In August 2004 Exploration Licence (EL6288) was issued over the Moolarben coal deposit in the Western Coal Fields of NSW. Two additional Exploration Licences (EL 7073 and EL 7074) have also been subsequently Moolarben Coal Mines Pty Limited (MCM), a wholly owned subsidiary of Felix Resources Limited (FRL), a publicly listed Australian company, is the holder of EL 6288.

Two additional Exploration Licences (EL 7073 and EL 7074) were subsequently granted to MCM in February 2008. These ELs adjoin EL6288.

The Moolarben Coal Project (MCP) area is located 40kms north-east of Mudgee and 25kms east of Gulgong, refer to the locality plan.  It covers an area of about 11,000Ha (110 sq km) comprising rural land, private and public lands and some public infrastructure.

During the period November 2004 to September 2006 MCP carried out exploration drilling comprising some 125 bore holes.  Core samples recovered from the exploration program are tested and analysed. Drilling results are modelled, enabling the preparation of the resource data.

The project layout, open cut and underground resource areas have been developed from the limits defined by the exploration drilling and within the constraints imposed from surface, environmental, community and government considerations.  The development of the identified resources suits a staged development approach.

Since granting of EL6288 in August 2004 baseline environmental studies have been undertaken to determine the existing flora and fauna, ground and surface water, air quality and acoustic environs in the project area. These baseline environmental studies form the basis for the preparation of Environmental Assessment Reports required for Project Approval and the ultimate development of the resources.

The Stage 1 Environmental Assessment Report was lodged with the NSW Department of Planning in September 2006. Approval to Stage 1 of the MCP (Stage 1 Approval) was granted out of the area of EL 6288 by the Minister for Planning on 6 September 2007 as a Major Project under Part 3A of the Environmental Planning & Assessment Act 1979 (EPA Act) (Stage 1 Approval).

A Major Project Application for Stage 2 of the Moolarben Coal Project was lodged with the NSW Minister for Planning on 1 May 2008. The preparation of the Stage 2 Environmental Assessment Report is currently being prepared with a view to gaining Project Approval and developing Stage 2 of the Moolarben Coal Project.