Resources have been identified in two seams with indicated resources of 8.5Mt in the Elphinstone seam and 15.4Mt in the Hynds seam.

The quality of the resource is yet to be defined, but preliminary results have indicated export quality hard coking coal similar to nearby Rio Tinto open cut, Hail Creek.

Company chief Paul Williams said a step out drilling program had been conducted to identify additional resource tonnage, however, the program had been halted due to heavy rain in the area. Drilling will recommence in December and results are expected in the first quarter of 2005.

“Subject to the outcomes of the step-out drilling and quality testing, we will undertake a feasibility study during 2005,” Williams said.

“We are in advanced stages of negotiations with potential joint venture partners with the aim of acquiring project funding for the next stages of development.”

In New Zealand, a drill program will commence early next month at Whareatea West in the south island.

Eastern management will also meet with the New Zealand government early next week to discuss company plans to develop additional coal projects in the country.