Stanmore Coal has established a JORC Indicated Resource of 25.7 million tonnes and a 45% increase in the Total JORC Indicated plus Inferred Resource to 143.2 million tonnes at the Mackenzie deposit in the Bowen Basin of Queensland.

The company has also defined a 95 million tonne Initial JORC Inferred Resource at Belview Coking Coal Project.

Recent results of an ongoing coal quality program at Mackenzie indicate considerable variability in yield across the deposit. Optimization work is underway to address beneficiation and metallurgical issues identified.

Drilling and test work continues to investigate most likely economic targets within the 27 kilometers long project area.

Since the August 2010 JORC Resource review at Mackenzie a further 53 holes have been drilled and the current model now includes a total of 80 holes.

The coal sequence comprises two main coal seams being the Leo and Aquarius seams within the Burngrove Formation.

The Leo seam achieves a maximum cumulative thickness across three plies of five meters and averages 1-2 meters.

The Aquarius seam has a maximum cumulative coal thickness across five plies of 3.6 meters and averages 2.2 meters of coal over a maximum total interval of 4.5 meters.

The seams strike in a general North South direction over 27 kilometer strike length, and dip towards the west at about 2 degrees. The main coal seams occur at depths of between 10 and 110 meters.

Mr Nick Jorss MD of Stanmore said that “whilst the results of this year’s program are more varied than those from last year there remains potential for development of discrete zones of coking coal to meet on-going demand from a supply limited market."

The 2011 drilling program has allowed Stanmore to identify areas with the highest potential for economic development and the company said the 2012 work program will now be directed towards further testing of these zones.

(Sourced from www.proactiveinvestors.com.au)