The Ferndale project is a joint venture agreement with Nathan Tinkler-owned company Boardwalk.

Boardwalk will earn 50% of the Ferndale project for spending up to $25 million on a bankable feasibility study for open cut mining, along with a prefeasibility study on underground mining development.

To date, drilling results have confirmed the potential for an open cut mine within the shallow Newcastle coal measures and underground potential within the upper and middle Wittingham coal measures of the tenement.

In a recent investor presentation, Coalworks said the mine would be in production in 2016, assuming the prefeasibility study was completed at the end of 2012, enabling the company to submit an environmental impact statement.

Meanwhile, Coalworks shortened the start-up time for its Vickery South project by a year, anticipating it will be in production by 2014.

The company hopes to export up to 3 million tonnes per annum of semi-soft and thermal coal from its Vickery South project in the NSW Gunnedah Basin over a 16-year mine life.

Geological modelling undertaken at Vickery South during the financial year upgraded the JORC-compliant resource to 58.5Mt while a review of a completed prefeasibility study on the project confirmed the 3Mtpa target.

A bankable feasibility study for the project, which is being undertaken by the project’s JV partner Itochu Corporation, is expected to be completed by next year.

Mitchell said overall Coalworks had a strong board and cash position and was able to substantially increase the value of its tenements throughout the year.

A recent coup at the company, engineered by Tinkler, saw two of Coalwork’s directors ousted, while five out of six motions were defeated.