Two Depco drilling rigs were mobilized in the first week of April to commence the 2010 drilling program. Initial drilling was within the Bundi Project area at the western end of EPC 1164 Wandoan West.

Eight of the planned 30 holes have been completed with a total of 1,414mt drilled. Three of the holes have been cored through the MU horizon, and coal quality and geotechnical samples have been collected.

Wire line log interpretations confirm the targeted MU horizon has been intersected in all holes at depths close to those estimated using the existing geological model. This result is positive to confirming the continuity of Macalister seam package and supports the MetroCoal’s view of the MU seam as a long wall mining target seam.

Total MU seam package varies in thickness from 3.5mt to 6mt. Additional core drilling is being conducted in this exploration program to ensure sufficient coal quality is available to meet JORC code resource estimation requirements. Washability tests will also be carried out. Geotechnical samples from roof and floor strata will establish a data base for future mining studies, the company said.

MetroCoal is an Australian coal based energy company focused on its 100% owned coal projects in the Surat basin in South East Queensland. Last month, the company signed a $30m joint venture agreement with a subsidiary of China National Coal Group, which is pending final approval from Chinese government regulators.