Recent drilling has also yielded cumulative coal intercepts of up to 13.9 metres with an average thickness of 7.9m.

While measured resources have not yet been established, 206.6Mt of the project’s resources are in the indicated category.

Modelling of the deposit reveals it has been extended to 14.4 kilometres on strike and it is up to 2.5km wide. The depth is up to 150m.

Cockatoo’s wholly owned Woori project further northwest also targets the Juandah Coal Measures while other projects in its Surat Basin portfolio target the Taroom Coal Measures.

The Tin Hut Creek upgrade pushed up Cockatoo’s total Surat Basin resources to 1.46 billion tonnes, including 191.7Mt measured and 558.8Mt indicated.

The company’s reserves in this region amount to 40.6Mt.

Cockatoo shares closed up 6.9% to 46.5c yesterday.