Totaling 2.4m, the coal seams are similar to the coal seams intersected by the International Coal/Hancock Prospecting joint venture in the adjacent EPC 2196, according to proactiveinvestors.com.au.

Fox Resources chairman Terry Streeter said the intersecting 2.4m of coal over a 4.4m interval is extremely encouraging and the company will continue to test the intersected coal seams with core.

"The continuity of the seams is promising for our continued drill program," Streeter added.

Drilling continues on the drill site at Fox 6, which is located about 4.5km southeast of International Coal’s BUN013P hole, while a twin of the Fox 6 hole is underway.

The initial drilling program, which includes drilling of up to 7 holes, is scheduled to be completed within three weeks.