The preliminary resource estimate follows a robust series of drilling and exploration efforts at the site.
The report, which is compliant with the joint ore reserves committee, found that 92% of the estimates are in the measured and indicated mineral category.
Evergreen Energy executive chairman Ilyas Khan said the estimated size of the coal deposits were initially 200 million tons.
"Both the lignite deposit at Lochiel, Australia, and the traditional sub-bituminous deposits at Penrhyn are capable of being upgraded via Evergreen’s K-Fuel technology," added Khan.
Evergreen will work with WPG to continue to expand the resource base, develop a mining plan and to design and build a coal upgrading plant.
Southern Coal CEO Wayne Rossiter said the exploration potential of the sub-bituminous coal resources in Penrhyn could double the resource level at the prospect.
"In combination with the Lochiel North Deposit, which has a JORC compliant resource report of 270 million tonnes of lignite, SCH has an asset base of just over 600 million tonnes suitable for the K-Fuel process," said Rossiter.
