The Mount Penrhyn coal deposit (EL 3336) lies at Robins Rise Opal Field near Coober Pedy. WPG previously executed an option agreement to acquire two exploration licences (EL 3336 and EL 3436) otherwise known as Lake Woorong – which lies immediately to the west of Robins Rise, from Stellar Resources Limited.

If WPG’s exploration defines a non coal or iron ore mineral resource classified and reported in accordance with the JORC Code then Stellar has the right to acquire a 49% joint venture interest in that non coal or iron ore deposit by paying WPG an amount equal to three times the amount spent by WPG on that exploration.

In addition to the known coal deposit, the two tenements subject to the option agreement also have potential for the discovery of iron ore deposits, iron oxide copper gold deposits, and uranium.

Western Plains Resources has now began drilling the Mount Penrhyn coal project at the Robin’s Rise Opal Field in South Australia

Western Plains Resources Limited announced this week that drilling had commenced at the Mount Penrhyn coal project area some 40 kilometres south west of Coober Pedy in South Australia at the weekend.

This drawing also shows the locations of WPG’s proposed haul road, accommodation village and rail loader at Wirrida. Penrhyn is 20 kilometres from the rail loader.

The Mount Penrhyn deposit has been tested by limited drilling only in the past. It was discovered in 1995 as part of the South Australian Exploration Initiative and was subsequently explored by the SASE joint venture.

The deposit lies within the Arckaringa Basin and the quality of the sub-bituminous coal is reported to be generally similar to other Arckaringa Basin coals, such as Lake Phillipson.

The Penrhyn trough is 25 kilometres long by 5 kilometres wide and drilling by PIRSA (formerly known as MESA) has shown that the deposit contains up to four major and several minor coal seams that in places make up a cumulative thickness of up to 15.5 metres.

The relatively flat lying coal seams lie at depths ranging between 70 and 130 metres beneath a 60 metre thick sequence of Eromanga Basin sediments and surficial cover.

The exploration target at Mount Penrhyn is in the range from 250 to 350 million tonnes of coal.

This exploration target is based on the currently available drill hole and coal quality data and is conceptual in nature.

There has been insufficient exploration to define a coal resource, and it is uncertain if further exploration will result in the determination of a coal resource.

Past holes have focussed on defining the coal basin along its length, but there have been no holes drilled to test its continuity across the basin which is the objective of the current program.

EL 3336 that contains Penrhyn is not thought to be in a high investment risk part of the Woomera Prohibited Area, though confirmation of this awaits the release of the Commonwealth’s whole of government review of exploration and mining inside the WPA.  WPG does not know when this will be released.

There are other potential applications, including coal for a mine mouth power station to add value to iron ore from the Hawks Nest magnetite deposits through the production and marketing of a merchant pig iron.