Stanmore Coal Limited has announced an increased JORC Reserve for the Isaac Plains Complex (consisting of Isaac Plains Mine and the Isaac Plains East Project).
As a result of recent technical studies, the total JORC ROM Reserves for the Isaac Plains Complex have increased by 8% from 15.2 million t to 16.4 million t, even after depletion from mining of 1.28 million t since the last statement in February 2015.
Confirmation of the extension of Open Cut mine life for Isaac Plains Complex
The updated JORC Reserve for the Isaac Plains Complex confirms the total open cut mining life from the initial pit shell for Isaac Plains Mine (IPM) of 3 years, to a current open cut life of 12 years life through to 2029. The change in ROM Reserves at Isaac Plains Mine includes the depletion of Reserves 2017. The timing of the release of the Resource and Reserve statements in August has been due to the use of updated Isaac Plains East (IPEP) Resource information and recent mining studies to combine and maximise Reserves across IPM and IPEP.
Additional tonne from increased long-term coal prices and reduced operating costs with improved operating methods. For IPEP the ROM Reserve has increased from 10.25 million t to 11.09 million t, an increase of 0.84 million t.
Due to additional drilling and the JORC Resource update, 83% of the Reserve ROM coal category is now classified as Proved compared to the previous estimate of 0%. The IPEP Reserve production profile averages approximately. 1.5 million tpy run of mine (ROM) coal with a maximum of up to 1.9 million tpy ROM in the early part of mine development.
Once mining at IPEP is completed, open cut operations resume at IPM with a declining production profile below 1.0 million tpy ROM until completion in 2029.
Significant synergies with existing Isaac Plains Mine
In FY18, ROM coal mining at IPM is projected to be at an annualised rate >1.6 million t.The continued strong site performance is planned to transition to IPEP. Mining at IPEP will utilise the dragline currently operating at IPM as well as the fixed infrastructure including the Coal Handling Processing Plant (CHPP), Train Load Out (TLO), rail loop, offices and workshops. Due to the proximity of the two deposits, apart from connecting haul roads, minimal additional infrastructure will be required to develop IPEP.
Isaac Plains East Project
Development path
Environmental Approvals for the proposed Isaac Plains East Mining Lease area are well advanced. Recent progress in June resulted in the finalisation of negotiations with landholders which have allowed the public notification process to be triggered. The targeted first production from IPEP is likely to be 4Q FY18 (subject to no objections during the public notification period) with the timely processing of the approvals leading to the grant of the Mining Lease. The company will continue to make updates on progress as milestones are achieved.
Isaac Plains East Project - a low cost mine extension
The IPEP has been substantially advanced in preparation for development and operations as an extension of the existing IPM. Updated marketable reserves of 9.0 million t at the average product coal mining rate of 1.2 million tpy provide for an economic mine life of approximately eight years. The latest reserves model indicates an eight year average prime strip ratio (bcm/ROM t) of 11.2 with the first three years at 8.8 (compared to the three year forecast average strip ratio of approximately 19:1 within IPM).