As a result of the coal intersections from its Phase 1 drilling program, the exploration target for the project, including all seams over the full 2100ha area, has been increased to 150-240 million tonnes of metallurgical and thermal-quality coal.

The exploration target has been based on the four coal seams and a cumulative coal thickness range of 7-11m of coal across the tenement area.

“A discount factor has then been applied for geological loss including potential structure and seam thinning,” the company said.

“All four seams display thicknesses amenable to underground mining. A default relative density of 1.40 g/cc was used to estimate the exploration target range.”

Mackenzie is bound to the west and east by the Jellinbah and Yarrabee mines, where the majority of production is ultra-low volatility PCI coal, as well as production of semi-soft and thermal coals.

“Considering its proximity to these mines, Mackenzie is expected to be of similar quality,” Cougar said.