Results from phase one of a drilling exploration study at Norton’s coal project, near the Central Queensland town of Middlemount, found a potential target of 35–40 million tonnes of low-volatile PCI coal.

The company said while it was too early for JORC resources or reserves to be delineated, an application for a mineral development licence is being submitted for the potential PCI area.

Norton chairman Anthony McLellan said the Middlemount coal project adds significant value to the company.

“The extraordinary strength of the coal sector and positive results from the recent drilling and scoping study have encouraged us to now accelerate our program to prove up the project’s potential,” McLellan said.

Further drilling programs have been commissioned to prove up the reserves.

Norton was trading up almost 23% this morning at 29.5c.