The drilling agreement signals the first stage of MetroCoal’s two year programme of achieving an exploration target of between 2.5 billion tonnes and 3.5 billion tonnes by December 2011.
The drilling programme of 30 holes will be focussed on the Bundi, Norwood, Miles North and Miles East project areas, considered highly prospective for underground mining targets, which are also close to planned rail infrastructure.
Mike Brien, CEO of MetroCoal, said: “Depco have worked with MetroCoal previously and we are very pleased that the signing of this agreement is the next stage of our extensive exploration programme. We have already announced an initial resource in the Bundi project area and we look forward to continuing to build an extensive mining resource portfolio in addition to the UCG resource established in the Juandah project area last year.”
