Exploration drilling by Utah Development Co. during 1973 and 1974 in the area covered by EL 125 has outlined at least 2,000 million tonnes of medium quality steaming coal, of a quality considered to be comparable to that for coal from ETSA's Leigh Creek deposits. Following discussions between the Premier of South Australia and senior representatives of Utah Development in September 1974, a preliminary feasibility study was initiated on the use and mining of coal from the Lake Phillipson deposits. In this study, four options were to be examined: 1. Supply of 10 million tonnes per year of steaming coal to a 2,000 megawatt power generating station located in South Australia; 2. Supply of coal as a feedstock to a gasification or liquefaction plant for processing to gaseous or liquid fuels; 3. Supply of steaming coal to the Electricity Trust of SA to supplement the future requirements for electricity generating fuel to satisfy domestic growth in power consumption; 4. Export as steaming coal. From examination of these options, the use as a steaming coal within SA is considered to be the most likely direction for the initial development of the Lake Phillipson coal deposits. Future field investigations and studies by Utah Development related to these deposits should thus be dictated by a time schedule for development connected to a definite market demand. The possible mine would be an open-cut operation with stripping of overburden probably by a combination of bucket wheels and draglines. As the coal seams lie within four sub-artesian groundwater aquifers, a major dewatering system would be required to suit the mining excavation. The feasibility study has considered the infrastructure requirements associated with a mining operation such as township, power supply and other services. Transport of coal to Port Augusta has been considered using the standard gauge rail line now under construction by Australian National Railways from Tarcoola to Alice Springs.