Guildford increased the JORC-compliant inferred resource for the tenement to 1.036Bt of thermal coal, up from 925.8 million tonnes.

It follows predictions made by independent geologist group Moultrie Database and Modelling which recently confirmed an exploration target for the tenement of somewhere between 0.58Bt and 5.72Bt.

While further assessment of the coal quality is to be conducted, results to date have confirmed the coal is of export quality, with moderate ash and low sulphur.

Guildford said the Hughenden project had huge potential and would be supported by existing infrastructure.

“The project has the scale and potential to support multiple projects producing substantial export thermal coal tonnages with open cut and underground mining potential, which are located in close proximity to infrastructure, with the Mount Isa to Townsville rail line running across the project area,” the company said.

The Hughenden project is situated at the northern end of the Galilee Basin and covers approximately 16,500sq.km of exploration permit for coal, of which an estimated 11,500sq.km has been granted.

Guildford is currently consulting with QR National subsidiary ARG and the Port of Townsville to finalise the feasibility for a 10Mt per annum transport and shipping solution for the Hughenden project.

Guildford said it hoped to move binding contracts by the end of 2011.