Liberty Resources managing director Andrew Haythorpe said the drilling, geophysics, survey and laboratory data would be utilised to announce a maiden JORC resource statement from the initial exploration, with measured, indicated and inferred categories anticipated.

“The drill results to date are extremely encouraging,” he said.

“This discovery is already being assessed for its economic potential to support a shallow open cut coal mine, only two weeks after the drill rig was mobilised and 6 weeks after the permit was granted.

“While share market conditions remain depressed, the company is now experiencing the best conditions for low cost and rapid technical support and project advancement in eight years.

“Rigs, assay laboratories and technical personnel are all readily available.”

Haythorpe said the discovery was only 40km from the coal mining town of Moranbah and close to road, rail and port infrastructure.

“This opportunity is being investigated as it presents the company with a unique opportunity to build immediate short-term value for shareholders, while the company works toward the longer term vision of low cost energy and fertiliser from coal,” he said.

The Leichhardt L13, Leichhardt L4 and Vermont V1 seams are present across a wide area and at an economic depth – from approximately 40m below surface – and are considered to be commercially viable for open cut mining methods in the area.

The priority target seams within the Rangal coal measures are important and assay results confirming coal quality are pending.

The company said corehole spacing of 500m and logged scout holes of 1000m and 2000m would be 3D modelled as soon as all the data had been analysed and coal quality testing results from Bureau Veritas laboratory was completed.