MORETON ENERGY COAL PROSPECTS

Under a farm-in agreement with Moreton Energy Pty Limited, Lodestone has the right to earn 50% of three tenements in the Clarence-Moreton Basin containing identified Walloon Coal Measures that remain relatively under-explored. All three tenements are strategically located close to railway infrastructure connected with Brisbane, Newcastle and Sydney. The region also has good road access.

Veresdale Scrub (EPC 1302)

Prior exploration between 1978 and 1992 by New Hope Corporation identified an insitu tonnage of 28.2 million tonnes of thermal coal outcropping on the eastern limb of the Logan Sub-Basin at Veresdale Scrub from a depth of 12m to 100m. It is estimated that approximately 60% of this deposit lies within EPC 1302.

Lodestone is currently re-evaluating the eighty six drill holes completed, some of which were geophysically logged, and the eight holes which were partially cored. An exploration program is underway to upgrade the tonnage to JORC status and extend the tonnage both along strike and down-dip.

The Veresdale Scrub area itself is now an area of relatively high population density, and hosts a large number of small acreage blocks adjacent to Beaudesert. While exploration in the Veresdale Scrub area may be difficult, there is potential for a small ‘surgical’ coal extraction operation, subject to feasibility studies relevant approvals.

Strathnaver Colliery/Bromelton Prospect (EPC 1299)

Bromelton is located on the western flank of the Logan Sub-Basin where the Walloon Coal Measures crop out, possibly at shallow depths.

New Hope Coal Australia (NHCA) drilled a few holes in the area and intersected a 3.5m thick, banded seam that was thought to dip gently to the east. Pacific Coal drilled one hole along the southern boundary of the EPC to a depth of 166m and intersected 2.2m of coal and mudstone (estimate 65% coal) at 12m and 8.8m of coal and mudstone (estimate 40% coal) at 52m.

Although EPC1299 is largely unexplored, the EPC has potential to host coal resources at shallow depth in an area that has been set aside as an industrial area and on which some industrial development has taken place.

Albert River Prospect (EPC1313)

The Walloon Coal Measures are known to crop out in the headwaters of the Albert River in the SE corner of EPC 1313 where they occupy an erosional window in the volcanic cover at the foot of the Lamington Ranges.