The company said almost 900 metres of drilling had been completed over recent at months at South Blackall, despite unfavourable weather conditions.

“Whilst poor recent weather conditions and some mechanical delays have been encountered, the ICX Board are pleased with operations to date at South Blackall and look forward to more positive results from the completion of the program early next year,” International Coal said.

Drilling at the tenement to date has been successful, with multiple coal seams identified in all drill holes.

Following the pleasing results yielded from the drilling program, International Coal has begun geophysical down hole analysis on the area.

Meanwhile, the company said draft compensation agreements with most landowners, situated within EPC 2194 and EPC 2196 at its Bundaberg tenement, had concluded.

The company plans to register these agreements with the Office of State Revenue and notify landowners of its plans to commence drilling next year.

The company plans to drill 12 to 18 holes over the majority of EPC 2194 and some drilling is also scheduled for EPC 2196.

Bundaberg has an exploration target of 280–350 million tonnes of coking coal, according to a report by the Moultrie Group.

International Coal said it had appointed an experienced project team to oversee the proposed drilling program at Bundaberg.