ICX is nearing the release of a maiden coking coal resource near Bundaberg in Queensland.
The coking coal price has recovered somewhat to around the $170 a tonne.
The project in the Maryborough Basin had an exploration target of between 28- 40 million tonnes.
Assuming a maiden resource of 28 million tonnes would deliver a gross in situ value of $4.7 billion.
Sweetening the story is Gina Rhinehart's Hancock Prospecting is a joint venture partner / farmin to the ICX's Bundaberg Project EPC 2196.
Hancock is spending $3 million to earn in to a 51 per cent interest in the project.
Earlier exploration results at the project displayed good continuity of the coal seams.
However, the real kicker is the coal has been tested and results received to date indicate a crucible swelling number (CSN) of eight to nine. (1 is low, 10 is very high quality).
On these numbers (and less than 10% ash) would rank ICX's project among the highest grade coking coal in the world. Steel mills in Asia would likely be very interested in coal of this quality.
All this coal is within range of infrastructure including rail and port.
We would not be surprised to see the Bundaberg project and the Consuelo Project become the mainstays of ICX's coal portfolio.
The Consuelo tenements are located just 10 to 20 kilometres from Xstrata's open pit high grade thermal coal mine at Rolleston - one of the lowest cost operating open pit mines in Australia.