EPC 2527 (at top) and EPC 2528

January 30, 2013

Mining Projects Group Limited has been granted a permit to explore for coal on one of the two prospective exploration permits for coal (EPC) it holds in the South Burnett.

In a statement to the ASX today, Mining Projects Group said a permit had been granted for EPC 2527 and it was confident a permit would be granted for the adjoining EPC 2528.

“EPC 2528 remains in the process of being granted but the company does not anticipate any impediments to its grant,” the statement said.

The applications, which are collectively known as the Delcarmen Coal Project – a reference to Delcarmen Energy Limited which Mining Groups purchased for $1 million in July last year – cover a combined area of 1030sq km straddling the Bunya and D’Aguilar highways.

Mining Groups also told the ASX today that an independent geological report had established an exploration “target” of between 30 and 140 million tonnes “of which up to 60 million tonnes has been identified as potentially semi-soft coking coal”.

It says previous exploration in the area 35 years ago was “neither extensive nor intensive enough” to rule out the existence of economic coal and further exploration was warranted.

However Mining Groups noted the tonnages quoted were “conceptual in nature”.

“An initial exploration plan will be based on rotary chip holes, followed by downhole logging using the standard geophysical tools … this information will allow the correlation of the seams, the precise thickness of the coal seams and can indicate the relative quality of the coal seams,” the ASX statement continued.

“A total of seventeen holes have been recommended with three holes in the south-west corner of the EPC designed to contribute to a possible inferred resource tonnage after databasing and modelling.

“Several holes are planned for the north-east of the EPC to establish coal intersections recorded in registered water bores.”

Mining Groups said it would wait until the permit for EPC 2528 was granted to allow for an “inclusive program” over the entire project area.

A string of other companies also hold tenements over parts of the South Burnett, including Cival and Mining Resources (EPC 2462, 2463 and 2501), Coal Face Resources (EPC 2536 and 2534), Sara Bella Energy (EPC 2566), SE Qld Energy (EPC 882), Swancove Enterprises (EPC 1921 and 1181) and TEC Coal (EPC 1301 and 1670).

Mining Projects Group has extensive holdings in South Africa.