Lochiel & Pidinga Coal Projects

Lochiel

EL 4670 Lochiel North

Southern Coal Holdings Ltd (SCH), a wholly owned subsidiary of WPG has an exploration licence in the Lochiel region 150 km north of Adelaide in South Australia. EL 4670 covers an area of 374 sq km and includes most of the Snowtown coal deposit, one of five deposits outlined within the large Northern Saint Vincent Basin. The coal is of Tertiary age and occurs within the Clinton Coal Measures, an unconsolidated, carbonaceous, sandy and clayey formation at depths that range between 30 and 150 metres. The coal seams are generally flat lying however dips of up to 6 degrees have been reported from one of the deposits. The coal is generally of low rank, high in moisture, sodium and sulphur and relatively low in ash.

Previous coal exploration comprised the drilling of 38 holes for a total of 3,334 metres within the area of the Lochiel North ELA. Significant coal seam intersections were made in 12 of these holes. Several seams are present within the Snowtown deposit with a maximum cumulative thickness of 8.4 m within a coal measures sequence that is up to 40 m thick. In places where the coal is best developed the upper seam is up to 6.8 m thick and is underlain by several thinner seams. The deposit has previously been estimated to have an Inferred resource of 270 million tonnes.

SCH recently completed a diamond drill hole in the centre of the tenement. Lignite seam samples were sent for testing at the Evergreen Energy test facility in Gillette, Wyoming.

Map Showing the Location of the SCH Lochiel North Tenement

Pidinga

EL 4631 Lake Pidinga

EL 4671 Talacootra

The WPG wholly owned subsidiary SCH is the holder of two contiguous exploration licences in the Lake Pidinga region of South Australia. ELs 4631 Lake Pidinga and 4671 Talacootra cover a combined area of 501 sq km and contain known lignite deposits of Middle Eocene age that occur in the Pidinga Formation along the eastern margin of the Eucla Basin and in adjacent palaeodrainage channels. Previous exploration has shown the lignite horizons are widespread but vary in thickness as a result of having been deposited on an undulating Pre-Cambrian basement. They contain coal seams that in places get up to 5 metres thick. Lignite occurs just below the surface in several of the salt lakes in the region.

The Lake Pidinga tenement also has known occurrences of potash in the form of near-surface alunite deposits.SCH is planning to follow up this significant potash potential with a program of vertical air-core drill holes.