The exploration target was derived from upon borehole collars and seam picks that were interpreted by Blackwood staff and collated into a Mincom GDB database.

Blackwood has finished up a phase 1 exploration program at the tenement, which consisted of 21 open holes with downhole geophysics.

Phase one was completed on time and under budget, paving the way for Blackwood to fast-track phase 2 exploration activities.

Blackwood said it would kick off a phase 2 drilling program at Taroom sometime in the second quarter of 2012.

The drilling program will be geared towards four areas to target significant tonnages of shallow coal.

It will consist of 100 drill holes aimed at determining the opportunity to develop open-pit mines within the four target areas.

Blackwood, which holds a number of coal exploration permits in Queensland, now has a total JORC exploration target of 3.29-4.74Bt, spanning from its tenements.

Blackwood chief executive officer Todd Harrington said Taroom’s exploration target had boosted the company’s confidence in the project.

“These results reinforce Blackwood’s confidence in the quality of our assets around Taroom, and give the company an opportunity to further explore coal mineralisation which we believe could support more than one open-cut mine," he said.

“This billion tonne plus open cut exploration target, in conjunction with the recent announcement of a 190-240mtC open cut JORC exploration target at the Chinchilla project, gives Blackwood exposure to potentially multiple open-cut projects in the rapidly-emerging Surat Basin.”

The Taroom project is located to the north of Xstrata Coal’s Wandoan project at the north-eastern edge of the Surat Basin.

The Taroom project is comprised of five tenures covering 189 sub blocks of 639sq.km.

During 2012 the company aims to explore infrastructure opportunities to de-risk the Taroom project.

The company is considering the Surat Basin rail as a possible transport opportunity as well as the Wiggins Island coal export terminal.

To date, Blackwood has signed a memorandum of understanding with the Port of Brisbane and Queensland Rail to investigate export opportunities through Brisbane and will commission work to study the potential options emerging in the Gladstone area.