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The resource is located immediately west of Wesfarmers' Curragh mine, but if developed will target the Scorpio and Centaur seams in the Burngrove Formation – below Curragh and the Blackwater mine's Rangal Coal Measure target.
While the resource shows a high overall average ash content of 39%, Aquila said the medium to high volatile rank coal indicated a coking coal product could be produced.
Maximum overburden cover is 60m with an average seam thickness of 6m.
Aquila will next complete a concept and options study – where it will consider an opencut development with both coking and thermal product splits.
The company will also look at the distribution of ash in the resource, determine coke strengths and drill further south within the Mt Crocker exploration permit.
Aquila was trading mid-morning at $A16.38.
