Drilling of 49 rotary mud and partially cored holes totalling 1443 m (of which only 20 holes penetrated into the top of the basement) has been undertaken at the eastern margin of the Eucla Basin to further outline an occurrence of Tertiary lignite in the Chundie Swamps area, and to obtain representative lignite core samples for coal quality / coal characterisation analyses. The aim of the project was to determine if sufficient reserves of high ash lignite exist to support a viable coal beneficiation and conversion process for generating commercial quantities of liquid synthetic fuel. The results obtained so far are regarded as encouraging, having identified many bedded lenses in the Pidinga Formation that contain large tonnages of lignitic material having an average 60% ash content, within which thinner, more pure lignite seams also exist. The oil shale potential of the formation was tested by distillation where it appeared warranted; the highest hydrocarbon yield was 48 litres per tonne. Further similar drilling and coal evaluation is recommended to better understand the resource, and investigation of anomalous logged radioactive horizons in sediments of this area is also warranted for possible uranium targets.