In addition, the company has grown the indicated resource estimate by 113% from 207Mt to 440Mt.

Bandanna Energy managing director Michael said the revised resource estimate further demonstrated the large scale of the company’s Springsure Creek project.

“The identification of a total resource of 768Mt, and in particular the 608Mt estimated in the main target seam (Aries 2), confirms the potential for development of a world scale thermal coal mine,” he said.

Gray believed Springsure Creek was uniquely positioned to become Australia’s next major thermal coal producer, following the boost in project resources and confidence.

Also in the project’s favour, according to Gray, was its high coal quality; relatively low capital intensity; competitive operating cost structure; proximity to existing rail lines; secure port capacity and advanced state of approvals.

The revised resource estimate, which has been prepared by Xenith Consulting, includes the results of an additional 58 drill holes completed since the previous estimate announced in August 2013.

Bandanna’s shares remain in voluntary suspension on the Australian Securities Exchange pending the outcome of discussions with Credit Suisse.

“There are a range of possible outcomes of the discussions, some of which could be materially prejudicial to the company, and may require the company to explore alternative funding avenues,” it said.

“As such, the company seeks to continue the voluntary suspension until such time as the terms of the restructure are sufficiently finalised to enable the market to trade on an informed basis.

“The company is unable to determine when the outcome of the discussions with Credit Suisse will be finalised, but will update the market when it is in a position to do so.”