RidgeExplorationPtyLtd).PetroleumLeasesPL90andPL91(SantosTogaPtyLtd)overlaptheeasternportionofEPC1318.Associatedpetroleumpipeline leasesalso cross theEPC.PetroleumexplorationareaATP337(SantosQNTPtyLtd)overlapsthewesternportionofEPC1318.A corridor in the central southof EPC1318 is coveredby constrained area Doonkuna StateForest.ThenortheastperimeteroftheEPCisadjacenttosterilelandareaNationalPark.



Figure6CoaltenureassociatedwithEPC1318. Tenementarea(orangeoutline),mineraldevelopment licences(WinzilEnergyMDLapplications blue fill),explorationpermits for coal (grey fill)withEPCnumberandholder(grey text),sterile landarea (nationalparkgreen fill).BHPRidgelandcoaldeposit is locatedonEPC851 to thesouth.FullsizemapinAppendix1.

Figure7Left)MineraltenureassociatedwithEPC1318.Tenementarea(orangeoutline),explorationpermitsforminerals(lightorangefill)withEPMnumberandholder(browntext).Right)PetroleumandgastenureassociatedwithEPC1318. Tenementarea (orangeoutline),production leases (yellow fill),explorationpermits (lightyellowfill),petroleumpipelineleases(bluelines).FullsizemapsinAppendix1.



PreviousCoalTenureCoalexplorationintheapplicationareainthepasthasbeensparse.HistoricEPCsarerecordedoverlappingEPC1318duringthe1970s,1980s,2000sand2010s.Figure8showsthelocationofhistoricalEPCtenuresassociatedwiththearea.NoEPCswereheldduringthe1990s.ThecompanyreportsassociatedwiththeEPC1318aresummarizedinTable3.1970s 1980s

2000s 2010s

Figure8Previousexplorationpermitsforcoal,bydecade,nearEPC1318.Tenementarea(orangeoutline),1970sEPCs(blue),1980sEPCs(green),2000sEPCs(greenbrown),2010sEPCs(brown).Previouscoalexplorationwithinthetenureoccurredinthe1980s.FullsizemapsinAppendix1.



Table3HistoricalExplorationReports(selectedlist)EPC1318DataReviewCoal Explora tion Re ports

