Having now drilled 198 open holes covering some 36.52km in the Baralaba North area within EPC 1047, Cockatoo said its follow-up structured 3D modelling was nearing completion.

The company said the coal quality results of its latest round of drilling, which has covered 57 open holes for 12km and four cored holes for 640m, were expected in the near future and would also be integrated with the 3D modelling to provide a JORC-compliant resource estimate.

Cockatoo said cumulative downhole coal intercepts of up to 34.6m with average intercepts of 6.5m had been achieved over the Baralaba North target area.

The company is looking at a coal zone of up to 1.8km wide and said it remained open to the north.

A fifth rig is expected to start up in mid-December, while Cockatoo said the quality of the individual seams identified would be determined by the current phase of core drilling.

The Bowen South project consists of MDL 352 and EPCs 1047, 862, 863 and 1063 for a total acreage of 55,790 hectares.

Wonbindi Coal, an 80%-owned subsidiary of Cockatoo, holds both MDC 352 and EPC 1047 permits.

Cockatoo shares added 1c yesterday to 33c and remain unchanged this morning.