In the company’s latest quarterly report, Spitfire said it was currently in discussions with a number of potential strategic JV partners.

During the December quarter Spitfire acquired an option in the Elderslie exploration licence application (ELA) that covers 70 square kilometres near its current Langloh, Avoca and Ouse projects in Tasmania.

Spitfire said the Elderslie tenements were previously explored by BHP and contained a number of known thermal coal occurrences and – as with their other project areas – were close to rail, road and port infrastructure.

With $A5.4 million in cash at the end of last year, Spitfire said it was reviewing the scope of its exploration commitment given other priorities at its South Woodie Woodie manganese project in Western Australia, strategic partner discussions and the current financial environment.

Shares in the company were unchanged this morning at 6.1c.