Compilation of digital geophysical, remote sensing (Landsat) and GIS data has commenced in preparation for reconnaissance field programs and scout drilling. This work is expected to commence in late June 2007.

The project area is located some 40 kilometres south west of the town of Springsure and 40 kilometres west of X-Strata Coal's Rolleston Mine and the new heavy gauge railway constructed to service that mine.

Four seams have been intersected in the adjacent EPC 786 at Freitag Creek to the east, typically some 7.5 metres of net coal with cumulative coal of up to 10 metres. The equivalents of these coal seams are expected to continue into EPC 1001 to the west of EPC 786 and north into EPC 1084.

Departmental drilling in the general region has demonstrated that coal development within the Bandanna Formation occurred westward across the Springsure Shelf and confirmed the presence of shallow, thick, low ash coal seams with a coal rank similar to Rolleston coal. With the general persistence of the coal seams in the Bandanna Formation with little variation in coal quality, there are almost certainly coal seams to be delineated within the EPC and a strong potential to define suitable thermal coal resources.