Four holes have been completed for a total of 591m as part of a 1600m,10-hole drilling program.

“Preliminary quality data received by the company confirms the Titiribi project is host to multiple coal seams of significant thickness and has the potential to produce a metallurgical coal product, subject to further and confirmatory test work,” a company spokesman said.

Within the length of the four holes, 31 coal seams were intersected – including 12 with widths over 0.8m.

There were some impressive coal seams intersected within 125m of drill hole depth, including 7.3m cumulative thickness at 60-68m and 13m thickness at 110-124m.

Independent quality consultants The Bluefield Group tested the coal and reported the "potential coking properties as defined by the free swelling index (FSI) for the deposit were generally high and excellent for markets".

“Thus, the primary use of the coal is likely to be for the metallurgical coal market in some capacity, subject to other test work,” it wrote.

“Comparable products in terms of FSI, ash value, total moisture and volatile matter are currently traded in the metallurgical coal market, with the Titiribi deposit’s “ultra-low” phosphorus in coal being a potential market advantage.”

The remaining six drill holes will confirm the continuity of seams and potential marketability of the coal.

Modelling of the deposit will enable the finalisation of mine planning work for the scoping study, which is due to be completed in the June quarter, to assess the economic viability of the Titiribi coal project.

The company is targeting an initial JORC compliant resource by Q2, 2013.