The project area spans 10,000 hectares in permits that “largely surround” the 2 million tonne per annum coking coal Stockton mine.

The Perth-based company is targeting an escarpment that could potentially support a 20-year mining operation.

Bathurst said about 60 holes had already been drilled on the escarpment and the first stage of the program consisted of seven holes for a total of 427m of drilling to be completed by mid-May.

The next wave of drilling will be to the north of the escarpment to confirm historical drilling results to support future resource calculations.

“There have been over 300 holes drilled in the Buller Project area,” Bathurst said.

“The second phase will twin some of the existing holes to confirm information on the coal quality as well as extend the drilled area. Bathurst’s plan is to demonstrate the 50-90 million tonnes of exploration potential at the project.”

The second phase drilling is expected to be complete by July with Bathurst hoping to announce an updated resource in August.

Bathurst shares are down 4.2% to 11.4c yesterday, but closed up 44% on Wednesday after announcing its Buller expectations.