In a statement, the company said the drill program and hole locations were clearly defined over the project area with a focus on shallow depth intersections and following seam structures.

“The results of our first program have provided significant valuable technical data from which this program is now based,” it said.

“Approximately 12-15 holes of rotary and diamond drilling will be conducted over the forthcoming months.”

Senior consultants and the management team are currently onsite managing the program and the development of an onsite camp.

“Technical results from our first program are currently being concluded and shall be released in the short term,” it said.

“Our aim is to significantly increase the inferred resource size from EPC2197 as previously announced in April 2012.”

International Coal director David Round said the camp developed at South Blackall was a significant step in the company developing an operational base in the region.

“This facility has been well planned and provides a professional and well managed base for our team and consultants onsite and also in the region,” he said.