THE BOURSE WHISPERER: Stanmore Coal (ASX: SMR) has completed a further review of the company’s The Range project, in the Surat Basin, Queensland.
Project location. Source: Company announcement
The review followed the company receiving final laboratory and geological modelling results from a 2012 drilling program and has resulted in the certification of an initial 18 million tonne JORC-compliant Measured Resource.
The review also resulted in a 10 per cent increase in Total JORC Resource (Measured, Indicated + Inferred).
The company said the Measured Resource has given it an increased level of knowledge and certainty for the first three years of production.
Stanmore is now modelling the impact of the resource upgrade on JORC Reserves and the project economics to feed into a Bankable Feasibility Study.
This increase is separate to the 60 to 70 million tonnes additional Exploration Target in the area west of the planned pit at The Range.
Commenting on the increase,
“This increased result in The Range is another positive step on the path towards production at our first class thermal coal deposit at The Range,” Stanmore Coal managing director Nick Jorss said in the company’s announcement to the Australian Securities Exchange.
“Certification of the first Measured Resource means that we now have a very high level of knowledge and certainty over the first years of production.”
The Range project is located south east of the Wandoan township, within the Surat Basin.
The project contains an initial JORC Marketable Reserve of 94 million tonnes from a JORC Total
Resource of 287 million tonnes (18Mt Measured, 187Mt Indicated plus 82Mt Inferred) of export quality thermal coal.
Stanmore Coal said it anticipates first coal from the project in 2016 subject to statutory approvals being attained and completion of third party infrastructure.