Massive 91% Resource Upgrade Positions Yari Minerals for Coal Market Growth
Rolleston South Coal Resource Soars to 151Mt Without Drilling Costs
Yari Minerals (ASX: YAR) has delivered a substantial 91% increase to the JORC Inferred Resource at its Rolleston South Coal Project in Queensland's premier Bowen Basin, boosting the resource from 78.9Mt to 151Mt. This significant upgrade was achieved without additional drilling costs by cleverly leveraging data from two coal seam gas wells.
The enhanced resource positions Yari as an emerging player in Australia's coal sector, with the company now accelerating development plans including its inaugural drilling campaign scheduled for the second half of 2025.
Smart Data Integration Delivers Major Value
The Yari Minerals coal resource upgrade demonstrates the company's strategic approach to maximising shareholder value through intelligent data utilisation. By incorporating open-source data from two coal seam gas wells (Rougemont 1 & 2) drilled by State Gas (ASX:GAS) in 2021, the company achieved:
- 91.3% increase in total resource to 151Mt
- Expanded geological modelled area
- Improved coal seam thickness estimates
- Enhanced seam continuity interpretation using advanced software
This cost-effective approach allowed Yari to significantly expand its resource base without the substantial expenditure typically associated with exploratory drilling programs.
"The 91.3% uplift to 151Mt in the Inferred Coal Resource, achieved by integrating open-file coal seam gas well data, is an outstanding outcome for Yari at this stage of the project's development. This growth reinforces the Rolleston South Coal Project's potential as a high-quality asset in a Tier 1 location and the potential for further upside to the resource," said Yari's Managing Director, Anthony Italiano.
Resource Quality and Distribution
The updated resource estimate incorporates data from 21 boreholes, including the two coal seam gas wells, providing a more comprehensive understanding of the deposit's characteristics.
| EPC | Formation | Seam | Depth Range (m) | Modelled Thickness (m) | Gross Insitu Coal (Mt) | Raw Ash (% adb) | Raw Calorific Value (Kcal/kg) | Raw Crucible Swell Number |
|---|---|---|---|---|---|---|---|---|
| 2318 | Bandanna | B | 145-450 | 1.25 | 4.4 | 12.8 | 6,201 | 1.5 |
| 2327 | As above | A | 70-450 | 1.25 | 17.0 | 10.6 | 6,310 | 0.5 |
| 2318 | As above | D | 185-450 | 1.74 | 6.0 | 12.5 | 6,055 | 0.5 |
| 2327 | As above | B | 89-450 | 1.90 | 57.7 | 9.1 | 6,041 | NA |
| 2327 | As above | D | 75-450 | 2.16 | 65.9 | 15.2 | 5,608 | 0.5 |
| Totals | 151.0 |
The resource distribution shows significant concentration in EPC 2327, which hosts approximately 93% of the total resource. Current modelling indicates potential for both:
- A small open-cut operation in EPC 2327
- A significant underground mining operation across the broader project area
Understanding Coal Seam Gas Well Data
Coal seam gas (CSG) exploration provides valuable data for coal resource estimation because both industries target the same coal seams, albeit for different purposes. CSG wells are drilled to access natural gas trapped within coal seams, but the drilling process generates extensive data about:
- Coal seam depth and thickness
- Coal quality parameters
- Gas content and composition
- Structural geology
By reinterpreting this data through a coal mining lens, Yari was able to significantly expand its understanding of the deposit without incurring exploration costs. This approach demonstrates the company's resource-efficient strategy and technical expertise.
The Yari Minerals coal resource upgrade highlights how innovative thinking can create substantial value in resource development projects, similar to how Solstice Minerals uncovered high-grade gold through strategic exploration methods.
Strategic Project Location with Infrastructure Advantages
The Rolleston South Coal Project benefits from its prime location in Queensland's Bowen Basin, a Tier 1 coal-producing region with established infrastructure:
- Only 40km from existing coal haulage rail on Aurizon's Blackwater Rail System
- Less than 300km from the Port of Gladstone, a major coal export hub
- Surrounded by established coal operations targeting the same formation
- Accessible by quality sealed state highways (Carnarvon and Dawson Highways)
This infrastructure access provides Yari with significant operational advantages and potential cost savings for future development.
High-Value Product Potential
One of the most significant aspects of the Rolleston South Project is the potential for portions of the resource to be upgraded from thermal to semi-soft coking coal, which commands premium pricing in global markets.
Analysis indicates the coal could support:
- High-grade export thermal coal (24.33-27.98 Mj/kg)
- Semi-soft metallurgical coal products with swell numbers of 2.5-4
The company's planned drilling program will include test work to assess and confirm these quality parameters, potentially enhancing the project's economic value significantly. This approach to value enhancement mirrors strategies seen in other mining operations, like recent gold and silver intercepts at promising prospects.
Accelerated Development Timeline
With the Yari Minerals coal resource upgrade completed, the company is moving quickly to advance the project:
- Finalising target areas for its inaugural drilling campaign in 2H 2025
- Planning site visits to optimise drilling locations
- Targeting resource categorisation improvement and confirmation of coal quality
- Conducting test work to assess metallurgical coal potential
The company's strategic approach focuses on rapidly advancing the project while maintaining cost efficiency, a crucial factor in the current resource development environment. In a similar vein, Inca Minerals recently gained majority control in a strategic takeover, demonstrating how resource companies are leveraging various approaches to enhance their market positions.
Why Investors Should Watch Yari Minerals
The Rolleston South Coal Project represents a compelling investment opportunity for several reasons:
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Resource Growth Potential: The 91% resource increase achieved without drilling costs demonstrates significant upside potential with further exploration.
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Infrastructure Access: Strategic location in the Bowen Basin with proximity to established rail and port facilities reduces future development costs.
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Product Optionality: Potential for both thermal and metallurgical coal products provides market flexibility and premium pricing opportunities.
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Experienced Management: The team has demonstrated their ability to create value through strategic data acquisition and interpretation.
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Clear Development Pathway: Well-defined next steps with inaugural drilling planned for 2H 2025.
As coal markets continue to show resilience, particularly for high-quality metallurgical coal used in steel production, Yari's expanded resource base and strategic location position the company for potential significant growth as it progresses toward development. This growth trajectory parallels other resource companies such as Vital Metals securing funding to advance their projects, further highlighting the current opportunities in the resource sector.
The Yari Minerals coal resource upgrade represents a major milestone for the company as it advances toward becoming a significant player in Australia's coal sector, following in the footsteps of successful explorers like Gorilla Gold with their impressive intercepts.
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