A total of 10 cored holes have been completed since drilling started almost a year ago with the future underground mine expected to produce high-quality semi-soft coking coal and thermal coal.

The development concept study is expected to be released in December.

In its quarterly report, NuCoal hinted that the development of the Whynot seam could negate some of the start-up costs by producing either an unwashed semi-soft coking coal or a premium thermal coal which could fetch even more than $US120 per tonne free-on-board.

NuCoal said both single seam and multi-seam longwall mining options were under evaluation, as drilling so far has identified potentially six economic seams.

Umwelt Australia is already starting the baseline assessments in preparation for future environmental assessment work.

The explorer aims to start up pre-feasibility studies on the project in the March quarter of 2011.

NuCoal was granted the Doyles Creek tenement at least partly due to its commitment to establish a training mine to help tackle the skills crisis.

While the explorer remains in discussions with its strategic alliance partners – Hunter Valley Training Company, the University of Newcastle and Westpac Rescue Helicopter Service – NuCoal said plans were being made to progress several traineeships for drillers.

NuCoal has already taken on a trainee geologist and sponsored five geoscience students from Newcastle’s university with three-year scholarships valued at $7000 per year.

The company ended the September quarter with $6.8 million of cash and deposits.

NuCoal shares were unchanged at 32c yesterday.