International Coal is well-placed to be a leading developer of coal resources within the coal-rich area of the Eromanga Basin, which is only 200km away from the upcoming Galilee Basin.

During the March quarter, company directors David Round and Hugh Dai briefed a contingent of institutional and private investors in Beijing and Hong Kong about the company’s development to date.

International Coal said it received significant interest from Chinese groups in the company’s assets and was progressing discussions with these parties.

A site visit with potential development partners was imminent.

In addition, Round and Dai met with representatives of a number of very substantial China-based groups which expressed a strong interest in partnering with the company to jointly develop its South Blackall tenement.

In light of the interest, International Coal plans to commission concept study in the short term in order to assess the viability of its massive landholding in the South Blackall region.

The company made significant headway on its South Blackall and Bundaberg tenements during the quarter, successfully completing a phase 1 drilling program at South Blackall.

It resulted in 2400m of rotary and core drilling undertaken.

Following the drilling program, International Coal defined a 728 million tonne JORC inferred resource of thermal coal at South Blackall.

Average cumulative seams of 13.93m were derived, exceeding Moultrie’s prediction of seams reaching 10m.

To date, the company has drilled less than 15% of the South Blackall tenement.

It is in the midst of preparing a plan for a phase 2 drilling program at South Blackall, slated to commence in the next few months.

International Coal said it was now ready to kick off drilling at its Bundaberg tenement, following the conclusion of a landowner compensation agreement.

East Energy Resources and NSL Consolidated are among the other coal exploration companies with interests in the upcoming Eromanga Basin.