Washability test work for both the seams intersected indicated that high yields of low-ash, low-phosphorous coal with attractive metallurgical properties were likely from the deposit.

The clean coal from the primary ‘nine-foot’ seam had 3.5% ash, 1.36% sulfur and a calorific value of 7850Kcal/kg.

“While it is early days in optimizing the washing parameters, these test results indicate the potential for Lochinvar coal to be an attractive low ash metallurgical coal, ideal for sale into the UK and European markets,” NAE managing director Gary Fietz said.

Fietz said the 20-hole program would lead to a JORC resource estimate over the course of the year.

The company declared an exploration target of 330-410 million tons of metallurgical coal when it clinched the underground licence last June in the United Kingdom’s all-but-forgotten Canonbie coalfield.

A historic bore hole at Lochinvar intersected seven coal seams of 272-346m, including the primary target seam at 310m.

The results supported raw coal test work performed earlier in the year and showed a reduced sulfur value after washing.

NAE added that it was in preliminary discussions with potential UK customers who have indicated the sulfur levels within the tested Lochinvar coal are within their desirable specifications for coal supply.

Further, based on the washability tests, there was the potential to make a saleable middlings product, NAE said, adding that the Gieseler maximum fluidity of the coal was also high and reflective of the high proportion of reactive macerals within it.

These results, in combination with the low-ash content, suggest that the coal could be a suitable “sweetener” for blending with coals with higher ash and inert maceral content.

Lochinvar covers 67.5km² (6752 hectares) and is served by extensive infrastructure, including a railway line within 1km providing access to multiple ports and steelworks.