The resource was identified after drilling was conducted in an area to the west of the planned pit at The Range and the intersections occurred outside of the tenements’ existing 229Mt resource.
To date, a total of 14 holes had been drilled at the tenement, identifying intercepts of up to 11.9m of coal to a depth of 189m.
The resource has the potential for low-strip, shallow coal to be processed in the early years of production.
Stanmore Coal managing director Nick Jorss said the pleasing results yielded from the drilling project at The Range had the potential to further improve the economics of the project.
“Depending upon weather, we will continue drilling with the aim of defining an additional JORC-inferred resource in this western area in the first quarter of 2012,” Jorss said.
Stanmore recently extended the mine life for The Range project to 26 years, up from 18 years, after completing the project’s prefeasibility study.
The proposed mine is scheduled to begin production in 2015, with full production of 5Mt per annum likely for 2017.