Slide 1: Coaltrans Conference: Developing The Range Project
For personal use only Coaltrans Conference Developing The Range Project Surat Basin, Queensland August 2011
Slide 2: Important information
Important information For personal use only This document has been prepared by Stanmore Coal Limited (“Stanmore Coal”) for the purpose of providing a company and technical overview to interested analysts/investors. None of Stanmore Coal, nor any of its related bodies corporate, their respective dire
Slide 3: Stanmore Coal overview
Stanmore Coal overview For personal use only • Coal exploration and development company • Currently drilling a significant, fully funded program to test exploration targets • All projects 100% owned • 328 Mt Total JORC resource (151Mt Indicated Resource + 177Mt Inferred Resource) • 94Mt Marketable C
Slide 4: Stanmore Coal ownership status
Stanmore Coal ownership status For personal use only Key Metrics ASX Code SMR Shares on issue 127.2m Retail, Private Current share price1 A$0.85 and Other Board and 44% Mgmt Market Capitalisation A$108m 33% Cash Position2 A$18.2m (no debt) Shareholders St Lucia Resources 24.9% Comet Vendors Stephen
Slide 5: Strong Board and Management Team
Strong Board and Management Team For personal use only NEVILLE SNEDDON NICK JORSS STEPHEN BIZZELL VIV FORBES Chairman Managing Director Director Director Mining engineer with 37 years experience 20 years in engineering, project Extensive experience in commercialising Over 40 years of Bowen Basin coa
Slide 6: The Surat Basin Overview
The Surat Basin Overview For personal use only • Queensland’s next coal basin with more than 4 billion tonnes of thermal coal deposits • Coals are high volatile, reactive and clean burning with low nitrogen • Infrastructure planning and approvals are well advanced • Strong government support for dev
Slide 7: Stanmore Coal's Northern Surat Basin
Stanmore Coal’s The Range Project For personal use only Northern Surat Basin – 100% SMR owned • Export quality thermal coal • 94Mt JORC Marketable Coal Reserves1 • 229 Mt Total JORC resource (151Mt JORC Indicated Resource + 78Mt JORC Inferred Resource) • Open pit mine planned producing 5Mtpa of high
Slide 8: Export Thermal Coal
The Range Project – Export Thermal Coal For personal use only Key coal parameters Product Quality 10% ash 12% ash option (adb) option • Average total coal thickness 8.5m where all seams are present (max. 12m) Energy • Coal depth: 15m–100m; and continues at kcal/kg 6,470 6,280 depth Btu/lb 11,650 11,
Slide 9: Drilling status
The Range Project Drilling status For personal use only Drilling completed to date • 84 holes completed to date • Recent 28 hole program underpinned JORC Reserve/Resource upgrade in August 2011 • Bulk samples obtained in eight large diameter core sites – data to feed into wash plant design and PFS •
Slide 10: Walloon Coal Measures
Walloon Coal Measures For personal use only Two main coal sequences • Juandah Coal Measures (eg. Wandoan, Cameby Downs) • Underlying Taroom Coal Measures (eg. The Range)
Slide 11: New seam intercepts
New seam intercepts For personal use only • Additional drilling to the west of the pit has intercepted additional sub-cropping coal seams • Interpreted to be seams in the Argyle interval of the lower Juandah Coal Measures • Hole 83R: 11.8 metres cumulative coal to a depth of 188 metres including a s
Slide 12: Conceptual mining study results
The Range Project – conceptual mining study results For personal use only Cost estimates (to be updated in PFS) Opportunity for FOB Reduction Owner/ Contract • Inclusion of bypass coal increases potential 12% Product Operator Mining yield Ash Case Option Option Development Capital Cost A$502m A$299m
Slide 13: Pre-feasibility study update
Pre-feasibility study update For personal use only Significant bypass coal identified • Clean coal not requiring washing • 30-50% of the deposit • Boosts effective yield to 80% life of mine • Previous Free on Rail (FOR) cost of A$46/t was based on 63% yield • Economic impact will be updated in the P
Slide 14: The Range - site layout
The Range - site layout For personal use only
Slide 15: The Range - rail line tie in
The Range - rail line tie in For personal use only
Slide 16: Site infrastructure
The Range Project Site infrastructure For personal use only Power Water Accommodation Coal Transport • 10 – 15 MW required • ~3000 ML pa • 420 employees Corridor requirement (production) • Conveyor to rail loop – • Ergon has provided a route finalisation solution Supply Options: • Mixture of local h
Slide 17: Transport Infrastructure for Rail and Port
Transport Infrastructure for The Range Project For personal use only Rail Port Surat Basin Rail (SBR) Wiggins Island Coal Export • Ties Surat Basin into existing Terminal (WICET) Queensland Rail Moura line to • Stage 1 of 27 Mtpa – financial Gladstone close expected in September 2011 • Expect rail c
Slide 18: Environmental work underway
Environmental work underway For personal use only • EIS commenced in November 2010 • EIS Terms of Reference (ToR) and Initial Advice Statement (IAS) have been issued • EPBC Referral to Federal Government completed • EIS studies well advanced and include: • Soil and landform assessment • Hazard and r
Slide 19: Land access
The Range Project – land access For personal use only • Initial property acquisition made via staged payments • Discussion underway with other potential impacted land owners (eg transport corridor) • Working in with the landowners to minimise impact • Native Title extinguished across site 19
Slide 20: Mackenzie Project Overview
Mackenzie Project Overview For personal use only Bowen Basin – 100% owned • Open pit coking coal • Currently 99Mt JORC Inferred Resource with further drilling underway • Located on existing railway line to coal ports at Gladstone • 25km of strike (Burngrove Formation) • Adjacent to Aquila Resources’
Slide 21: Current Inferred Resource and exploration targets
Current Inferred Resource and exploration targets For personal use only JORC JORC Indicated JORC Inferred Exploration Target Project Marketable Coal Resource (1) Resource (1) (2) Reserve (1) Low High Mackenzie Coking 99 70 80 The Range Thermal 94 151 78 Tennyson Thermal/Coking 220 290 Totals 94 151