AustChina Holdings has upgraded the resource statement for its Blackall coal project, lifting the indicated coal resource from 30 million to 55 million tonnes.

And more than 800Mt of the overall 1.275 billion-tonne coal resource are estimated to lie at less than 50m depth.

By mid-2024 the company intends to commence a preliminary mining study and look for the optimal locations and mining methods best suited to the nature of the deposit.

The project lies about 20km south of Blackall in Central Queensland.

AustChina carried out a cored drilling program last year, aiming to provide additional stratigraphic, structural and coal quality knowledge of the project.

The company commissioned McElroy Bryan Geological Services to assess coal resources for its Blackall project, taking in results from the geological and coal quality data generated from the drilling program.

Coal resources for the Inverness deposit within EPC1993 and EPC1719 total 55 million tonnes of indicated resources and 1200Mt of inferred resources.

The additional drilling at four sites in the central part of the deposit within EPC1993 has decreased the total estimated resources by about 28Mt from 1303Mt in 2020 to 1275Mt in 2024.

Indicated resources have increased from 30Mt to 55Mt after reclassifying some inferred resource. Inferred resources have been reduced by 51Mt from 1271 Mt in 2020 to 1220 Mt in 2024.

AustChina says it is investigating alternative low-carbon technologies to utilise its coal on site for energy generation and/or other products.

Additional samples obtained during the 2023 drilling program are available for evaluating alternative uses for the coal through new processes or technologies.