Simpson announced his resignation due to health reasons but agreed to work until June 6 to help the board implement a transition plan.

“I have enjoyed working with the team at International Coal and I look forward to seeing the business grow and develop in the future” Simpson said.

The company initiated a search for a replacement CEO and executive director Hugh Dai agreed to step into the role until a successor was appointed.

International Coal is hoping its Consuelo project will be the flagship for the company and provide it with a major stake in a potentially large semi-soft coking and thermal coal prospect in Queensland’s Bowen Basin.

It intends to start drilling at the Consuelo project as soon as landholder negotiations and clearance work are completed this year.

In the March quarter a third tenement, EPC 2327, was granted in the Consuelo project.

Recent desktop reviews indicated that EPC 2327 had the highest potential for coal at open cut depths of all the Consuelo project tenements (EPC 2327, 2318, 2332).