Reserves and Resources

Isaac Plains Underground

Stanmore Coal continues to assess potential for an underground extension in the eastern portion of Isaac Plains Mining Lease.

The area contains more than 30Mt of JORC Compliant Measured and Indicated Resources. Approximately 13Mt ROM (Economically Recoverable Resource) may be extracted.

Stanmore has completed the Isaac Plains Underground Bankable Feasibility Study.  This study confirms a positive business case for the new underground mine with potential production ramping up to an average of 1.2 million saleable tonnes per annum from year two to the production plan. The quantum of product tonnes forecast for the Underground, combined with the open-cut sources, exceeds the current coal handling preparation plant (CHPP) and contracted port capacity. Stanmore Coal is prioritising its highest margin ROM coal at Isaac Plains East and the Isaac Downs Project to maximise returns to shareholders.  Accordingly, the Isaac Plains Underground Project will be deferred until additional port and CHPP capacity are secured or until mining at Isaac Downs Project is largely complete, subject to prevailing business conditions.

The Range

The Range project is located in the Surat Basin where exploration activity up to 2012 has identified a total JORC compliant coal reserve of 287Mt.  Of this, 184Mt were within the indicated category.

A definitive feasibility study covering geology, mining, and cost structures confirmed The Range as a 5Mtpa high quality, export grade, thermal coal project. In order for project development to be linked to the coal export at Port of Gladstone, a new railway link is required to be extended between the Moura line and Wandoan area. Until there is certainty as to timing of the rail solution, Stanmore will continue with environmental monitoring and other on-site activities to maintain compliance with approvals. An environmental authority application and a mining lease application are currently on-foot.

A Coal Reserve was declared in June 2011 that demonstrated Marketable Reserves of 94.2 million tonnes.

Location:           Surat Basin (24km south-east of Wandoan)

Coal Type:        Thermal Coal

Nearest Port:    Gladstone

Rail Line:           Missing Link to Moura and Gladstone


Reserves and resources
Project Marketable Coal Reserve Recoverable Coal Reserve | Measured Resource Indicated Resource Inferred Resource Total JORC Resource
Isaac Plains 0.7 1.1 | 25.2 16.0 5 46
Isaac Plains East 7.8 10.2 | 9.8 8.0 4 22
Isaac Plains Underground      9.4 12.9 | 0 0 0 0
Isaac Downs 17.9 25.9 | 24.7 11.5 0 36.2
Isaac South - - | 11.9 14.5 25 52
Clifford - -   0 200.0 430 630
The Range 94.2 116.6 | 18.1 187.0 81 286
Mackenzie - - | 0 25.7 117 143
Belview - - | 0 50.0 280 330
Tennyson - - | 0 0 139 139
Lillyvale - - | 0 0 33 33
Total 130.0 166.7 | 89.7 512.7 1114 1717

Refer to competent person's statement in the following ASX Announcement: