Drilling has also identified better and thicker coal seams across the project area, with the majority encountered at 35-150 metres, managing director Hugh Dai said.

“The program has vastly improved correlation of the coal seams and confidence in their continuity,” he said in a statement.

“Drill Hole SB16 has identified a single seam of greater than 5.5m at a depth of just over 90m. The cumulate seams within this hole are significantly higher.”

Washing and treatment of raw material could be expected to increase gross calorific values by up to 20% from unwashed values, according to the company.

“Modelling indicates a resource of simple structure with no faulting and a shallow, simple synclinal structure,” Dai said.