De c ade Te nure CR Numbe r Re port Title OBJECTID

1980 EPC279 8591 GEOLOGICAL REPORT AND PROPOSED DRILLING PROGRAMME, A- P 279C, ARCADIA. 2

1980 EPC279 8592 HALF YEARLY REPORT FOR PERIOD ENDED 26.12.80. 2

1980 EPC279 9504 A- P 279C, ARCADIA, REPORT ON AREAS RELINQUISHED ON 26.12.1980. 2

1980 EPC279 9505 A- P 279C, ARCADIA, 6 MONTHLY REPORT FOR THE PERIOD ENDED 26.6.1981. 2

1980 EPC279 10782 A- P 279C ARCADIA, REPORT ON AREA RELINQUISHED ON 26.12.81. 2

1980 EPC279 10783 A- P 279C, ARCADIA, SIX MONTH REPORT FOR PERIOD ENDED 26.12.82. 2

1980 EPC347 9647 A- P 347C, FAIRVIEW, SIX MONTHLY REPORT FOR PERIOD 30.03.81- 30.09.81. 70

1980 EPC347 10349 EPC 347, FAIRVIEW, FINAL REPORT FOR PERIOD 30/9/81- 23/2/82 70

1980 EPC385 10972 SIX MONTHLY REPORT FOR THE PERIOD 17.02.82- 16.08.82, A- P 385C, WESTGROVE (R8257). 108

1970 EPC259 11004 A- P 259C, MERIVALE REPORT ON AREA RELINQUISHED FROM 26.04.82. 180

1970 EPC259 7518 A- P 259C MERIVALE, SIX MONTHLY PROGRESS REPORT FOR PERIOD 27.4.1979- 26.10.1979. 180

1970 EPC259 7993 A- P 259C MERIVALE, SECOND SIX- MONTHLY PROGRESS REPORT FOR PERIOD 27.10.79- 27.4.80. 180

1970 EPC259 8136 A- P 259C MERIVALE, REPORT ON AREA RELINQUISHED 26.4.80. 180

1970 EPC259 8357 A- P 259C, MERIVALE, THIRD 6 MONTHLY REPORT FOR PERIOD 27.4.80- 26.10.80. 180

1970 EPC259 9125 A- P 259C MERIVALE, SIX MONTHLY PROGRESS REPORT FOR PERIOD 27.10.1980- 26.4.1981. 180

1970 EPC259 10646 A- P 259C, MERIVALE, SIX MONTHLY PROGRESS REPORT FOR PERIOD 27.10.81- 16.04.82. 180

1970 EPC259 11298 A- P 259C, MERIVALE, REPORT ON AREA RELINQUISHED FROM 15.07.82. 180

1970 EPC259 11299 GEOLOGICAL EVALUATION OF A- P 259C, MERIVALE. 180

1970 EPC259 12222 A- P 259C, MERIVALE, 6 MONTHLY PROGRESS REPORT FOR PERIOD 27.10.82- 26.04.83, (REPORT 1983- 51). 180

1970 EPC259 12344 A- P 259C, MERIVALE, REPORT ON AREA RELINQUISHED FROM 26.04.83. 180

1970 EPC259 13083 A- P 259C, MERIVALE, SIX MONTHLY PROGRESS REPORT FOR PERIOD 27.10.83- 26.04.84 (1984/30). 180

Pe trole um Explora tion Re ports (Incomple te list)


