Aviva boosts Coolimba project reserves

Perth-based energy developer Aviva Corporation Ltd said the purchase of an additional mining lease could boost coal reserves at its Coolimba power station by up to 10 per cent.

Aviva is targeting a further 4 million tonnes of resource from the new lease it bought from Australia Gold Resources Pty Ltd for $100,000 plus a production royalty on all minerals.

The tenement is known to host mineral sands and coal mineralisation.

A drill program over the new tenement is being planned for the December quarter.

Last week, Aviva entered into a joint venture with New York-listed The AES Corporation to develop both the Mid West power station and the coal mine, set to cost around $1 billion.

The project will supply electricity directly into the South West Interconnected System, particularly to the northern end which includes several big resources projects around Geraldton.