The project comprises five tenures spanning 71 granted blocks of 217sq.km.

Blackwood said the exploration target was based upon borehole collars and seam picks, interpreted by company personnel and collated into a Mincom database.

The project is adjacent to the existing QR rail network and 300km from Brisbane port.

Blackwood chief executive Todd Harrington said the new exploration target for Chinchilla confirmed it was a priority project for its shareholders.

“A large amount of historical data on the Chinchilla project was found when collating historical data from the adjacent Surat projects,” Harrington said.

“Blackwood’s strategy is to use and understand all historical data first and foremost on all its assets.

“This information contains many millions of dollars of value, and allows new exploration to be complimentary to the resource understanding and interpretation.”

The company has outlined a confirmation drilling program at Chinchilla which will begin in the second quarter of 2012.

Blackwood holds a number of coal exploration permits in Queensland, including tenements in the emerging Galilee Basin and Bowen Basin.