Bowen Coking Coal has announced a 45 per cent upgrade in the resource estimate for its Hillalong South coal project near Glenden.

It comes as a new round of exploration funding kicks in under a farm-in deal with Japanese conglomerate, Sumitomo Corporation.

The 64 million-tonne resource at Hillalong South takes the total resource of the broader Hillalong project to 106 million tonnes, of which 56Mt is classified in the indicated category and 50Mt as inferred.

Bowen Coking Coal chief executive Mark Ruston described Hillalong as a strategic block in Bowen’s regional plan for its Burton mining complex.

“Hillalong is in relatively close proximity to the Burton infrastructure which could create a low-cost start-up option, similar to how we commenced operations with Broadmeadow East,” he said.

“The significant upgrade in the resource is not only great news, but also gives us confidence to invest further in this valuable deposit to work towards a development decision.”

The 2022 exploration program defined more resources to the immediate north of the Hillalong South deposit, Bowen Coking Coal stated.

It also provided valuable information on the interpreted intruded areas in the resource.

In June the company announced that Sumitomo had agreed to proceed with Phase 2B of the farm-in agreement at Hillalong, where Sumitomo will contribute a further $2.5 million plus GST to the work program.

It may then exercise an option to acquire a further 5 per cent interest in the Hillalong coal project, taking its total interest to 20 per cent.

Bowen Coking Coal said the Phase 2B program would focus on additional exploration drilling, firming up the resource and advancing the project towards feasibility studies and environmental approvals.