Bowen Coking Coal has reported positive results from initial quality tests on coal from the Hillalong South project, near Hail Creek mine in Bowen Basin.
The company said raw coal quality results from samples taken in 2019 were very encouraging and in line with its expectations. .
Exploration expenditure for Hillalong is covered under a farm‐in agreement where major Japanese corporation Sumitomo will spend up to $7.5 million to earn up to 20 per cent of the project.
The 2019 Hillalong South exploration program confirmed the presence of the Elphinstone and Hynds coal seams between 116m and 167m deep, with an average thickness of 5.6m for the Elphinstone seam and 2.5m for the Hynds Upper seam.
Bowen Coking Coal said raw coal analysis was carried out on seam intersections for all four cored holes.
Fast float results indicated the potential to wash a primary, high quality coking coal from both the Elphinstone and Hynds Upper seams, it said.
Full washability tests are underway for all the cores, with results expected in the coming weeks.