Bowen Coking Coal says drilling at its Broadmeadow East project has shown that a key coal seam extends beyond the ground covered in the existing measured resource.
The company has identified two additional targets at the coking coal project, near Moranbah in the Bowen Basin.
Bowen Coking Coal bought Broadmeadow East from Peabody Energy last year for $1 million cash plus royalties.
It has flagged plans to start mining by the end of 2021, creating up to 200 ongoing jobs.
A recently completed coal quality drilling program has confirmed that the Leichhardt seam extends into the area south of the existing measured resource area, which sits within a granted mining lease.
Two drill holes in this previously unexplored area encountered the Leichhardt seam at depths of 52m and 62m respectively, the company said.
It thickened to a 4m seam in this area.
“Broadmeadow East is the most advanced project in our portfolio of near‐term coking coal projects,” Bowen Coking Coal managing director and chief executive officer Gerhard Redelinghuys said.
“Our recent drilling campaign forms an important part of our work to get it ready for production as soon as possible.
“Further coal quality analysis will be completed on a ply‐by‐ply basis, however initial indications from the raw coal data support our view that the lower section of the Leichhardt seam contains better coking properties and a higher yield which will enable us to tailor our mining method and optimise the quality of coking coal we produce.”
Scout drilling at the site also intersected the Vermont Lower seam in a previously unexplored area. Raw coal quality analysis for the Vermont Lower and Girrah seams 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.