Geothermal energy company KUth Energy (ASX: KEN) has revealed details of new data collected from its recently completed magnetotelluric and airborne magnetic surveys in Tasmania.
In a statement, Kuth said the results, combined with data from existing heat flow, MT and gravity surveys, supported the interpretation of a Naturally Fractured Hot Rock geothermal play beneath the Charlton-Lemont Inferred Geothermal Resource
Following the announcement, shares in KUth were up 3.1% to 16.5c.
The existence of a potentially fluid-bearing, permeable fracture zone in the high heat flow area offers a unique geothermal play in Tasmania - a target with the key characteristics of heat and fracture permeability and which hosts potential for the high fluid flow rates necessary to drive efficient energy production.
KUth managing director David McDonald said the company had also identified a number of other target areas within its tenement boundaries that it would continue to explore.
"Whilst we recognise that we have a lot more work to do, we are encouraged by the potential availability of a fluid-filled permeable fracture system in our target drilling location," Mr McDonald said.
"This discovery could offer the potential for high temperature and high flow rates – both of which are major drivers to power generation and efficiency."
KUth’s geothermal target in the Midlands area of Charlton-Lemont was initially scoped as a Hot Dry Rock target with known granites at depth.
The presence of potentially fluid-bearing fracture zones in this area, as indicated by the new MT and aeromagnetic data, now implies the company may be able to develop a geothermal project based on a naturally fractured reservoir that will not rely upon the costly process of reservoir stimulation.
According to Mr McDonald, the Charlton-Lemont Inferred Resource had now become a clear priority for the company and the next-stage of deep drilling would target the areas where he anticipates fracture zones can be intersected at a depth that would provide sufficient heat for power production.
"The next step, which will involve Proof of Concept, for which KUth has lodged an application with the Geothermal Drilling Program for a $7.0m grant, will require the drilling of two deep wells and circulation of fluids between those wells," he said.
"The company will seek to identify other strategic partners to scale up and add value to the business opportunity offered by this exciting exploration find."