The explorer yielded a best intersection of 16.40m in the Lane Shaft seam.

The best intersection started at a depth of 120m and included 12.2m of interval thickness at a calorific value of 5236 kilocalories per kilogram.

There were four other holes with interval thicknesses ranging between 6m and 12.8m, with calorific values at 5046-5181kcal/kg.

All intersections were within 8m of a depth of 116m.

Ongoing drilling in EL6861 is part of a program to upgrade the 760 million tonnes of indicated and inferred resources at the Oaklands project to measured status.

Coalworks is aiming to complete the bankable feasibility study of its open pit Oaklands North coal mine by mid-2010.

The project is a joint venture between 60% stakeholder Coalworks and 40% owner Willala Pastoral Company.

Shares in Coalworks closed up 5.5c (29.7%) to 24c yesterday.