The resource statement certified by Xenith Consulting brings the project’s total JORC-compliant resource to 490.5Mt.
Bandanna said the new resource upgrade was completed after drilling was conducted on the Springton domain of the Aries 2 seam, which had been the focus of drilling since July 2011.
The massive increase in the indicated resource could now be fed into the advanced mine design as part of the project’s ongoing definitive feasibility study.
In addition to the A2 seam, Bandanna identified 29.3Mt of inferred resource in the Castor seam within the Springton South domain.
Bandanna’s outgoing managing director Ray Shaw said the increase in Springsure Creek’s resources put the project on a world-class scale.
“This increase in resources and in particular the marked rise in indicated resources, not only defines Springsure Creek as a world-class thermal coal resource project but showcases Bandanna’s resolve to consistently meet its exploration, environmental and engineering targets and timelines and for the project to remain on course for coal production in FY2014,” Shaw said.
Meanwhile, Bandanna’s board has approved the 2012 drilling budget for the Springsure Creek tenement, allowing for two drill rigs to be set up to complete 80 drill holes.
One rig will enable the identification of measured resources, which would underpin proven and marketable reserves for the first 10-15 years of longwall production.
The second rig will maintain the expansion of indicated resources to the southeast and southwest of existing indicated resources and probable reserve within the project area.
The Springsure Creek project is projected to consist of two longwall operations targeting 11Mt per annum of run of mine thermal coal over an approximate 20-year mine life.
Bandanna has secured port capacity for the Springsure Creek project via 4Mtpa of export capacity at the Wiggins Island coal export terminal in Gladstone.