The junior acquired a 90% interest in the Ferndale project in late January and recently upgraded the exploration target from 60-85 million tonnes to 250-300Mt.

Of this amount, 10-50Mt of thermal coal is expected in the Newcastle coal measures at depths of 20-70m.

The Whittingham coal measures, which includes the Wambo and Blakefield seams, is expected to bring in another 200-250Mt at depths exceeding 150m.

At the Oaklands project in southern NSW, an independent market study on the coal-to-liquids plant proposal flagged output of 7000 barrels of petroleum per day – about 2% of Australian consumption.

The automotive-grade petrol produced from the Lanes Shaft seam is expected to be railed for distribution in NSW and Victoria.

A separate study on the groundwater has reduced the previously estimated dewatering requirements, which Coalworks noted was “a very positive outcome”

A bankable feasibility study has begun for Oaklands, which has 822Mt of resources including 121Mt measured.

In mid-April the company lifted the inferred resource at its Vickery South project near Gunnedah to 42Mt.

A second phase of drilling is planned, while Coalworks is testing more samples to identify coking coal potential in the low-to-medium ash and sulfur resources.

Coalworks ended March with $9.6 million cash.

Shares in the company are in a trading halt this morning and were last at 47c.