A coal-quality review of its newly acquired 282Mt Arcadia coal project has identified the potential for multiple product pathways, according to Yari Resources.

These include the production of semi-soft coking, PCI and high-energy thermal coal products, while the company is also assessing the potential for resource growth including five cored petroleum/coal seam gas (CSG) wells.

“Arcadia is emerging as a highly flexible coal opportunity,” Yari managing director Courtney Taylor said.

“The naturally low in-situ ash provides the potential for a relatively high-yield thermal product, while accepting a lower yield through selective mining and beneficiation may produce a smaller proportion of coal with semi-soft coking characteristics.

“We are continuing to build out the Arcadia technical database, with additional historical drilling and geophysical datasets already identified for review. This gives us a growing body of information from which to plan the next stage of the project.

“These are exciting times for Yari and our shareholders as we continue our resource expansion in the Bowen Basin, supporting our district-scale consolidation strategy amid rising competition for resources within the tier-one basin.”

Yari inked a deal last month to acquire project owner Northern Comet Resources Company for $50,000 upfront plus 147,594,744 ordinary shares in Yari, representing 10 per cent of the company’s total issued capital.

Yari is also committed to $1.25 million in milestone payments and $20 million in payments linked to the start of commercial production and the first three anniversaries as well as a revenue royalty.

The Arcadia coal project ((EPC 1054, EPC 1772 and EPC 1042) is located within the broader Rolleston coal district, in the same region as Yari’s Rolleston South coal project (EPC 2318 and EPC 2327).

Ms Taylor said the acquisition was centred on turning Rolleston South from a standalone project into the foundation of a much larger regional opportunity.

Coal-quality specialist Chris McMahon of McMahon Resources conducted a review of historical data from 44 bore cores and 1472 samples across the principal B, C and D seams of the Bandanna Formation at Arcadia.

The review indicated average in-situ ash of about 10 per cent, Yari said.

Importantly, it showed Arcadia may offer flexibility to target different products from different parts of the deposit, rather than being developed around a single coal specification.