The JV has revised the open cut indicated resource to a probable reserve of 26.2 million tonnes in the Kogan Seam and Macalister Upper Seam.
The reserve is sufficient to support a small-scale operation for more than 15 years, exporting about 1Mtpa through the Port of Brisbane.
Infill drilling and testing is being planned for this year and will underpin further technical and economic studies, the company said.
“This open cut mining reserve presents an exciting opportunity for the Columboola JV to potentially commence production exporting through the Port of Brisbane subject to approvals and final economic assessment, ahead of completion of the infrastructure connecting Columboola to the Port of Gladstone,” the company said.
“This will also allow the JV to establish a market base for its Surat Basin coal.”
The open cut resource target area lies between Yancoal’s Cameby Downs mine to the northwest and its Rywung resource to the east.
The average strip ratio for the reserve area, after allowance for mining losses and dilution, is estimated at 5.9:1.