2000 EPP805 43772 A- P 805P, PRODUCTION TESTING REPORT FOR DONGA 3 TO 30/6/06 95

2000 EPP805 44317 A- P 664P, 706P, 805P, 807P, 809P, COMBINED RESERVES REPORT FOR THE SIX MONTH PERIOD ENDING 30/6/06 95

2000 EPP805 44401 EPP 805, OIL DONGA 3, WELL COMPLETION REPORT 95

2000 EPP805 49201 A- P 805P, DONGA, ANNUAL REPORT FOR PERIOD 1/9/06 TO 31/8/07 95

1990 EPP490 23086 EPP 419, 490, COMET RIDGE METHANE PROJECT, OVERVIEW & TECHNICAL SUMMARY 23

1990 EPP526 27933 EPP 526, TPC FAIRVIEW 2, WELL COMPLETION REPORT 47




1990 EPP526 29067 A- P 526P, TPC FAIRVIEW 9, WELL COMPLETION REPORT 47



1990 EPP526 32252 A- P 526P, PL 92, TPC COMET RIDGE 1998C, FINAL SEISMIC SURVEY REPORT 47

1990 EPP526 33934 A- P 526P, TPC DAWSON 3, WELL COMPLETION REPORT 47

1990 EPP526 33938 A- P 526P, TPC DAWSON 2, WELL COMPLETION REPORT 47


1990 EPP526 34753 A- P 526P, TOG CLEMATIS CREEK 1, WELL COMPLETION REPORT 47

1990 EPP526 37233 A- P 526P, TOG PLANET DOWNS 1, WELL COMPLETION REPORT 47




1990 EPP526 38570 A- P 526P, TOG LYND RANGE 1, WELL COMPLETION REPORT 47

1990 EPP526 38660 A- P 526P, TOG BEDOURIE 1, WELL COMPLETION REPORT 47

1990 EPP526 39238 A- P 526P, TOG MOUNT ALDIS 2, WELL COMPLETION REPORT 47

1990 EPP526 39421 A- P 526, PL 90, 91, 92, 99, 100, PETROLEUM RESERVES REPORT FOR THE SIX MONTH PERIOD ENDING 30/6/05 47

1990 EPP526 39945 A- P 526P, TOG DEEP CREEK 1, WELL COMPLETION REPORT 47

1990 EPP526 45543 A- P 526P, TPC FAIRVIEW 14, WELL ABANDONMENT REPORT 47

1990 EPP526 45544 A- P 526P, TPC FAIRVIEW 15, WELL ABANDONMENT REPORT 47

1990 EPP526 51879 A- P 526P, PARTIAL RELINQUISHMENT REPORT FOR PERIOD ENDING 31/10/07 47

1980 EPP337 12761 RA- P 337P, AAR COWLEY 1, WELL PROPOSAL REPORT 71

1980 EPP337 13121 YELLOWBANK FIELD STUDY, A- P 337P. 71

1980 EPP337 13578 A- P 337P, AAR WESTGROVE 6, WELL COMPLETION REPORT 71

1980 EPP337 14413 BRIEF PALYNOLOGICAL REPORT ON AAR YELLOWBANK 1, A- P 337P, (REPORT NO. 265/1). 71

1980 EPP337 14523 PALYNOLOGICAL REPORT ON AAR MAINTOP 1, A- P 337P, (REPORT NO. 241/1). 71

1980 EPP337 14591 AAR TRIBUNE 1, PROGNOSIS REPORT, A- P 337P, QLD. 71

1980 EPP337 14593 AAR LOWESBY 1, PROGNOSIS REPORT, A- P 337P, QLD. 71

1980 EPP337 16920 DENISON TROUGH PROSPECTS AND LEADS INVENTORY, A- P 337P, QLD, (CSR REPORT NO. A1072). 71

1980 EPP337 16995 TOP OF MANTUAN REFLECTOR TWT STRUCTURE MAP, A- P 337P, DENISON TROUGH, QLD, (REPORT A 1100). 71

1980 EPP337 17350 A- P 337P, PARTIAL RELINQUISHMENT REPORT. 71

1980 EPP337 19107 A- P 337P, DENISON TROUGH, MARENGO SEISMIC SURVEY, FINAL REPORT 71

1980 EPP337 21198 A- P 337P, AGL MOUNT HUTTON 1, POST DRILL APPRAISAL 71

1980 EPP337 22625 EPP 337, CQN WARRINILLA 6, GEOLOGICAL PROGNOSIS 71

1980 EPP337 23889 EPP 337, AGL REBEN DOWNS 1, GEOLOGICAL & DRILLING PROGRAMME 71

1980 EPP337 24005 A- P 337P, DENISON TROUGH, SEQUENCE STRATIGRAPHY OF THE ALDEBARAN SANDSTONE GROUP 71

1980 EPP337 24805 A- P 337P, AGL CHESNEY 1, WELL COMPLETION REPORT 71

1980 EPP337 24862 A- P 337P, AGL REBEN DOWNS 1, WELL COMPLETION REPORT 71

1980 EPP337 25343 A- P 337P, YOOTHAPPINNA EXPERIMENTAL MINI- SOSIE SURVEY, FINAL REPORT 71

1980 EPP337 28835 A- P 337P, SPO KIA ORA WEST 1, WELL PROPOSAL REPORT 71

1980 EPP337 31091 A- P 337P, 451P, 553P, SPO SD95, SPO SD95B, FINAL ACQUISITION AND PROCESSING REPORT 71

1980 EPP337 31867 A- P 337P, SSL YANDINA 2, WELL PROPOSAL REPORT 71

1980 EPP337 31868 A- P 337P, OCA RIGEL 1, WELL PROPOSAL REPORT 71

1980 EPP337 31869 A- P 337P, OCA YANDINA 3, WELL PROPOSAL REPORT 71

1980 EPP337 32880 A- P 337P, BRIEFING MATERIAL DENISON TROUGH 71

1980 EPP337 43691 A- P 337P, SSL MIRA 1, WELL ABANDONMENT REPORT 71

Pre- 1980 Reports ommited from table (>50 reports)

Mine ra l Explora tion Re ports (Inc omple te list)


