Cokal Executive Director Pat Hanna said the maiden inferred resource estimate covers an area which occupies only 8% of the total lease area. There is significant upside potential as the drilling program extends into the remaining areas of the BBM lease.

“The low in-situ ash content indicates there is a reasonable opportunity that a direct ship style operation can be developed, avoiding the need to construct a coal washing plant which would involve significant time and capital, this is indeed a distinct advantage,” said Jim Middleton, managing director, Cokal.

The BBM lease covers an area of 19,920 hectares, immediately adjacent to BHP Billiton’s Juloi lease, straddling the Barito River and has numerous outcrops of bright coal.