(MENAFN- ProactiveInvestors - Australia) Allegiance Coal (ASX: AHQ) has been granted a Queensland coal tenement that has the potential to be a near term coal producing with low capital and operating costs.
Mt. Marrow (EPC 2374) is located about 15 kilometres west of Ipswich and covers 91 square kilometres.
The existing Jeebropilly Mine and Ebenezer Project are located to the south.
Mt. Marrow targets shallow open cut thermal coal in the Walloon Coal Measures.
Notably, the project is located close to existing rail infrastructure and is just 90 kilometres from the Port of Brisbane.
Additionally, coal in neighbouring projects is export quality thermal coal with low sulphur and nitrogen content.
The first works to be undertaken on EPC 2374 will involve detailed data search of existing geological data and mapping of coal measure strata exposed in road and rail cuttings within the area.
A detailed exploration program including drilling will then follow.
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