Stanmore Coal eyes coal JORC Resource within months at Tennyson in Bowen Basin

Wednesday, 06 Jul 2011 | By ProactiveInvestors

Stanmore Coal continues to intersect multiple coal seams at the Tennyson project in the highly prospective Bowen Basin, which contains the largest coal reserve in Australia and one of the world's largest deposits of bituminous coal.

Intersections at the Aries seam averaged 2.5 metres, with exploration defining the extent and continuity of the Corvus and other seams which have been intersected. The outcome for Stanmore from the drilling is support for the upper end of the 220 million tonnes to 290 million tonnes exploration target at the project, where the company aims to define a coal Inferred JORC Resource in the Aries seam in the September 2011 quarter.

Stanmore is nearing completion of the sixth of an initial eight hole program at Tennyson which the company said is exceeding expectations. Modelling of recent results indicates that the Aries seam subcrops at around 150 metres and dips to the east, south and south-west to a maximum depth of around 490 metres.

Adding to the potential of Aries, Stanmore said the seam may have a thickness in excess of 2.1 metres over 75% of the Tennyson lease area.

Stanmore is targeting underground coking and export thermal coal at Tennyson with the exploration target of 220 million tonnes to 290 million tonnes of low to moderate ash export quality thermal coal.

According to the company the Corvus Lower Seam is believed to have potential for coking coal properties and is not included in the current target. Adding potential to the overall project dynamics is the proximity to infrastructure, with the project located adjacent to an existing railway line to Gladstone.