SOURCE: Waratah Coal Inc.

November 07, 2007 14:59 ET

Waratah Coal Announces Granting of EPC1056 in the Blair Athol Region

BRISBANE, AUSTRALIA and VANCOUVER, BC--(Marketwire - November 7, 2007) - Waratah Coal Inc. (TSX-V: WCI) is pleased to announce the granting of EPC1056 in the Blair Athol Region. The lease is valid for 5 years and comprises 215 sub-blocks covering a large area (about 900 sq. Km.) north and north-west of the town of Clermont -- with the Blair Athol and Wolfang Basins roughly at its centre, and the Miclere Basin in the northern portion.

The presence of large economic coal bodies is well documented in these basins and the scope of Waratah Coal's present exploration is to identify 'Blair Athol' or 'Wolfang' type Permian coal deposits that are economically viable to mine.

The Blair Athol mine, majority owned by Rio Tinto, produces 12mtpa of low ash, low sulphur, and high volatile thermal coal. Three coal seams are of interest with the largest measuring 29 metres.

For a map of the lease area, see the Waratah Coal web site at www.waratahcoal.com.

EPC 1056 General Locality Plan

Review of historic data including geological, geophysical, and drilling programs indicate that there are still large areas within the present lease that may have good potential for export thermal coal deposits.

Waratah Coal will initially concentrate on the Permian formations in the west, south-west, and north-west of the Wolfang Basin. Gravitational anomalies (low) have been noted as occurring in these areas and exploration will focus on these particular sectors.

A region of approximately 20 sq. Km has been identified for an initial exploratory program in an area where the Permian formations are exposed or where Cainozoic sediments are known overly the Permian. Relatively little previous exploration drilling has occurred to these large areas.

A scout exploration program is planned and some 25 drill holes have been strategically positioned to test the extent of potential coal deposits. Where relevant, a number of the coal seam intersections will be cored for analysis.

Infrastructure in the region is good: the Gregory and Peak Downs Highways cross the southern and western portions, respectively, of the EPC and the Gregory Development Road crosses through the central area (running north-west towards Charters Towers). These sealed roads provide access to second class gravel roads throughout the EPC. Additionally, the Clermont-Rockhampton railway passes though the south east corner of the EPC and is connected to the Blair Athol - Dalrymple Bay coal haulage railway line which passes through the central portion of the EPC; the total haulage length is 282km from Blair Athol to the Dalrymple Bay Coal Terminal at Hay Point.

To view the Waratah Coal Inc. Australian Thermal Coal Spot Price - Ex Newcastle chart, please click on the link provided: http://www.usetdas.com/maps/waratahcoal/waratahTHERMALCOALnov7.jpg

Barlow Jonker Index (BJI) January 1998 to present day.

The supply of seabourne traded thermal coal has tightened considerably in recent times with the spot prices for export quality thermal coal ex-Newcastle Australia hitting an all time record high last week. The Barlow Jonker Index (BJI), a measure of spot export thermal coal prices, ex-Newcastle NSW, hit US$79.85/tonnes on Thursday the 1st of November, 2007.

Waratah Coal Inc. has a substantial portfolio of Exploration Permits Coal (EPCs) located in and around some of Australia's major coal producing basins. Waratah Coal has the largest land holding in the as yet undeveloped Galilee Basin in Queensland Australia. Waratah recently announced inferred coal resources of 2.145 Billion tonnes at its premier Galilee Basin Project.

Investors and shareholders are encouraged to review the information relating to the company's projects on its website www.waratahcoal.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • For further information:

    Peter Lynch
    Waratah Coal President and CEO
    T: +61 7 3303 0692
    E-mail: Email Contact

    Henry Wright
    T: (604) 681-5755
    E-mail: Email Contact