The company considers these initial results encouraging, although additional results will be needed to confirm the potential of the area.

The program has confirmed the presence of potentially minable coal seams, mainly in the eastern half of the licence.

Geological modelling has begun and preliminary (inferred) resources will be estimated following completion of this initial drilling program.

Managing director Andrew Firek said: “These results show that the coal intersected in a number of seams are consistent with the coal targets we have set and confirm the potential for high-quality coking coal.

“The crucible swelling number of four to seven over almost three metres of coal at 139 metres depth is indicative of coking coal. The remaining shallower seams intersected are prospective for high-quality thermal coal.”

Results for additional analyses, including fluidity and calorific value, are yet to be received.

The first 11 open holes of Coalworks’ initial 17-hole program have now been drilled.

The remaining cored holes are to be completed. Geophysical logs are being used to correlate between the cored and open holes.

Samples from the next completed core hole, VS013, have been received by the lab and will be tested shortly, the company said.

Coalworks shares were up 7.41% mid-morning today at 29c.