The new tenements have a combined indicated and inferred JORC-compliant resource of 65 million tonnes of lignite, taking the project’s total tonnes to 765Mt.

The company said the project has an estimated coal inventory of 325-400Mt.

Scaddan is a joint venture between Blackham (70%) and Wesfarmers Premier Coal (30%).

Blackham said it has offered Premier Coal the opportunity to participate in the acquisition of the new tenements up to the extent of its 30% interest and is waiting on Premier Coal to complete due diligence.

Perth-based Blackham said based on the depth and thickness of the resource, the Scaddan deposit would be suitable for extraction by open cut methods.

The company is finalising a scoping study at Scaddan for a potential coal-to-liquids operation.

Based on a 30,000 barrel per day CTL operation, Blackham said the current resource could provide feedstock for more than 45 years.

Shares in Blackham Resources jumped 37.5% or A4.5c to 16.5c yesterday on the Australian Securities Exchange.