Hot Rock announces Maiden Geothermal Resource
THE BOURSE WHISPERER: Geothermal energy generation company, Hot Rock Limited has announced a maiden estimated resource at its 100%-owned Calerias geothermal project located 100 kilometres south-east of Santiago, Chile.
Having completed geological, geochemical and geophysical studies Hot Rock has estimated an inferred geothermal resource of 7400 petajoules has been estimated for the project.
Hot Rock said the estimated resource is equivalent to 185 megawatt electrical of electrical power generation over a period of 30 years, which it claims is sufficient to meet the needs of more than 250,000 Chilean households.
“This is a very significant milestone, positioning the Calerias project as our most advanced in the burgeoning, Chilean geothermal sector,” Hot Rock Limited executive chairman Dr Mark Elliott said in the company’s announcement to the Australian Securities Exchange.
“Chile is one of the best regions in which to advance geothermal projects today. The country has some of the best volcanic geology suited for geothermal energy in the world, yet the sector is still in its infancy.
“Chile also has a very stable, pro-development government providing excellent incentives to new geothermal companies.”
Hot Rock said that, as the world’s largest copper producer, Chile also has the highest power costs in South America.
This has led the country to have suffered power shortages for several years, due to increasing energy demand, which has created both the impetus and potential to establish geothermal power.
“We have had an on-the-ground presence in Chile since 2009,” Elliott continued.
“Our early mover advantage has allowed HRL to cherry pick several prime tenements, well before the recent pegging rush by the other major geothermal companies. HRL now holds the largest geothermal land package in Chile.”
Elliott labelled the Calerias project as being very prospective due to its location close to a heat providing volcanic centre.
He also pointed out the strategic location of the project, which is close to existing transmission grid inter-connection points with direct access to the large urban electricity market in Santiago.
It is also close to private customers such as the nearby El Teniente mine, the largest underground copper mine in the world.
“The El Teniente mine has a large future requirement for electricity, including power generated from renewable sources, required to meet obligations under recently revised government energy regulations,” Elliott said.
“With a maiden resource now defined, we will expedite activities at Calerias with a view to start drilling by early 2012, upgrading the reservoir to a Measured Geothermal Resource suitable to commence a bankable feasibility study.”
The Calerias resource area remains open with strong indications for a significant extension to the north-northeast.
Hot Rock is planning to undertake a further detailed geophysical survey by year-end, which it is confident, should substantially expand the currently declared resource assessment ahead of drilling.