Phase 1 of the exploratory drilling program has recently been completed at Minyango, with results indicating that the site has potential to produce and export coking and thermal coal products.

“The drill results obtained and the resource estimate outcomes were better than expected in terms of overall volumes, seam thicknesses and coal quality encountered in the recent drilling," Caledon Resources vice-president of exploration Paul Ingram said.

The latest drilling results have increased the previously reported non-JORC compliant resources of 205Mt by 17%, and raised the resource to a JORC standard.

The company said underground mining could be an option for the site and that additional drilling to expand the existing resource is also being contemplated.