International Coal (ASX: ICX) has increased Inferred Resources at its Bundaberg Coking Coal Project in the Maryborough Basin, Queensland, by 33% to 37.9 million tonnes.
This follows drilling that intersected additional coal and demonstrated the continuity of coal seams, which have hard coking coal characteristics comparable to hard coking coal mines in the region.
Further upside potential remains from an Exploration Target of 20Mt to 45Mt as a result of the new drilling at the joint venture project with Hancock Prospecting subsidiary Queensland Coal Investment (QCI).
“The ICX and Queensland Coal Investment Joint Venture continues to receive good results from the Bundaberg Project,” chief executive officer Glenn Simpson said.
“We look forward to developing a program for further refining our understanding of the resource, its size and continuity.”
The resource upgrade at the Bundaberg Coking Coal Project springs from the further two holes - BUN012P and BUN 013P – that were drilled in October and intersected coal seams in the Burrum Coal Measures.
These intersected a total of 4.56 metres and 6.42 metres of coal.
Seams in the lower Burrum Coal Measures have been correlated between the sites drilled in EPC 2196 with a potential working section identified in the Lower Burrum seams.
The most recent modelling also provided further control on the location and structure of the coal occurrences previously defined.
Seams in the Lower Burrum Coal Measures can be correlated down dip from 240 metres to 560 metres.
International Coal's Resource upgrade for the Bundaberg Coking Coal Project is immediately value accretive.
Notably, the coal has prized hard coking coal properties with a Coal Swelling Index of 9 (10 is highest) as reported previously, comparing favourably to existing hard coking coal mines in the region.
The project also benefits from further upside growth potential in the form of the 20Mt to 45Mt Exploration Target while rail and port infrastructure is located just 20 kilometres north of Bundaberg.
Little wonder then that the project’s development is a key priority for the company.
Proactive Investors maintains a valuation for International Coal of $0.27 - $0.33 with a 12-18 month time line.
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