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The results of this exploration will be used to underpin a feasibility study on the economic potential of the project, it said.
“The company is actively pursuing existing infrastructure solutions that could provide the potential to fast track Wotonga into production,” the company said.
The company is planning to restart mining at Isaac Plains – which lies east of Moranbah – in the first half of 2016 at initial production rate of 1.1 million tonnes per annum.
The Isaac Plains project has open cut JORC resources of 5 million tonnes and a total resource of 30Mt.
Stanmore bought MDL 135 and the rights to a portion of the Wotonga MDL 137 project from Peabody Energy subsidiary Millennium Coal.
The total consideration of $7 million is comprised of an upfront cash payment of $2 million and two additional deferred payment mechanisms – $2 million upon grant of a mining lease and $3 million payable as a $1 royalty per tonne sold.
Wotonga was extensively explored by previous owners in the 1980s, with over 200 exploration holes drilled within the lease boundary.
The Leichhardt seam subcrops in the west with the seam dipping gently to the east. Importantly the shallow depth to coal results in attractive in-situ strip ratios starting at below 5:1.
Historical coal quality and knowledge of coal products from nearby operating mines indicate that Wotonga is likely to produce a medium volatile coking coal product with secondary coking or thermal products, resulting in a high total product value.
