Drilling at the Rolleston South project has confirmed continuous coal seams up to 3m thick, according to Yari Minerals.

Preliminary testing confirmed a high-yield, low-ash coal, supporting the potential for a semi-soft-style metallurgical product, the company reported in its latest update to the ASX.

“The board is delighted with the indicative coal quality results to date, highlighting the seams are thicker than the current resource model,” Yari managing director Anthony Italiano said.

“The coal quality parameters will be further tested by detailed assay work. We look forward to updating shareholders as additional coal quality results and further data become available.”

Related: Yari set for inaugural drill campaign at Rolleston South

Yari said its 2025 exploratory drilling campaign was nearing the mid-point, with two holes completed and work on the third and fourth underway.

Yari Minerals acquired the Rolleston South coal project, situated near Glencore’s Rolleston open-cut coal mine, in May through the acquisition of owner Resource Chain.

The resource has since grown from 78.9Mt to 151Mt, driven by the integration of open-source data from the Rougemont 1 and 2 coal seam gas wells that State Gas drilled in the area 2021.