(MENAFN - ProactiveInvestors - Australia) Cuesta Coal (ASX:CQC) has completed its Yellow Jacket work program for this year having drilled 23 open PCD holes and 5 partially cored holes totalling 4,229 metres.
All the holes were geophysically logged and intersected coal seams as expected in the target area.
These have a physical appearance similar to that of the lower seams in the Betts Creek Bed Coal Measures though this will be verified by coal analysis.
It has also identified a new target area, "Karura" at its 90% owned EPC 1957 adjoining the Yellow Jacket project. Karura has similar geological traits to Yellow Jacket and lies directly south of the proposed rail corridor for Adani's Carmichael Project.
Drilling in the Yellow Jacket encountered similar coal seams as found in the main drilled area, providing scope for further drilling. This provides significant exploration upside potential to the Yellow Jacket Project.
An initial exploration target of 200 to 1000 million tonnes has been identified with a maiden resource estimate for Yellow Jacket targeted for March 2013.
A geological model of the drill data will be completed over the coming months with a target completion date of March 2013.
Core samples from partially cored holes are being sent to the lab for analysis and input into the geological model for maiden resource definition.
In addition to completing the 2012 drilling campaign in Yellow Jacket, Cuesta has also confirmed a target area of up to 50 square kilometres immediately south of the proposed rail corridor for the Adani project.
Historical regional seismic lines have been investigated and they indicate syncline structures present in both Yellow Jacket and Karura that have the potential to preserve the Permian coal measures of the Betts Creek Beds east of the known sub crop.
Cuesta has a diverse portfolio of thermal and coking coal exploration prospects within the Bowen, Surat and Galilee basins, with the company's core projects spread over 11,000 square kilometres.
The Eastern Galilee Project covers a total area of approximately 4,000 square kilometres with two granted tenements, five tenement applications, including two applications under a 3 million joint venture.