2000 EPM13666 0 Report not located 464

2000 EPM16865 0 Report not located 2392

1960 EPM672 2999 REPORT ON AN AERIAL PROSPECTING CAMPAIGN CARRIED OUT IN QLD, 17.06.69- 6.11.69, A- P 672M, BOWEN BA 516

1960 EPM425 2460 INJUNE PROFILES 1- 54. 270

1960 EPM425 2459 FINAL REPORT ON A- P 425M INJUNE AREA, QLD. 270

1960 EPM425 2461 INJUNE AREA AERIAL PHOTOS FILED IN AIR PHOTO LIBRARY (REPORT MISSING FROM CR COLLECTION) 270



PreviousExplorationSeveralphasesofearlygeologicalinvestigationandexplorationhavebeenconductedovertheEPC1318 region. Earlyexploration in the regionwas contactedbyOil Search Limitedwhichdrilledanexplorationwell(OLS2HuttonCreek)inthe1930stoadepthof1429m.SeveralcoalseamswererecordedinthePermiansequenceabove500m(GSQPublication299).AustralianAssociatedOil fieldsN.LdrilledpetroleumexplorationwellKiaOra1toadepthof1655m, inthearea in1966(CR2005).Coalwas intersected intheJurassicandPermianstrata.The coal in the Permian was intersected at depths greater than 780m. Jurassic coal wasintersected in the lowerpartof theHutton Sandstone and theupperpartof the EvergreenFormationatdepthsrangingfrom91mto161m.In1975/76 theQueenslandMinesDepartmentdrilledTaroom1111A stratigraphicbore toadepth of 1206m, close to OLS 2 Hutton Creek (QGMJ 78[914]). Four coal seams wereintersectedfrom280mto600m,the2thickest intersectionswere12.5mand5.1m. WirelinelogsandcoressamplesofthePermiancoalseamsweretakenandanalysed.Otter Exploration NL and Allstate Exploration NL explored the region for opencut coal onEPC279between1979and1982(CR10783).Theinitialprogramcomprised24drillholestotesttheMiddle JurassicWalloonSubGroup coals located to the southofEPC1318.Resultsweredisappointing with coal intersections typically less than 0.2m thick (CR8592). A follow upprogram of 10 drillholes (ARseries) and 18linekm of seismicwere completed to test EarlyJurassic Evergreen Formation coals and Permian Coals. Best results were obtained fromdrillholeAR10 located approximately 5km south outside EPC1318. A coaly intersection 22mthick at 160m depth was intersected in the Boxvale Sandstone. The Boxvale SandstoneMembercoalyunitobserved indrillholeAR10wascorrelatedtoseveralholeswithinEPC1318(Figure9).Between 1981 and 1982 AGIP Australia explored the region for opencut coal on EPC347(CR10349). An initial28drillholeprogram (FVseries)was conducted to investigate the coaldevelopment intheEvergreenFormation. Resultsweregenerallydisappointinghowevercoalbandsandstringersarenotedinthegeologistslogsinmostdrillholes.Densitywirelinelogsareavalibleformostholes.ExplorationthenfocusedonthePermianBandannaFormationonthecrest of the Arcadia Anticline where corehole FV10 was drilled and density logged. TheBandannaFormationwasfoundtobe480mdeepwiththinandsplitcoalseams.Thebestcoalseamintersectionwas1.38mthickat547mdeepwithashof16.6%andRDof1.43.Figure10showsaschematiccrosssectionwhichsummarisestheirfindings.Santos Ltd drilled Kia Ora West 1 petroleum exploration well within EPC1318 in 1995(CR29047). ABandannaFormationcoalseam,4.5m thick,was intersectedat796mdeep. Asignificant carbonaceous and coaly intervalwas also intersected in the Staircase Formationdepthsbetween1350mand1600m.



Figure9PreviousexplorationresultsfromEPC279OtterExplorationNL.BoxvaleSandstoneMembercoals(blackshade)correlatedbetweenARseriesdrillholesacrossEPC1318.DrillholelocationsinrelationtoEPC1318(orangeoutline)shownininset.



