Awarded to Bandanna subsidiary Carnarvon Coal, EPC 1189 is 75km north of the town of Injune and 145km from the Charleville-Brisbane railway.

Bandanna said both permits, EPC 1195 and EPC 1189, are about midway between Blackwater and Roma.

“The area encompassed by these tenements has received very little attention from coal exploration companies in the past, although there is considerable geological and geophysical control available from exploration by petroleum companies,” Bandanna said.

The explorer added a review of historical data indicated areas within EPC 1189 have the potential to contain Bandanna Formation coals in excess of 3m thick.

Bandanna also said several areas that have seismic data indicate coal seams within the formation may lie at depths of less than 60m, which would be suitable to open cut mining.

A reconnaissance drilling exploration program for both of Bandanna’s permits is scheduled to take place in the September quarter.

Shares in Bandanna closed up 2c to 25c on Friday and are unchanged today.