An additional inferred coal resource of 38.2Mt was also established; representing a 271% increase over the previously reported 10.3Mt inferred resource.

The analysis conducted by mining consultant Norwest also identified potential underground minable coal in the range of 60-80Mt which is being investigated to determine if it could meet NI 43-101 compliance standards.

Colonial president and chief executive David Austin said the report was a major step forward for the company.

“The results are in line with our expectations and significantly increase the asset value of the property,” he said.

“We have commenced this year’s exploration program and environmental baseline studies and data collections are ongoing.”

Huguenot covers a total area of 7,592 hectares in northeast BC and consists of one contiguous block of 13 coal licenses and two coal license applications that encompass previously explored deposits.

Earlier this year, Colonial budgeted $2.5-3 million for exploration of the tenement.