The 2000m open hole program will delineate the resource before the company carries out geophysical logging and coal quality analysis to establish a JORC-complaint resource estimate.
Northern Energy said that based on previous exploration, the resource was of high volatile, low sulphur, low nitrogen thermal coal suitable for the Asian power utility market.
The area was explored in the 1970s, which established the Juandah sequence of the Walloon coal measures.
On completion of drilling in two to three weeks, Northern Energy will move the rig to its Ashford hard coking coal project in northern NSW to begin drilling.
