The company said five drill holes have already been drilled and a sixth is underway.

Preliminary results for core samples from three of the five holes encountered coal at depths of about 60-90m below the surface and two main coal seams ranging between 3-10m each, the company added.

GulfX is currently conducting a full analysis for composited coal seam core samples.

The company also said it is continuing to work with landholders, relevant government agencies and the local community in the Clinton area and other areas where subsequent phases of the drilling program are planned.

Since beginning the Syngas project in early June, 15% of the company's overall drilling program targeting 37 drillholes has been completed.

GulfX aims to produce gas and clean diesel from SA lignite deposits after acquiring mineral exploration rights from its takeover of Syngas Energy in March.