With a bankable feasibility study underway, Coalworks aims to start producing low sulphur sub-bituminous thermal coal in an open cut operation from late 2012.

“Wood Mackenzie’s deep knowledge of the Asia-Pacific coal industry and coal supply dynamics places them in a unique position to advise Coalworks on the best marketing and pricing strategies for the Oaklands mine development process,” Coalworks managing director and CEO Andrew Firek said.

“The results of their study will feed directly into the BFS and provide the necessary commercial insights.

“Oaklands’ product coal will compete in the Asian market so projected income streams and an understanding of the placement of the product in the coal market, relative to its competitors, are critical components in finalising the BFS.”

Exploration results announced in May had a best intersection of 16.4m in the Lane Shaft seam of the project.

The best intersection started at a depth of 120m and included 12.2m of interval thickness at a calorific value of 5236 kilocalories per kilogram.

Shares in Coalworks are unchanged, closing at 29.5c.