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Red Hill is located 45km north of Moranbah and between BMA's Goonyella Riverside mine and Peabody Energy's Burton mine.
The resource was defined following five 100mm partially cored holes and 5800m of drilling.
Aquila assessed the Leichardt, Vermont and Girrah seams which all lie in the Rangal and Fort Cooper Coal Measures.
While the Leichardt Lower seam was not continuously intersected, drilling found the Leichardt Upper seam at a depth of 60–80m thickening from 1.5m to 2.5m.
The Vermont seam lies 25m below the Leichardt and is 2.5–3m high.
“Based on this work, the evaluation of potential underground mining options is continuing and conceptual mining study is in progress. This work is considering a number of development configurations including bord and pillar and short longwall options," the company said.
Aquila's third stage of exploration will concentrate on further definition of the resource, quality assessment and the proposed box cut and initial underground development of areas along the northwestern boundary of the tenement.
