Once the final land clearances are obtained, the company will ramp up to commence exploration drilling at the project.
The EPC 2327 grant, which is the last of three tenures to be granted in the Consuelo project, marks a key step ahead and is likely to host some of the shallowest coal seams in the project.
According to the company, the project will focus on a semi-soft coking and thermal coal play in the Bowen Basin near Glencore Xstrata PLC’s Rollest on mine and the Blackwater Rail System.
International Coal and Coal Face Resources will developed the EPC 2327, 2318 and 2332 tenements while International Coal acquires a 20% interest in the tenements upon grant and assignment and the ability to earn up to a 71% interest in the project, as part of an agreement signed earlier.
International Coal chief executive officer Glenn Simpson said the company is working to finalize conduct and compensation agreements and cultural heritage clearances for the area and start drilling preparations.
"We expect to intersect coal seams at mineable depths in the Bandanna Formation – the same formation that hosts coal produced from the Glencore Xstrata Rolleston Mine," Simpson added.
"We are looking to establish a JORC Inferred Resource and to test the coal quality."