Figure10PreviousexplorationresultsfromEPC347AGIPAustralia.RegionalstructuralschematiccrosssectionEW. LocationofEPC1318 (orangeoutline)withBlackwaterGroup (black&whitestriped fill,BackCreekGroup(dashedfill).SectionextendsfromtheNebineRidge(west)toTaroom(east).Fromthe1990sonwardstheexplorationfocus intheareashiftedtotheCSG(coalseamgas)potentialoftheBandannaFormation.In1999OCAdrilledKattanga1andKingston1CSGwellsin thewest of EPC1318. TriStar Petroleum, TOGA and Santos have extensively drilled theFairviewGasfieldontheeasternsideofEPC1318.Approximately30CSGwells(Fairviewseries)arewithinorimmediatelyadjacenttheEPC.ThesewellsshowBandannaFormationcoalseamintersections ranging from 2m to 6m thick, at depths between 500m and 900m. Figure 11showsthewirelinedensityprofileoftheKingston1well,5.1mBandannaSeamintersectionat550mdepthinthecentreofEPC1318.In 2004BMAbeganexplorationof theRidgelandDeposit adjacent to the southof EPC1318(BBS05paperpresentation,2005). Theyhavereviewedtheearlierdrillingandseismicdata intheareaand reinterpreted2 southerlyBoxvaleSandstone coal intersectionsasReidsDomesBeds.InitialBMAexplorationcomprised10drillholes,photogeologicalandpalynolgicalstudieswhichreportedlyhaveconfirmedtheirinterpretations.Drillholeshaveintersectedthick(+10m)coalseamsatdepthsof100mto300m(Figure12).ItissuggestedbyBMAthatanupliftedblockofPermiansedimentshasraisedtheReidsDomeBedstoshallowdepthspriortothedepositionofJurassicsediments.Thedepositissaidtobedippingat15degreestothenortheast.Basedontheirpreliminaryfindingstheyhaveestimatedopencutcoalresourceforsemisoftcokingcoalproductof200Mt.Figure13showsthegeologyandholelocationsonEPC851.

EPC1318



Figure11Kingston1CSGwellBandannaFormationcoalseamwirelinedensityprofile.Coalintervalidentifiedbylowdensityresponse(blackgradientfill)showsseam5.1mintersectionwithoutbands.InsertshowsthelocationofKingston1well(yellowdot)inrelationtotenementarea(orangeoutline)


POBox3324,Newstead,Qld4006 Phone:(07)38517400Fax:(07)38517499

Figure12 Previousexploration results fromEPC851BHPRidgelandDeposit. Graphic logandgeophysics from holesRDG50006,located2kmoutsidethesouthernboundaryofEPC1318.



Figure 13 Previous exploration results from EPC851 BHP Ridgeland Deposit. Location of adjacent EPC1318(orangeoutline)withseismic(purplelines),andBHPexplorationdrillholes(reddots).

EPC1318



Figure 14 shows the location of drillholes associated to the EPC1318 area. A total of 60drillholes are recordedwithin EPC1318. These holes comprise; 10 drillholes fromQDEX coalexploration reports,31CSGwells,2petroleumwellsand17waterbores. Inaddition1GSQstratigraphic bore and 2 DME stratigraphic bores of significance are locatedwith 5km butoutsidethetenement.

Figure14Drillholelocationmap.Tenementarea(orangeoutline).DrillholesfromQDEXcoalexplorationreports(reddots),GSQDMEstratigraphicbores(maroondots),petroleumwells(aquadots),CSGwells(yellowdots)andwaterbores(bluedots).FullsizemapinAppendix1.



Geophysics Approximately 20 seismic surveys lines (equating to near 150 linekms) are recorded on the IRTMsysteminthevicinityofEPC1318(Figure15).NoseismiclinesarerecordedintheIRTM crossing theRidgelandsDeposit to thesouthof theEPC.Seismicover theRidgelandDeposit hasbeennotedontheEPC851explorationsummary.

Figure 15 Seismic Lines andGeophysical Surveys. Tenement (orangeoutline), IRTM seismic lines (grey lines), EPC851seismiclines(greenlines),geophysicalsurveys(bluefill).FullsizemapinAppendix1. TheseismichorizoncorrelationSBEAdatasetextendsacrossEPC1318.Figure16showstheB70 depth to the topofBandannaFormation (redshallow~500m,yellowdeep~1500m)and the S20depthtothebaseofEvergreenFormation(redshallow~surface,yellowdeep~500m).



