Coal news and updates

Stanmore Coal secures $680,000 funding for Queensland coking coal project from Japanese firms

Stanmore Coal and Taiheiyo Kouhatsu Inc., supported by the Japan Oil, Gas and Metals National Corporation (JOGMEC) have signed an exploration support agreement which provides funding for resource drilling at Stanmore Coal’s Belview Coking Coal Project in Queensland.

The agreement provides Stanmore with $680,000 to undertake the drilling of additional core holes and associated coal quality analysis within the Belview Project area.

This drilling program is targeting an upgrade to the project’s JORC inferred resource.

Under this funding arrangement, Taiheiyo is entitled to purchase up to 100,000 tonnes of coal over the first three year period of Belview operation at $2 per tonne discount to the prevailing Japanese settlement price.

Drilling associated with the agreement has commenced and is expected to be concluded in the first quarter of 2014.

The Belview Project is a large scale, metallurgical coal project located in the heart of Queensland’s Bowen Basin, and currently boasts 322 million tonne JORC inferred resource with an additional exploration target of between 204 and 306 million tonnes.

Securing funding support funding for Belview allows Stanmore to maximise exploration undertaken while preserving the Company’s cash reserves, and reinforces the attractiveness of the Belview as a major coking coal project.

Source: www.proactiveinvestors.com.au