Bowen Coking Coal has increased the resource estimate for its Isaac River project by more than 67 per cent to 8.7 million tonnes.
The company says the new total follows confirmation of the higher quality Vermont Upper seam, which accounts for 3.2 million tonnes of the resource estimate.
It says 8.35 million of the 8.7 million tonnes is classified as measured and indicated.
The Isaac River site lies east of Daunia mine in the Bowen Basin.
“The primary purpose of the company’s maiden drilling program at Isaac River was to test the expected existence of the Vermont Upper seam, which produces a better quality coking coal in the region,” managing director Gerhard Redelinghuys said.
“We have achieved that in intersecting the VU seam in all six drill holes, adding 3.2 million tonnes to the resource estimate as a result.
“The raw quality analysis received to date is very pleasing, and we now await the washability data, which we hope will confirm that the potential coal quality that may be produced at Isaac River is in fact far better than expected when compared to the historical data.
“In the process we have increased our confidence level of the resource estimate to more than 95 per cent in the measured and indicated categories.”
Xenith Consulting is managing the washability test and coal quality analysis with McMahon Coal Quality Resources through the SGS laboratory in Mackay. Results are expected early next month.