The study focused on investigating two alternative mining scenarios for the project, an open cut mine or an underground mine. It also identified opportunities for improving value at Grosvenor West.

Carabella said it would identify the opportunities in a concept study to be released in December, and would then progress with a bankable feasibility study early next year based on the study’s results.

Stage one drilling at Grosvenor is now 50% complete, with 60% of planned chip holes completed and 45% of cores taken.

Carabella said it had taken a new interest in the project’s Exmoor 2 seam, following a second 1.9 metre intersection in the southern section of the exploration area.

Carabella interim executive chairman Andrew Amer said while the project had encountered some setbacks, drilling was now making headway.

“While rig availability and weather conditions have impacted exploration progress during the first half of the year, we are pleased with the progress made on drilling since July 2011,” he said.

Amer said a key goal for 2012 would be to define additional resource tonnages within the broader Mabbin Creek area.

Carabella was recently rocked by the departure of its managing director Mitch Jakeman who walked out of the emerging Queensland producer due to “irreconcilable differences” over management style.

The board intends to appoint at least one additional non-executive director and the process of identifying a candidate with experience in the mining sector is underway.