Cockatoo has also reported a maiden inferred resource of 60Mt and indicated resources of 4Mt for its nearby Lochnivar project area.

“The interpreted continuity of the Baralaba Coal Measures over a distance in excess of 20km to the north of the current Baralaba mine enhances the viability of the company establishing itself as a major producer in the region,” Cockatoo said in a statement.

“When coupled with the development plans for the Baralaba south project, as well as upgrades to existing infrastructure, the strong future for the region is underlined.

“The company envisages future production from the Baralaba mine, Baralaba north and Baralaba south project areas, subject to rail and port upgrades, as a key step in the realisation of the company’s strategic goals.”

The focus of operations was targeted at its Baralaba mine and Baralaba North project areas, moving the project towards readiness for the commencement of mining, with water monitoring bores, lox line, structural and coal quality drilling being undertaken.

The company's Bowen Basin projects extend from the Dingo project in the north to the Baralaba south project in the south and have contiguous target areas covering an area of approximately 56,320 hectares with Permian age, Rangal Coal Measures sub-cropping over a strike length of approximately 92 km.

Production at the Baralaba mine has demonstrated that the seams of the Rangal Coal Measures in this area have PCI and thermal coal properties.

The seams mined at the Baralaba mine have been intersected in the Baralaba south, Baralaba north and Lochinvar target areas. The Lochinvar project is the northern continuation of the Baralaba north project.