Blackham to commence drilling at
Scaddan Energy Project in WA
Australian energy company Blackham Resources Limited (ASX: BLK)
(“Blackham†or “the companyâ€ÂÂÂÂÂ) plans to undertake an initial drilling program at
its Scaddan Energy Project, near in Esperance in Western Australia, after
being granted a permit of work by the Department of Industry and Resources.
The Scaddan Energy Project is located approximately 60 kilometres north of
the town and port of Esperance and seven (7) kilometres east of the
Esperance to Kalgoorlie highway, gas pipeline and railway line.
Blackham has already secured landowner approvals for access to the drilling
sites for this initial programme, which is currently scheduled to commence in
October/November.
The Company proposes 21 diamond holes and 30 air core holes as an initial
programme, with the drilling designed to obtain fresh lignite samples for
laboratory and bench scale testing, allow for an upgrading of the resource in
selected areas from an indicated to a measured resource category.
The fresh lignite samples obtained from the drilling will be used for resource
definition and test work for the selection of preferred processing technologies
best suited to the Scaddan lignite deposit. In addition, the proposed drilling
programme will also allow for furthering geotechnical and hydrological
assessment to ensure a prefeasibility level of assessment.
The new lignite samples will also be used to assess low capital intensive
opportunities for use of Scaddan lignite for early cash flow opportunities by the
Company.
Blackham and its consultants are currently finalising a CTL Scoping Study for
a potential Coal to Liquids (CTL) operation at the Scaddan Energy Project,
assessing the potential for an initial drying, gasification and synfuel plant of
15,000 – 30,000 bbl per day of mostly diesel production. Results of this study
expected to be released in the near future.
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Based on a potential 30,000 bbl per day CTL operation Blackham’s current
resource could provide feedstock in excess of 40 years. With additional coal
exploration potential at Scaddan East, Scaddan North and Zanthus, Blackham
is well positioned to increase its resources in the region.
Blackham is evaluating the development of the Scaddan and Zanthus lignite
projects into one of Australia’s premier CTL operations, as well as other value
adding operations. A CTL facility combined with clean coal technologies has
the potential to produce a high quality diesel and other high value import
replacement products for Western Australia.
The Scaddan Energy Project is a joint venture between Blackham and
Wesfarmers Premier Coal Limited who have 70% and 30% contributing
interests respectively. The joint venture covers the exploration, mining and
downstream processing associated with the development of the Scaddan
Energy Project. Under the Agreement Premier Coal has agreed to provide
Blackham with all exploration, commercial and economic data regarding the
Project and technological information regarding CTL.
