The results from the initial drilling program confirmed the continuity of the Macalister Upper seam over an area of 60 square kilometres.

Drilling unearthed an average seam thickness of 3.31m at depths of 90m to 300m with an average depth of 171m.

The explorer views this seam as an attractive target for longwall mining and expects to further increase resources towards the southeast of the project area in EPC 1164.

The project is down dip of Xstrata’s Wandoan project areas, although further development of this major open cut mine is on hold with the Swiss giant blaming the resources super-profits tax.

Looking at the quality of its boosted resources on an air-dried basis, MetroCoal found an average raw ash content of 25.2%, average sulfur of just 0.25%, average inherent moisture of 7.5% and an average energy content of 5078 kilocalories per kilogram.

More drilling is expected over the next few months while MetroCoal is next aiming to set an initial resource at its Norwood project immediately west of Bundi.

“The Bundi resource is proving up to be an ideal starting point for mining studies to fulfil MetroCoal’s ambitions of a 7 million tonne per annum long wall operation with a minimum mine life of 20 years,” MetroCoal chief executive Mike O’Brien said.

O’Brien was general manager of the South Bulli longwall mine in 1991-92.

MetroCoal shares are up 23% to 32c this morning.