(MENAFN - ProactiveInvestors - Australia) Stanmore Coal (ASX:SMR) has defined a maiden JORC inferred resource of 161 million tonnes with an additional exploration target of 65 to 120 million tonnes at its Tennyson underground coal project in the Bowen Basin.
A total of 14 seams were intersected across the project areas and laboratory tests confirm the potential to develop a low ash, high energy, export quality thermal coal project.
Stanmore has planned a concept study for the first half of 2013 to evaluate the economic viability of underground mining approach.
On the basis of historical geological data reviewed in May 2010, Stanmore previously established an exploration target of between 220-290 million tonnes of high energy thermal coal with the identification of 161 million tonnes of high energy thermal coal within the Aries seam.
A total of 24 holes with 12 chipped and 12 cored holes were drilled in the Tennyson project area. 15 of those 24 holes were used for the geological model.
Even though the drilling program identified numerous intersections of coal seams below the Aries seam, within the Burngrove, Fairhill, German Creek and Freitag formations, there were insufficient intersections available from the 2011-2012 drilling program to support a JORC resource estimate within these measures.
Stanmore has established a further exploration target within the Aries seam east of the Gregory Highway, which was not drilled as part of the 2011-12 exploration program.
The Tennyson project is yet another milestone for Stanmore, which now has an impressive pipeline of coal projects in Queensland.
It is nearing the completion of a bankable feasibility study of The Range project in the Surat Basin that would export 5 million tonnes per annum of thermal coal. A supplementary EIS is also well progressed and a mining lease is likely to be granted in the first half of next year.
It is also progressing the Belview project in the Bowen Basin, where a recent acquisition is improving the project economics. A
First coal is planned from The Range in 2016 and from Belview from 2018.
Stanmore has also secured 5 million tonnes per annum of capacity in the WEXP1 by executing a capacity commitment deed and has also entered into an agreement with Adani for an additional 12 million tonnes per annum of capacity at Dudgeon Point.
Additionally, it has also got on board Sprint Capital as a cornerstone partner, which now has 20% stake in the company and will help with funding of acquisitions, development of infrastructure and arrangement of take or pay guarantees.