An initial coal mineralisation target of 110-170 million tonnes over the 3500-hectare exploration target area has been established and initial coal quality testing points to the potential for a coking product with raw crucible swell number (CSN) values of up to 7.5.

Stanmore Coal managing director Nick Jorss said: “The identification of coking properties in our coal deposit ideally situated on the rail line to Gladstone is significant.

“This is the first step in an extensive drilling program planned at the vast Mackenzie River project.

“Our priority now is to prove up a significant initial JORC inferred resource and then move quickly to project development to capitalise on the structural shortages in the coking coal market which show no signs of abating.

“We will also look to identify further economic targets within the various other coal seams that are known to occur across the 512 square kilometre project area.”

This exploration target area has been modelled by Xenith Consulting based on

26 completed Stanmore coal drillholes and historical holes within the western area of the Mackenzie tenements, and relates to a strike distance of approximately 24km, north and south of the Capricorn Highway.

The exploration target is based on a net coal thickness of 2-3m and an average coal relative density of 1.60m.

The Aquarius seam has been intersected at depths ranging from 30-100m within the exploration target area and, based on the core logging and geophysical logs, is composed of interbedded coal and tuffaceous stone bands over a total 3-4m sequence.

The seam dips gently towards the west with the interpreted subcrop line striking north within the exploration target area.

The coal bands have been named separately and there appears to be five distinct coal plies with intervening stone bands ranging from 0.2-0.5m in thickness.

Based on the raw coal quality data received to date, the coal plies show a weighted average raw ash range of 30-40%, and an average raw CSN range of 3-5 with values up to 7.5, and air-dried moisture ranges of 2-3%.

CSN values on the washed product are expected to be higher and will be known once the initial washability analysis is completed.

Drilling and laboratory work is continuing with the aim of establishing an initial JORC inferred resource within the Aquarius seam in the next three months.

In addition, 13 holes have been drilled in the eastern project area (including one cored hole) targeting the coal seams within the Fair Hill Formation.

Drilling of this formation in the eastern area has to date intersected thick, but quite dirty, coal seams only.

Additional drilling and coal testing is planned in an attempt to identify economic targets within the Fair Hill Formation.

The Mackenzie River project is ideally located for export as it lies on the rail line to Gladstone between the Ensham and Curragh operating mines, and adjacent to the Washpool project being developed by Aquila Resources which is also targeting the Burngrove Formation, Jorss said.

Stanmore’s shares were down 1c to 68c in morning trade.