After re-listing in February, the company began drilling at Ashford in June and a 5000m drilling program was completed in September.

The drilling program, plus historical data, resulted in delineation of an initial inferred resource of 14 million tonnes of hard coking coal.

The initial resource is contained within 10% of the total potential resource area of Ashford. The company said exploration in the northern area of the project has also shown resource potential.

The company will also look at extensions down dip to the west on the initial resource.

Northern Energy chief Keith Barker said the company was carrying out a study into its infrastructure requirements and had identified Newcastle as its export port.

Existing infrastructure had been identified to transport the Ashford product, which would involve reopening currently closed rail lines linking the mine to the Hunter Valley network.

On the company’s Elimatta project near Wandoan, Queensland, Barker announced the initial drilling program would commence. The company will work towards estimating a JORC compliant resource.

Northern Energy’s principal focus will remain on Ashford, with further drilling over the next three months.