Bowen Coking Coal has mobilised a drilling team to conduct a coal quality and groundwater monitoring campaign at its Broadmeadow East project, near Moranbah.
The company completed acquisition of the coking coal project from Peabody Energy in September for $1 million cash plus royalties of up to $1.5 million.
It has flagged plans to start mining by the end of 2021, creating up to 200 ongoing jobs.
Bowen Coking Coal said the drill program would obtain six core samples for detailed coal quality analysis on a ply-by-ply basis.
This would allow it to optimise the mine plan for Broadmeadow East as well as providing valuable information for marketing studies and potential off-take agreements.
The program will also include up to two scout drill holes to test for potential resource extensions and other seam intersections in a previously unexplored area.
Up to six groundwater monitoring drill holes and one geotechnical drill hole are also planned to support environmental studies under the current EA amendment.
Bowen Coking Coal has engaged Xenith Consulting to conduct mine planning and design work.
Nitro Solutions is managing the environmental approval processes while the final transfer of title is underway.
Broadmeadow East, with a JORC resource of 33 million tonnes, is about 30km north-west of Bowen Coking Coal’s Isaac River project and 45km south of the company’s Hillalong coking coal tenements.
Bowen Coking Coal lodged its Environmental Authority application for the Isaac River project, located beside BMA’s Daunia mine, in October.
And Japanese conglomerate Sumitomo last week confirmed it would proceed with Phase 2 of a joint venture agreement on Hillalong.