In 1993 an exploration drilling program was undertaken jointly by The Department of Mines and Energy (MESA) and ETSA Corporation (ETSA) over areas considered prospective for coal within the vicinity of the existing infrastructure of the Leigh Creek coal mine. This program resulted in the discovery of an additional coal-bearing basin of Triassic age, which is located approximately 10 kilometres south of the current mining operation, and covers an area of approximately 3 square kilometres. This report details all subsequent drilling, geophysical logging, coring and analytical work that has been undertaken by MESA/ETSA to evaluate the deposit, and includes discussion of the geology, coal occurrence, and coal quality for the deposit. An indicated resource of 21 million tonnes of coal has been estimated within the Lobe E Coal Deposit, with an additional inferred resource of 2 million tonnes of coal thought to exist as a shallow bridge joining the main coal zone/seam in Lobe E with the main coal seam in the nearby Copley Basin (Lobe A). The coal, which is Triassic in age and of low rank, is comparable to the coal mined at Leigh Creek (Lobe B), with the Lobe E coal generally higher in ash, and significantly higher in sulphur ie. 5% (db) compared to 0.3% for Lobe B coal. The deposit is basin-like in shape with the coal occurring at depths ranging from 10 to 120 metres, with dips varying from 5 degrees to 13 degrees towards the basin centre. The coal occurs within the lowest third of the Triassic sequence, which consists of predominantly dark grey carbonaceous mudstone with coal and occasional sandstone interbeds. The coal reaches a maximum thickness of 7.8 metres in the northeast, and averages a cumulative thickness of 5.2 metres for the deposit. In the northeastern half of the basin the Triassic sediments are unconformably overlain by a fining upwards sequence of sandstone and mudstone of Jurassic age. Moderately saline groundwater, which was identified by exploratory drilling within the sandstones of the lower Triassic sequence and in a Jurassic sandstone unit, was further investigated by ETSA through the hydrological consultants Dames and Moore. A program of monitoring and pump testing of the Jurassic aquifer has identified a sustainable resource of industrial water.