The Brisbane-based company is investigating developing the initial inferred 14 million tonnes of coking coal as a 1-2 million tonne per annum opencut mine.

 

The study, being undertaken by the Minserve Group, includes geological modelling of the deposit, formulation of a mine plan, and examination of the key issues related to producing an export product. The study is also looking at available transport, which includes combined truck and rail options.

 

The company also began Phase 2 of the drilling program in the northern area of the Ashford project. Drilling to date has indicated the presence of additional multi-seam intersections but further drilling would be needed to confirm seam structure and coal quality, the company said.

 

“While significant coal horizon thicknesses are apparent, some intersections are banded and separated by non-carbonaceous Permian sediment,” it said.

 

The company also carried out a short drilling program at the Elimatta project near Wandoan, Queensland. Wet weather curtailed the program but each of the completed holes intersected multiple coal horizons, Northern Energy said.

 

Nine of the 11 reverse circulation drillholes have been geophysically logged to define a target of low sulphur and low nitrogen thermal coal.