Figure16SBEAdatasetimagesB70andS20.Left)B70,depthtotopofBandannaFormationwithtenementarea (whiteoutline),major100mcontours(thickblacklines),minor10mcontours(thinblacklines).Right)S20,depthto thebaseoftheEvergreenFormation(indicatingapproximateBoxvaleSandstonedepth)withtenementarea(white outline), major 100m contours (thick black lines), minor 10m contours (thin black lines). Full size maps in Appendix1. Regionalgravity,magneticsandternaryimagesarepresentoverEPC1318(Figure17).BMAhas alsoruntheFalconairbornegravityoverEPC851in2007whichremainsclosedfile.

Figure17Regionalgeophysicalimages.Left)Gravityimagewithtenementarea(whiteoutline),lowgravity (blues),highgravity(reds).Centre)Totalmagneticintensityimagewithtenementarea(whiteoutline).Right) Ternaryimageswithtenementarea(whiteoutline).FullsizemapsinAppendix1. CoalQuality ThecoalqualitydataonthePermianBandannaSeamislimited.TheGeologyofAustralianCoal Basins indicatesawashedcoalqualityofash710%,volatiles2732%andRvmaxof0.560.61. ItappearthatthisresultistakenatorneartheRollestonCoalDeposit.Thesequalityvaluesare comparabletotheshallowPermian,seam1ofTaroom1111Aie.rawash818%,CSNgreater than3 (probable increasewithdepth),RvMax0.51.0 fromsurface to1200m.Table4shows thecoalqualityresultsfromTaroom1111A.



Table4CoalqualityanalysesresultsforTaroom1111A.

The coal quality data on the Jurassic Boxvale SandstoneMember coals is also limited. Theclosest comparable quality results come from the Otter Exploration drillhole AR10, locatedoutside the EPC 5km to the south.Composited raw coal quality analyses for an entire 22mintervalshowedAsh55%,Moisture1.32.3%,Volatiles1725%(Table5).Thesecoalsarehighlystonebanded. Ithasbeennoted thatBMAhas reinterpreted this intersection tobeReidsDomeBeds.CoalqualitydatafromtheBMAdrillingissummarisedinTable6.TheReidsDomeBeds coals are exemplifiedby theCullinlaringodeposit southof Emerald. Excluding stonebands thecoal is lowash, lowsulphur,highvolatilebituminousandhighhydrogen.Both theJurassicandtheReidsDomeBedscoalsarehighlybanded.Table5CoalqualityanalysesresultsforBoxvaleSandstoneMemberfordrillholeAR10.

Table6Selectivelyminedandwashed,potentialproduct coalqualitydetermined forReidsDome coals fromBMAexploration(BowenBasinSymposiumconferenceproceedings,2005).

Ash(%)

VolatileMatter(%ad)

Sulphur(%ad)

Phosphorous(%drybasis)

CSN Vitrinite(%)

RoMax(%)

9 36 0.90 0.050 3 70 0.600.80



ExplorationTargetThreedistinctcoalexplorationtargetsarepresentinEPC1318;

1) PermianBandannaFormationcoalseams,asapotentialcokingcoalproduct.2) EarlyJurassicBoxvaleMembercoalyunit,asapotentialthermalcoalproduct.3) ReidsDomeBeds,asalowyieldsemisoftcokingcoalproductorexportthermal

