Clyde Park is a potential early-stage development opportunity that is close to existing rail and port facilities, the company said.

“The name of the project has been changed to better reflect the actual location of the project, which is on the Clyde Park and Strathtay properties located North West of Pentland in North Queensland,” it said.

Guildford Coal owns 62.7% of Clyde Park Coal Pty Limited, the project’s holding company.

Clyde Park Coal Pty Ltd is an Australian proprietary limited company with an independent board and a shareholders’ agreement and is not a joint venture.

The Clyde Park project – on the northeastern edge of the Galilee Basin – has a JORC Inferred Resource of 623 million tonnes of thermal coal.

“Potential exists to further substantially increase the inferred resource and ongoing drilling will focus on upgrading a portion of the inferred resource to indicated and further expanding the overall resource base,” the company said.

Permian coal seams are known to outcrop in this location and were previously mined in the old Oxley Creek coal mine.

Studies in support of the environmental impact statement for the Clyde Park project have started and an application for a mining lease is being prepared, for submission prior to the end of 2012, the company said.