Drilling targeted the thicker, near surface, higher quality number 70 coal seam in the northwest zone where initial production is expected to start with a 100,000 tonne bulk anthracite sample.

The bulk sample permit application at Groundhog was finalised and lodged, the company said in its June quarterly report.

The mine design and associated mine plan for the bulk sample is complete, using room and pillar mining accessed through an adit.

It is likely that the adit will double as the access point for the start of small-scale mining and future commercial production.

The bulk sample area was chosen for seam thickness, anthracite quality, structural geology, shallow floor dip, ease of access and high product yield.

Chairman James Chisholm said: “This past quarter has been a very active and busy time for Atrum. We have been progressing with our bulk sample plans and building our operational team to deliver first anthracite on ship by the end of the year.

“Our recent PFS demonstrated the potential for economic returns at Groundhog and we are now building on our experience and capability with the appointment of additional directors to the board.”