The ore reserve comprises premium quality semi soft coking coal and thermal coal products. In particular, the Whynot seam is a low ash semi soft coking coal which can be sold without being washed.
This has the potential to defer this capital requirement at the commencement of a mining operation, NuCoal managing director Glen Lewis said.
“The completion of the maiden reserve statement is another substantial milestone for the Doyles Creek Underground Coal Project and Training Mine facility as it further supports the economic viability of the project,” he said.
“As further drilling and studies are undertaken, we will continue to convert more of the 512Mt of Resources across the five coal seams we have identified in the tenement into reserves which will underpin the significant life of the project.”
The underground coal mine is forecast to be a low operating cost project on a global basis with an operating life of more than 30 years.
Further work will be carried out to convert an increasing proportion of the remainder of the 512Mt of measured, indicated and inferred resources to progressively upgrade ore reserves, Lewis said.