product.The primary exploration targetwould be the Permian Bandanna Formationwhich has beenrelatively well defined by CSG drilling. Initial exploration drilling should be directed to theregionaroundKingston1well(outsidePL),wherethick(5m)seamdevelopment ispresentatdepths less than600mor in theeast towards the topof theArcadiaAnticline,nearexistingFairviewdrilling(insidePL).TheGSQholeTaroom1111AimpliesthattheBandannacoalsaremissing fromthesectiontothesouthoftheEPC. Hence, iftheGSQ interpretation iscorrectthereisapotentiallimittotheBandannacoalsinthefarsouthoftheEPC.ThesouthernlimitispotentiallyaccompaniedbyfaultingwhichmayhaveraisedsectionsoftheBandannaCoalstoshallowdepthsbeneath Jurassiccover.TheGSQ interpretationsupportsthe interpretationoftheBMARidgelandDepositthattheReidsDomeBedsunderlieJurassicsedimentsinthesouth.TheBandannaFormationexplorationtargetshavebeencalculatedseparatelyasshallowerthan600mandatdepths600mto1000m.LocationoftheexplorationtargetsareshowninFigure18andsummarisedinTable7.A secondary targetwouldbe the JurassicBoxvale Sandstone coalyunitestablishedbyOtterExploration.Initialdrillingshouldfocusondefininglateralcontinuitybetweentheintersectionrecorded in Kia Ora 1 (within the EPC), AR10 (south of the EPC) and the other AR seriesdrillholes. SBEA depth to base of Evergreen Formation gives an indicative depth range ofsurfaceto300m,which issupportedby intersections inKiaOra1andtheARseriesdrillholes.LocationoftheexplorationtargetisshowninFigure18andsummarisedinTable7.Recent explorationwork by BMA suggests that the Early Jurassic coaly unit to the south ofEPC1318 may actually be Early Permian Reids Dome Beds. As such, another secondaryexploration targetwouldbe theEarlyPermianReidsDomeBedscoals. Sucha targetmaybepresentinanupthrownhorstofPermiansediments,andconcealedbeneathSuratBasincover.Orientation andextentof the target ispoorlyunderstood and isbasedon the impliedBMARidgeland Deposit (Refer to previous exploration section). Depth ranges (150m400m) arebasedonthedepthtobaseofPrecipiceSandstone.LocationoftheexplorationtargetisshowninFigure18andsummarisedinTable7.



Table7ExplorationTargetsConceptualExploration

TargetTargetCoalProduct

CoalSeam/Formation

CoalQualityType

EstimationBasis

600700Mt*Opencut,potential

thermalcoalproduct,washedfromshallowthickhighashseam

BoxvaleSandstoneMember

Raw:Ash55%,Moisture1.32.3%,Volatiles1725%

Surface300mdeep,avseamthickness=10m,possiblelateralextent=50km2,RD=1.5

350450Mt*Underground,

potentialcokingcoalproduct

BandannaFm.500600m

Washed:Ash710%,volatiles2732%

Rvmaxof0.560.61

SBEAandCSGwelldepthranges,avseamthickness=4m,possiblelateralextent=

70km2,RD=1.5

1,1001,300Mt*Underground,

potentialcokingcoalproduct

BandannaFm.6001000m

Washed:Ash710%,volatiles2732%

Rvmaxof0.560.61SBEA&CSGwelldepthranges,avseam=4m,possiblelatextent;west=80km2/east=

140km2,RD=1.5

1,2001,400Mt*Opencut,potentialwashedsemisoftcokingcoalproduct

ReidsDomeBedsCoal Raw:Ash818%,CSN>3150400mdeep,avseamthickness=20m,possiblelateralextent=50km2,RD=1.5

* These exploration targets are conceptual in nature, there has currently been insufficient exploration to define a Resource. It is uncertain if further exploration will result in determination of a resource. Geological modelling and or drilling is required to establish a coal resource. Nb. Uncertainty regarding the naming and correlation of Boxvale St and Reids Dome Beds coals is noted. They may be the same target or represent 2 distinct targets.

Figure18ExplorationTargetsFigure.Tenementarea(whiteoutline),withdepthtotopofBandannaFormation(contours),BandannaFormationexplorationtargetarea500600mdeep(darkgreenoutline),BandannaFormationexploration target areas 6001000m deep (light green outline), Boxvale SandstoneMember coals explorationtargetarea(lightblueoutline),ReidsDomeBedscoalstargets(darkblueoutline).



ReidsDomeBedsTarget

BoxvaleSandstoneMemberTarget



Figure19ExplorationTargetsFigure.Tenementarea(whiteoutline),withdepthtotopofBandannaFormation(contours). Left: Boxvale Sandstone Member coals exploration target 600700Mt (light blue area). Middle:BandannaFormationexploration target,500600mdeep350450Mt (darkgreenarea),6001000mdeep1,1001,300Mt(lightgreenoutline).Right:ReidsDomeBedscoals1,2001,400Mt(darkbluearea)



Appendix1:Maps

epc1318 geological report

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