Australian Pacific Coal received a maiden resource of 23.9 million tonnes of thermal coal for the East Wandoan coal project in the Surat Basin, Queensland.

The company quoted unlisted partner Cuesta Coal as saying the resource was present in the southwestern corner of EPC1955, 1 of 4 exploration permits that make up the project.

While five seams - A to E - are present in the area, only seams A to C are included in the current estimate.

Coal quality data from the cored piles indicate the coal has low sulphur and ash along with energy levels consistent with Surat Basin coals.

The resource is expected to increase after Cuesta carries out a 3000 metre drilling program at East Wandoan, which is planned to start in late March.

Closer spaced drilling in the current resource area should allow the two lower seams to be more clearly defined and included in the resource estimate.

The current resource area is open to the north and east and further drilling is planned as part of the drilling program.

Cuesta shareholders had earlier this month approved a conditional subscription deal with China’s Beijing Guoli Energy Investment valued at about AUD 20 million. This would fund the exploration program.

(Sourced from www.proactiveinvestors.com.au)