Stanmore starts tests

DRILLING DOWN: The Belview tenement is 10km out of Blackwater. cont
DRILLING DOWN: The Belview tenement is 10km out of Blackwater. cont

IN THE ZONE: Stanmore Coal commences drilling at its Emerald tenement. cont

STANMORE Coal has commenced drilling at its Emerald tenement to test a thermal coal target up to 290 million tonnes.

In a statement to the Australia Stock Exchange last week, the company indicated it would drill eight partially-cored drill holes targeting the Rangal and German Creek coal measures on EPC1168 which covers an area of 131sq km on farming land less than 15km north of Emerald.

“Drilling has commenced within EPC1168. Watsons Drilling has completed all drilling to date at our Mackenzie River project and has been reappointed for 2011 to complete the Emerald and Mackenzie River programs,” the statement said.

The Mackenzie River coking coal project, between Curragh and Ensham mines, has suffered from flooding in the region.

The tenement already has a JORG inferred resource of 99 million tonnes and the company is looking to establish initial marketable reserves to satisfy a key requirement of its allocation from the Wiggins Island Coal Export Terminal agreement.

“Stanmore Coal is monitoring ground conditions in advance of recommencing its extensive drilling campaign at the Mackenzie River coking coal project,” the statement said.

“An additional rig has been secured which, subject to weather conditions, will mobilise to site by late February and commence drilling in early March.”

Stanmore’s determination to prove up the Emerald tenement is boosted by the close proximity of the Blackwater rail line to the coal export terminal at Gladstone. It also will begin drilling at its Belview tenement near Blackwater, with a program of eight holes.

A recent coal seam gas well drilled on the tenement confirmed the presence of multiple coal seams at Belview, 4 km east of the historic Leichhardt mine, operated by BHP in the 1960s to 1980s.

Stanmore is a coal exploration and development company with a number of prospective tenements in the Bowen and Surat basins and is targeting production of seven million tonnes per annum of open pit coal by 2015. It holds 100% interest in seven coal project areas covering more than 1080sq km.

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