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Tennyson

Project Overview

Location: Bowen Basin

Nearest Port: Gladstone

Rail Line: Blackwater

Mines in Region: Kestrel

Coal Type: Thermal

Mining Method: Underground

Project Details

In November 2012 the Company announced an initial JORC Inferred Resource of 161 million tonnes (Mt) within the Aries Seam for the Tennyson Underground Thermal Coal Project (“Tennyson”) at EPC1186.  The Aries seam is the uppermost seam within the Rangal Coal Measures and was the main target of this year’s exploration program.  The Rangal Coal Measures are well understood and have been historically mined throughout the Bowen Basin. A total of 14 seams were intersected across the project area.

The 2011-2012 drilling program has allowed the identification of 161Mt of high energy thermal coal within the Aries seam from a depth of 150 metres to 480 metres. In establishing its initial JORC estimate Stanmore Coal has excluded coal within a 2km buffer zone around the township of Emerald. 

A total of 24 holes (12 chipped and 12 cored) are located in the Tennyson project area, 15 of which have been used to construct the geological model.  The 2.5m thick Aries Seam is suitable for underground mining.  Intercalated stone bands are negligible and thus no seam splitting has been recognised.  The seam roof and floor are typically characterised by carbonaceous siltstones and fine-grained sandstones.

Whilst the drilling program identified numerous intersections of coal seams below the Aries seam, within the Burngrove, Fairhill, German Creek and Freitag formations, insufficient intersections are available from the 2011-2012 drilling program to support a JORC resource estimate within these measures. 

There is a substantial area to the east of the Gregory Highway but within the project tenement area which was not drilled as part of the 2011-2012 exploration program.  The company believes this area to be prospective.

Table 1. Coal Seam Details (Borehole Intersections)

Seam

Mean Thickness (m)

Maximum Thickness (m)

Minimum Thickness (m)

Number of Intersections

Minimum Depth (m)

Maximum Depth (m)

JORC Inferred (Mt)

Aries

2.49

3.00

1.69

8

150m

480m

161#


Aries Seam Coal Quality

Coal quality work undertaken from 8 core samples available from holes in the 2011-2012 drilling program and a single Queensland Department of Mines and Energy (DME) hole, suggests that the Aries Seam is capable of producing a low ash, low impurity, high energy thermal coal.   Average raw ash of 14.6% inherent moisture of 10% and raw energy of 5,739 kcal / kg (air dried) was achieved across the entire inferred resource. Washability results indicate the product will be a high energy, low ash thermal coal.

Table 3. Aries Seam Product Coal Estimates (average across deposit)

Results

Thermal Coal

Yield

75%

Ash

ad

9.5%

Volatile Matter

ad

31.0%

Fixed Carbon

ad

 50.7%

Total Sulphur

ad

 0.26%

Specific Energy

kcal/kg ad

 6,210

 (ad – air dried)

Strategic Cropping Land Considerations

Approximately 80% of the project area is covered by irrigated cotton producing farmland.  Stanmore Coal acknowledges the need for mining activities to be undertaken within a framework which recognises the need to preserve key areas of land for agricultural activities.  The company believes that modern underground mining techniques can allow mining to be conducted in conjunction with surface cropping.

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