The updated figure – based on 186 drill holes and over 33,500 acres of controlled coal leases after recently securing new strategic leases – represents a nearly 54% increase from the maiden coal resource estimate, with measured and indicated coal resources now representing 98% of total coal resources for Buck Creek.

“This updated estimate confirms our Buck Creek No 1 mine as one of the largest pre-development coal operations in the Western Kentucky region of the Illinois Coal Basin,” Paringa CEO David Gay said yesterday.

“The updated estimate together with the new strategic coal leases has allowed us to expand our contiguous resource base that now extends over 21km and will allow us to significantly increase the PFS mine plan for Buck Creek No 1 mine.”

Gay added that the company would continue to acquire coal leases to expand the resource base.

The updated resource incorporates results from an additional four air rotary holes and 14 diamond core holes that Paringa drilled from 2013 to 2014, five Kentucky Geological Survey core holes and an additional 8500 acres of mineral property which Paringa has leased, since the maiden coal resource estimate was released in November 2013.

Drilling has confirmed the Western Kentucky No 9 seam to demonstrate lateral stratigraphic and coal quality continuity, the company said. The resource is contained entirely within that one coal seam, which is one of the most prolific coal seams produced in the US and has an average thickness of 1.16m across the property.

Paringa says this compares favourably to many operations in the immediate vicinity.

Buck Creek is one of the few remaining contiguous high-quality thermal coal projects within the WK No 9 seam that is not controlled by one of the major US coal companies and offers one of the highest quality, highest heating value products in the Illinois Coal Basin, Paringa says.