Located midway between the Company’s Paulsens and Ashburton gold projects, the Kazput discovery has been made during reconnaissance drilling, which focused for gold targets.
Initial exploration suggests the coal target could be between 340 to 615 million tons.
Northern Star managing director Bill Beament said the coal deposit discovery on the company’s Pilbara tenements offered significant potential for shareholders.
"Initial indications are that this is a potentially valuable find with the scope to emerge as a large-scale thermal coal deposit," Beament added.
"While being disciplined in our spending, we propose to establish a Joint Ore Resources Committee-compliant resource estimate and undertake the preliminary preparations for a corporate solution to potentially monetise our discovery."
About A$2m (US$1.89m) has been allocated to undertake sufficient drilling to establish the maiden resource.
Along a 7km strike, the company intersected thick thermal coal of up to 65m in eight holes, of which four ended in coal.
