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JORC resource upgrade at metallurgical coal project in Australia

Oilfield Technology,


Stanmore Coal Ltd. has completed a five hole drilling programme in the northern area of the company’s Belview underground metallurgical coal project. The result of this drilling has meant the JORC inferred resource for the project has increased to 322 million t, with a further exploration target of 204 million t – 306 million t.

The increased estimations were made with the application of the following assumptions:

  • An in situ moisture of 3.7%.
  • A maximum depth cut-off of 800 m.
  • A minimum seam thickness of 1.5 m.

Raw coal quality testing has been completed on the core samples taken from all five holes. Initial results indicate that the quality is typical of other metallurgical coals produced from coal seams in the region, and are consistent with Stanmore Coal’s strategy of producing a primary metallurgical coal and a secondary PCI product.

The company expanded operations at its Belview project into the northern area of the project, where the coal is shallower. Commenting on the increase in the project’s resource base, managing director, Nick Jorss, said, “The large resource base demonstrates the potential to develop a major metallurgical coal mine at Belview, which is surrounded by operating metallurgical and PCI coal mines.”

Well positioned

The company is hoping to make the most of the current weak market for coal. Jorss continued in his statement to say that, “The current downturn in the commodity cycle presents us with an opportunity to lock in a low cost base for the Belview project. Reducing project capital and operating costs will also improve the company’s prospects of attracting strategic partners.”

The project is located on the existing Blackwater rail line, which services the coal ports of Gladstone. Belview is therefore well positioned to secure low cost rail and port capacity.

Adapted from press release by Sam Dodson

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/13082013/australian_coal_project_resource_base_increases_309/

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