Yari Minerals has kicked off its inaugural drilling at the Rolleston South Coal Project, confirming thick, continuous coal seams and promising coal quality that could upgrade its resource status.
- Four drillholes completed totaling 1,287.9 metres
- Thick, laterally continuous coal seams confirmed with no structural faults
- Initial coal quality tests indicate clean, high-yield coal with semi-soft metallurgical potential
- Drilling supports potential upgrade of 190.1 Mt JORC Inferred Resource to Indicated status
- Further results and geological updates expected through Q1 2026
Inaugural Drilling Campaign Advances Rolleston South
Yari Minerals Limited (ASX, YAR) has marked a significant milestone with the commencement of its first drilling campaign at the Rolleston South Coal Project in Queensland’s Bowen Basin. This initial phase, completed during the December 2025 quarter, involved four drillholes totalling nearly 1,300 metres, aimed at validating the existing geological model and assessing coal quality.
The Bowen Basin is one of the world’s most established coal regions, and Rolleston South benefits from proximity to operating mines and established infrastructure, including rail and port facilities. The project currently holds a JORC (2012) Inferred Mineral Resource of 190.1 million tonnes, with the drilling designed to confirm seam continuity and support an upgrade to Indicated status.
Geological Confidence Strengthened
Early results from the drilling campaign have been encouraging. The program intersected multiple thick coal seams, including the key A, B, and D seams within the Bandanna Formation. Notably, no structural faulting was encountered, which significantly reduces geological risk and bolsters confidence in the lateral continuity of the coal seams across the project area.
Seam thicknesses of up to approximately three metres were recorded, with strong correlation between drillholes. These findings align with, and in some cases exceed, the existing geological model, providing a robust foundation for resource estimation and future development planning.
Promising Coal Quality Indicators
Alongside geological validation, Yari Minerals has initiated comprehensive coal quality testing. Preliminary laboratory results indicate clean, high-yield coal with low ash content, suggesting the potential for a semi-soft metallurgical coal product rather than solely thermal coal. This distinction is significant given the stronger pricing and demand dynamics associated with metallurgical coal in global markets.
Ongoing testwork includes proximate analysis, washability testing, petrography, and crucible swell number assessments. The full suite of results, expected throughout the first quarter of 2026, will further clarify the product characteristics and variability across seams.
Strategic Location and Next Steps
Rolleston South’s strategic location, just 20 kilometres from operating mines and within reach of the Blackwater rail system and Gladstone export infrastructure, positions it well for future development. The project benefits from sealed road access, nearby power infrastructure, and a skilled regional workforce, all critical factors for advancing towards production.
While wet ground conditions temporarily delayed completion of some drillholes late in the quarter, Yari Minerals plans to resume drilling as soon as site conditions permit. The company anticipates progressively releasing further drilling results, coal quality data, and updated geological interpretations throughout Q1 2026, aiming to support a resource upgrade and inform subsequent technical and economic evaluations.
Financial Snapshot
During the quarter, exploration expenditure was $0.772 million, with no substantive mining or development activities reported. Yari Minerals held $1.275 million in cash as of 31 December 2025, maintaining a solid financial footing to support ongoing exploration and evaluation efforts.
Bottom Line?
Yari Minerals’ early drilling success at Rolleston South sets the stage for a potential resource upgrade and further project advancement in 2026.
Questions in the middle?
- Will the remaining drillholes confirm the initial geological and coal quality findings?
- How might the potential upgrade to Indicated status impact project valuation and financing options?
- What are the implications of semi-soft metallurgical coal potential for market positioning and demand?