In a letter to shareholders, chairman David Barwick said the result established a solid platform to move MetroCoal’s projects through to the development stage.

“MetroCoal expects 2012 to be a year of significant growth, not only in our key projects but most importantly, for the Surat Basin coal region,” he said.

“Progress on the Surat Basin railway, further development of stage 2A of Wiggins Island, 3TL [tenement to terminal project] entering its feasibility phase, increased and more defined exploration in Bundi and Columboola, will continue to position MetroCoal as a looming coal producer.”

Barwick said the resource at Bundi is 1.81Bt with an indicated resource of 150.9 million tonnes, confirming MetroCoal’s growing confidence the project would move through to development at some point in the future.

With the onset of the rainy season, the 2011 drilling program has stopped for the year but will resume, weather permitting, in Q1 2012.

“Our 2012 exploration program will be focused on increasing our indicated resource and upgrading part of this to a measured status,” he said.

“In addition, the [environmental impact statement] process that commenced in 2011 will continue, with increased field activities aimed at gathering the data necessary for the base line studies that will underpin the environmental assessment.”

MetroCoal’s other key project is Columboola, for which the company’s joint venture partner is SinoCoal Resources, the Australian subsidiary of China Coal.

The exploration results for the Columboola JV project show a resource of nearly 1.3Bt at the inferred level.

Barwick said the maiden resource of 520Mt at Dalby West exceeded the target in MetroCoal’s December 2009 prospectus and highlighted the long-term potential for it to have multiple coal projects in the Surat Basin.

“MetroCoal is looking forward to further resource upgrades in 2012,” he said.

“With planned infrastructure for the Surat Basin continuing to gain momentum, MetroCoal operates under a strategy to be ready for the planned rail and port infrastructure, hence our desire to maintain the pace of our exploration and studies.”

The Surat Basin railway will join with the existing Moura rail line and connect to the future coal industry-owned Wiggins Island coal export terminal and the 3TL project in Gladstone.

Progress continues with 3TL nearing completion of a study being undertaken by leading consultancy firm, GHD, to complete all engineering and environmental advice for the project definition phase works.

The work is expected to be completed at the end of the first quarter of 2012.

3TL recently conducted presentations to a large number of coal producers to outline 3TL’s plans and ascertain interest in participating in the first stage of the coal port’s development.