The Broughton project is adjacent to Rio Tinto’s massive Hail Creek coking coal mine and the site has easy access to the existing rail line to Dalrymple Bay.
A drilling program mid last year identified a 24 million tonne resource of export quality, blend coking coal. The company is targeting being in production within three years, subject to feasibility, said ceo Paul Williams.
He said the company will also be focusing on upgrading the resource to measured status and identifying further resources. Joint venture discussions will continue as well as discussions with surrounding tenement holders, he said.
The pre-feasibility study will be funded using existing funds Williams said.
At Eastern's Whareatea West project, located in New Zealand, initial geological studies have indicated the potential for a significant coking coal resource. The company said this amounted to 9.3Mt indicated and 8.1Mt inferred. A drilling program is scheduled for the project later this year.