Bowen said open hole drilling results within the permit demonstrated a number of coal seams exist from 300m to over 600m below the surface although the company notes that 500m is about the limit of feasible longwall operations.

Of the new target 68sq.km area, Bowen said this was the most promising prospect for containing potential coking coal plus having the dimensions to provide sufficient resources for a longwall mine development.

The company’s forward exploration program will seek to further define the coal mass, coal seam thickness and quality in this target area along with geotechnical data concerning roof and floor conditions for mining and gas control.

At the company’s East Middlemount project to the north, Bowen said an “in-house” review of results on hand confirmed the Leichhardt and Upper Vermont Coal seams of the Rangal Coal Measures exist at depths of 200-400m below EPC1085 and EPC1014.

Bowen said geophysical logging confirmed a coal seam, possibly the Leichhardt Seam, was around 4.5m thick, although “geological complexity and faulting is apparent in drilling results”

“This will impinge on coal seam continuity and will require Bowen Energy to undergo detailed evaluation and work programs to delineate areas permissive for potential underground development,” Bowen said.