Australia: Southern Gold to define geothermal resource
Southern Gold has started to work towards establishing a Geothermal Resource estimate on its tenement in South Australia. The tenement forms part of the Torrens Geothermal Project.
Reported by Proactive Investors, Southern Gold (ASX:SAU) “as commenced work towards establishing a Geothermal Resource estimate within GEL 302 in South Australia. The tenement forms part of the Torrens Geothermal Project which comprises 4 GELS and 18 GELAs and covers an area of 10,000km2 over one of Australia’s largest geothermal hotspots.
Independent experts and industry consultant Hot Dry Rocks Pty Ltd (“HDR”) has been contracted to complete a geothermal resource assessment over GEL 302. The resource reported by HDR will be compliant with the Australian Code for Reporting of Exploration Results, Geothermal Resources and Geothermal Reserves (2008 edition).
High heat flows averaging 94mW/m2 are already established from temperatures and thermal conductivities for two of Southern Gold’s mineral exploration holes drilled to 1,000m depth in GEL 302.
HDR has already confirmed that the heat flows measured by Southern Gold provide an encouraging basis to progress investigations towards the commercial development of an Engineered Geothermal System (EGS).
Southern Gold has one of the largest strategic geothermal land holdings in an area that hosts growing energy markets including the world?class Olympic Dam and Prominent Hill mines. The proposed Olympic Dam expansion is forecast to consume close to half of the State’s power supply.
The Torrens Geothermal Project is also strategically located to straddle the 275Kv and 132Kv power lines that connect Olympic Dam and Prominent Hill mines to the national power grid at Port Augusta.
The potential economics of the Torrens Geothermal Project are built around the proximity of commercially viable insulated hot rocks to high voltage power distribution infrastructure and nearby market demand.
The excellent infrastructure combined with reliable energy supplies contributes to the continued and sustained project development and production economics of the region.
Southern Gold’s goal is to establish a commercially viable EGS in the area.
Southern Gold is considering financing and management alternatives for the future development of the Torrens Geothermal Project that will maximise its value to Southern Gold.”
Source: Proactive Investors