The reserve was based on a nominal 4Mt per annum of saleable low-ash, high-volatile export thermal coal product and using a 20-year mine plan, according to the company.

Northern Energy said the marketable reserve comprised a proven reserve of 66Mt and a probable reserve of 3Mt.

Northern Energy chief executive Keith Barker said the marketable reserve was another milestone.

“Following the resource upgrade announced in September, a ‘base case’ mine plan has been drawn up by independent mining consultants Minserve as part of the ongoing feasibility studies for this project,” he said.

“Having established this initial reserve base, our intention is to continue further mine planning iterations, with the objective of increasing mine size and mine life and converting additional resources to reserve status.”

The Elimatta open cut mine project is planned to be an excavator and truck contract mining operation feeding a 950t per hour, two-stage coal processing plant.

The coal will be shipped through Gladstone’s proposed Wiggins Island Coal Terminal via the proposed Surat Basin Rail with rail and port capacity expected to be available from mid-2012.

The company is also working on attracting third party investment in the Elimatta project.

Northern Energy did not mention whether any of the reserves or resources were JORC compliant in its announcement.

Shares in Northern Energy last traded up 21.9% to 44.5c.