() is preparing to start drilling at its Kilmain tenements in the Bowen Basin Queensland after completing seismic and magnetometer surveys.
Exploration activities are being undertaken using funding provided by Japan Oil Gas and Metals National Corporation (JOGMEC) under the Joint Exploration Agreement (JEA).
JOGMEC will provide up to $3 million of exploration expenditure to Allegiance over a 3 year period for the Kilmain Coal Project in three stages to earn up to a 40% economic interest in the Project and has the right to assign that interest to a Japanese nominee company in the future.
Allegiance has completed 7.7 kilometres of seismic surveys within the southern part of the Kilmain Tenements to provide information on the structure and continuity of the seams in the Rangal Coal Measures.
Initial results are that the seams are continuous and with little or no structural discontinuities.
It has also completed 21 kilometres of ground magnetometer surveys to detect and define the limits of a predicted basalt flow in the south eastern area of the tenements.
These successfully defined the extent of the basalt showing limited encroachment into the tenement.
The company has selected up to 10 potential drill sites and has commenced mobilisation following cultural heritage clearance of the potential drill sites.
Previous drilling by Allegiance identified coal seams at depth and a working seam section of 3.1 metres within the Castor/Pollux Seams.
Additional seismic surveys and drilling are now planned for other areas within the Kilmain project area.
The Kilmain Project (EPC 1298 and EPC 1917) covers 56 square kilometres and is located 85 kilometres southeast of Emerald and 12 kilometres west of the Rolleston rail line.
Kilmain’s eastern boundary adjoins the BMA Togara South Project while the western boundary adjoins ’s () Springsure Creek Project.
The Project has potential for an opencut/underground deposit of coking/PCI/thermal coal within the
Rangal Coal Measures and has an exploration target of 100 million to 200 million tonnes of coal.
The company seeks to develop Kilmain into a viable operation producing low ash high quality coal for power station and/or steel mill customers.
Allegiance is capitalised at just $4.4 million.
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