Aviva said the deposit held considerable strategic value, given the current focus on major industrial developments in the region, including power generating facilities and other potential applications.

 

Aviva managing director Lindsay Reed said the company was yet to secure foward contracts, but the coal was most likely destined for domestic buyers.

 

In a release to the market, Reed said the company was currently negotiating access rights for exploration, title transfer and opencut mining.

 

"The aim is to announce details of the data review within eight weeks and commence a scoping study in June," said Reed.

 

The company recently spun off its gold assets into the recently-listed NGM Resources.

 

At the end of the last quarter the company had $1.32 million cash.