Carpentaria noted that a historical hole drilled by the Queensland government hit coal intersections totalling about 7 metres across four seams at depths of 200-300m, and about 9 kilometres east of the Hughenden project.

“Importantly, two of these seams are of sufficient thickness to enable high-volume underground extraction once the lateral extent is confirmed,” Carpentaria said.

“Exploration is currently focussed in this area and an exploration target is being finalised, which is expected to confirm the substantial project resource potential.”

Carpentaria owns 20% of the project while Guildford owns 80%, and has already spent $2 million on exploration.

The total project covers a stretch of 11,000 square kilometres.

Carpentaria shares are unchanged at 60c this morning while Guildford shares are down 1c to 68c.