The shallow intersections suitable for open pit mining were discovered after completing 11 holes for a total of 1650m on the company’s Teeg licence.
The sequences have an apparent thickness of 20-40m per hole, one of which is only 3.5km from coal intersections identified in a previous due diligence program.
Draig managing director Mark Earley was upbeat about the progress.
“Although it’s still early stage, we are very pleased with the initial drill results, particularly to have located this coal sequence,” he said.
“Most significant is the fact the coal intersections seem to be in line with seams discovered during our initial drilling on Teeg.”
Eight more holes are planned for the site in the coming days.
Teeg spans 22 square kilometers in the Ongi River coal basin and is situated immediately south of the 50-year-old Bayanteeg open-cut mine, which has produced 5 million tonnes of coal to date.