Bandanna Energy managing director Ray Shaw said the new resource statement confirmed the project’s potential.

“This resource increase highlights the quality asset that our Springsure Creek project clearly represents,” Shaw said.

“This resource increase will form the basis for a corresponding review of our reserve inventory and potential mine development plans.”

The drilling was completed despite heavy wet weather in the region and poor ground conditions.

Bandanna is targeting two longwall operations at the project for 11Mt per annum of run-of-mine coal.

First development coal is expected as early as 2014 and first longwall coal is due a year later.

The thermal coal project is targeting at least 23 years of mine life.

Bandanna shares closed up 1.4% or 3c to $2.21 yesterday.