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Additional Information

Market:	ASX
Sector:	Coal
EPIC:	MTE
Latest Price:	0.31 (-4.69% )
52-week High:	0.97
52-week Low:	0.28
Market Cap:	31.15M

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MetroCoal

MetroCoal (ASX: MTE) is an emerging Australian coal-based energy company focused on projects in the Surat Basin in South East Queensland.

MetroCoal boosts Bundi thermal coal resource by 30% to 381 million tonnes

Tuesday, October 19, 2010

MetroCoal (ASX: MTE) has reported a 30% increase in the JORC Inferred Resource of the Bundi Project in the Surat Basin, South East Queensland, from 292 to 381 million tonnes of thermal coal.

In addition, the Surat Basin thermal coal resource has increased to 709Mt tonnes of Underground and Underground Coal Gasification (UCG).

Drilling is confirming down dip continuity and correlation of Macalister Seams in the Wandoan District.

The Bundi Project area, within the company's EPCs 1164 & 1251 Wandoan West, is the down dip extension of the Elimatta and Xstrata Ltd's (LON: XTA) Wandoan mining project areas.

Exploration planning is underway to increase the borehole density within the Bundi resource.

Mike O’Brien, chief executive officer, said although the primary focus remains on the Macalister Upper seam, it is becoming apparent that the Kogan and Macalister Lower Seams are correlatable in some areas and there may be scope to include these additional seams in the resource through the planned, closer spaced drilling.

The next drilling program for the Bundi area is planned to increase the resource confidence to an Indicated category via a staged process commencing in 2011.

MetroCoal holds extensive coal exploration tenements in the Surat Coal Basin covering approximately 4,000km2.

MetroCoal has an exploration target of between 2.5 and 3.5 billion tonnes with a JORC Code classification of “inferred” or better, by December 2011 for evaluation for conventional underground coal mining and where more suited, Underground Coal Gasification.

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