The initial resource is located in the Cretaceous Burrum Coal Measures on the Western limb of the Burrum syncline.
Northern Energy managing director Keith Barker said yesterday’s announcement was an important milestone in the development of Colton.
“We are confident of extending this resource and identifying similar areas around the edge of the syncline,” Barker said.
“Further verification of historical data and ongoing geological modeling is expected to identify similar open cut areas that will extend the life of an operation established at Colton.”
The company expects to ramp up the 500,000tpa Colton open cut mine next year.
Northern Energy shares closed unchanged at 34.5c yesterday.
