The facility is located within the Buck Creek mining complex in the Western Kentucky region of the Illinois Coal Basin.

It features two continuous core holes and five spot core holes, which will help Paringa with the initial engineering design and orientation of the proposed mine portal.

Paringa said Buck Creek No.2 Mine provides potential for low capital expenditure due to the shallow coal seam depth at the mine portal and the ability to use the planned infrastructure at the adjacent Buck Creek No.1 Mine.

As part of the pre-feasibility study for the first mine, Paringa has also started optimisation studies into the coal preparation process and location.

Plans also include the layout of the important infrastructure and the barge load-out facility.

The company said it continues to go ahead with its leasing program which includes the expansion of the western part of the Buck Creek Mining complex area.

Paringa Resources chief executive officer David Ga said: "The Buck Creek No.2 drilling program will provide additional data that will assist us in engineering design of the planned mine portal as part of the technical study for Buck Creek No.2 Mine.

"We have an exciting six month period with the PFS results for Buck Creek No.1 and results from the Buck Creek No.2 Mine technical study."