The 7000m program will initially focus on the area adjacent to previous mining with the aim of verifying exploration results of previous tenement holders. Seam thicknesses of up to 17m were recorded in previous drilling programs.

The data will allow the estimation of an initial resource, commencement of preliminary mining studies and initial assessment of transport and market options to assess the possibility of early development.

“The current strong market for coal, in particular coking coal, is encouraging. While the buoyant industry conditions have resulted in the mining services sector being stretched, the renewed focus on the need for infrastructure investment in Australia, particularly rail and port capacity, is encouraging for a company that would be seeking access to these services following a successful exploration program,” company chief executive Keith Barker said.

Northern Energy has also obtained tenure over the whole of the company’s Elimatta project near Wandoan, Queensland. It has also been granted tenure for an area near Emerald in Queensland but has abandoned its application for an area near Texas, Queensland, following further assessment of regional trends.