The definitive feasibility study is underway and consultancy A&B Mylec started coal quality assessment and wash plant design in July.

Laboratory results of 22 out of the 33 holes cored in 2010 for quality assessment have either confirmed or slightly excelled the standards set in the prefeasibility study.

The project is expected to produce a bituminous thermal coal with energy content of 5539-5666 kilocalories per kilogram on a gross as received basis.

This compares to an average quality of 5528kcal/kg GAR assumed in the prefeasibility study released in January.

Analysis of the sulfur and moisture content is still underway.

Rey said the DFS remained on track for completion in June 2011.

Rey aims to start mining through an initial 2 million tonnes per annum highwall operation, while there are bord and pillar and longwall mining options for further development.

The Canning Basin project holds a total resource of 510.5 million tonnes, with the coal to be trucked 180km to the Port of Derby for export to China and India.

After eight years of highwall mining, Rey aims to either start up a 2Mtpa raw coal bord and pillar operation, or a 4.4Mtpa raw coal longwall operation.

On Thursday Rey appointed Lenegan as chairman, after founding chairman Julian Ludowici retired from the board.

Lenegan held various senior management positions during his 27-year stint at Rio.

This included major roles in the development of the Kaltim Prima Coal mine in Indonesia and the Tarong Coal mine in Queensland.

He is also a former chairman of the Minerals Council of Australia, a former president of the Australian Mines and Metals Association and a director of OZ Minerals.

"We are delighted to have secured such an accomplished mining industry executive to succeed me as chairman,” Ludowici said.

“Charlie's experience and achievements in both coal project developments and in Western Australia will be invaluable for the ongoing development of Rey."

Rey shares closed up half a cent to 23.5c yesterday.