PERTH (miningweekly.com) – Australian coal developer Cockatoo Coal has signed an exploration joint venture agreement with Japan Oil, Gas and Metals National Corporation (Jogmec) over its Dingo West project, in Queensland.
The project consists of two exploration permits covering 76 km2, and is located about 50 km from Cockatoo’s Baralaba mining complex. Cockatoo acquired the project in 2013 through the takeover of Blackwood Corporation.
Under the terms of the agreement with Jogmec, the Japanese firm would provide A$3.5-million over a three-year period for exploration on the Dingo West project, earning a 35% interest in the project.
Cockatoo told shareholders on Thursday that the joint exploration agreement provided Cockatoo with the funding for all planned exploration activities over the three years, including drilling, coal quality analysis and feasibility studies.
The funding also allowed Cockatoo to enhance its regional geological models.
First drilling activities at Dingo West were expected to start this quarter, with the drilling campaign to focus on shallow coal targets identified by two-dimensional seismic surveying, which was also planned for the fourth quarter of this year.