The resource upgrade was made to the P1 seam of the project and was based on modelling work from drilling in 2008 and 2010.
Of the 381 geophysically logged holes, only 68 have been analysed for raw coal quality and this resulted in the resource upgrade.
Rey expects to release a reserve statement based on the measured and indicated resources this quarter.
The P1 seam hosts 305.8Mt of total resources alone, including 78.5Mt in the indicated category.
The definitive feasibility study for the project remains on track for completion in June.
Last year the prefeasibility study confirmed the best approach was an initial 2Mt per annum trench highwall mining operation.
After being washed onsite, the coal will be trucked 180 kilometres to Rey’s wharf at Derby, then barged to ships for export.
After 20Mt of highwall mining, Rey has the opportunity to either develop a 2Mtpa run-of-mine bord and pillar operation, or a 4.4Mtpa ROM longwall mine.
Rey shares are unchanged at 33c.
