Queensland
Due particularly to its high level of mining activity and promising geothermal resource potential in certain areas, we have identified Queensland as a target for KUTh Energy's continued exploration and project development activities.
EPG 7 and EPG 9 were granted in January 2010. Each tenement covers an area of approximately 600km2. Work will now commence on the detailed data compilation and analysis required for the planning of reconaissance exploration programs on these tenements. These Exploration Permits for Geothermal (EPG), EPG 7 and EPG 9, are characterised as follows:
Jackin Creek- EPG7
EPG 7 is located at Jackin Creek, near Weipa on the Cape York penninsula. Jackin Creek is capped by a hot artesian/sub artesian water system in Mesozoic rocks overlying an altered mineralised granite basement. Temperature gradients in the Mesozoic section are ~50°C/km. The area lies adjacent to the previous Reserved Area 315 (RA315) containing bauxite. Chalco, a Chinese aluminium company, recently successfully bid for RA315 which is expected to form the basis for a $3b investment in Queensland. Bauxite is also mined at Weipa to the north.
Approximately 1km of Mesozoic sediments overlie an altered granite basement. The temperature gradient is ~50°C/km in the sediments as measured in petroleum wells, e.g. Jackin Creek #1. Groundwater is artesian and hot.
Eveleigh- EPG9
EPG 9 is located at Eveleigh, to the north of Einasleigh. This area lies immediately south of Tallaroo Hot Springs, one of the hottest springs in North Queensland at 70°C. The general area contains volcanics as young as 50,000 years with a major centre at Mount Surprise to the east of the permit area. Other areas in North Queensland have volcanics as young as 10,000 years. The geology is complex with at least two possible heat sources but as a starting model it is assumed that the thermal activity is related to the young volcanics. The hot springs seem to be associated with the north western margin of a caldera some 30km across extending towards Mt Surprise.
Queensland tenement locations and prospective geothermal target.
Hot Artesian bore at Weipa, 4 Aug 1958
National Archives of Australia: A1200, L26746
Following KUTh Energy being awarded preferred tenderer status and our subsequent progress in more detailed project investigation and initiation of landowner consultation, the Queensland Government announced a process to develop new legislation to administer geothermal exploration and development. KUTh Energy has provided input to this process, and we are expecting that the new framework will be released mid-2009. We will examine the opportunity presented by this key mechanism and will use it to inform our strategy moving forward.
KUTh Energy is continuing in its identification and early stage investigations of potential new project areas in Queensland. A key consideration at this point is not only the targeting of a potentially high quality and large geothermal resource, but also the location of demand in both on- and off-grid applications.