Bandanna said these figures represented the potential for a large scale thermal coal project at South Galilee which would require access to the port at Abbot Point.

Bandanna, which has labelled itself an “emerging force in the Australian thermal coal sector”, said feasibility studies completed during the June quarter found its “golden triangle” in Queensland’s Bowen Basin also had massive potential.

Despite unfavourable weather limiting field operations and drilling at the golden triangle projects consisting of Springsure Creek, Arcturus and Arcadia, the company managed to record a combined JORC resource exceeding 800Mt with the potential to produce in excess of 200Mt of thermal coal.

Wet weather and associated soil conditions prevented drilling operations at its Arcturus project but technical and commercial studies still proceeded in the quarter.

The proposed mine, which is expected to produce 5Mtpa of product coal is estimated to have an export thermal coal ash content of 13% which can be sold raw.

The proposed mine has the potential to link to the Wiggins Island Coal Export Terminal infrastructure at Gladstone which will enable international export of thermal coal.

Bandanna said subject to approval Arcturus could be in production by 2014.

While wet weather restricted drilling at the Springsure Creek, Bandanna still managed to drill 12 holes for a total of 2621 metres.

Bandanna recently increased the indicated resources at its Springsure Creek longwall project to 129.5Mt – up from 72.2Mt – while total resources at the project climbed 15.5% to 374.5Mt.

Bandanna managing director Ray Shaw previously said the new resource statement confirmed the project’s potential.

“This resource increase highlights the quality asset that our Springsure Creek project clearly represents,” Shaw said.

Bandanna has been able to continue work at the Springsure Creek and Arcturus Downs projects after it qualified for lighter measures under transitional arrangements for the Queensland government’s proposed strategic cropping land policy in June.

The lighter measures handed down to Bandanna under the SCL policy gave the company the go-ahead to develop two mines expected to produce a total of 16Mtpa of coal per year.

Bandanna will focus on coal exploration and the development of Arcturus and Springsure creek in the next quarter.

The company will also attend to infrastructure needs to meet WICET stage 1 and stage 2 commitments.

After the reporting period Bandanna was made aware that under a farm-in agreement private resources company AMCI would elect to contribute remaining funds to extend the requisite $25 million to earn a 50% interest in the project.