The study envisages a contract mining open cut, providing up to 1Mt to local domestic consumers within 7km of the site using existing infrastructure providers.
The capital requirements for the project are estimated at $24-$34 million to establish an operation with contract mining.
“Following consideration of the preliminary concept study, the NuCoal board has approved the immediate commencement of the next stage of studies,” the company said.
The study was conducted by independent technical consultants, Palaris Mining and Parsons Brinckerhoff.
Palaris recommended that the project progress through to development, including ramping up the exploration program in Area 2 to support it establishing a JORC-compliant coal resource from the 16 holes drilled at Dellworth.