Stanmore completes Designated Area Agreement for Isaac South Project

The Agreement provides Stanmore with the rights to explore, study, and then apply for a future mining lease over a Designated Area on the MBS JV tenements (MDL277 and EPC548), which is immediately adjacent to Stanmore’s Isaac South project on EPC 755 and, subject to the progressing of environmental impact and associated studies and receipt of mining approvals, it will allow a large-scale mining operation across Stanmore’s Isaac South Project (EPC755) and the open cut Rangal coal measures in the “Designated Area”.

The coal deposit sub-crops on the Designated Area providing additional low strip ratio coal to Stanmore’s existing Isaac South Project in EPC755, which in turn lowers operating costs and may provide over double the volumes and mine life than its existing tenement alone. The strip ratio in the Designated Area is expected to start off at only ~4 – 5:1 ROM, meaning the capital cost for pit development will be relatively low, with the time to uncover first coal relatively quick.

Initial concept designs indicate the project will require low capital investments given it will be a brownfield expansion of the current mining operations at Isaac Downs, requiring only haul road connections and typical mine infrastructure, such as water management and pit development. The project is strategically located immediately adjacent to Isaac Downs and is nearby the existing infrastructure of both the Isaac Plains Complex and Poitrel CHPP and train loadouts.

Commenting on the Agreement, CEO Marcelo Matos said:

“This transaction paves the way for the development of our Isaac South project in a more competitive and lower average strip ratio basis, as a natural capital efficient brownfield extension of our current Isaac Downs mine, prolonging the overall mine life at our Isaac Plains Complex.”

The Designated Area is expected to contribute an estimated 50% of the total mineable resource of the enlarged Isaac South project. The project is expected to produce a high-quality metallurgical coal product, similar to that currently mined at Isaac Downs.

The Agreement provides Stanmore the rights to exploration on the Designated Area which will enable its team to rapidly finalise project studies and scope, work packages and the costing and perform the necessary field work to support mining approvals. Stanmore is expecting to lodge all submissions for regulatory approvals to mine the Isaac South deposits (including the ones under the Designated Area) and build a haul road and associated infrastructure to connect the project and haul ROM coal to its existing ROM coal stockpiles at Isaac Downs in 2025, with the Company focusing on progressing these approvals as quickly as possible, given the high potential and the capital efficiency of this project.

Marcelo Matos added:

“We will now work closely and swiftly with State and Federal Government Departments and regulators to progress the Environmental Impact Studies and all associated work and secure all required regulatory approvals to submit an investment case for internal approval to start construction of the new pit and associated infrastructure. It will be important to ramp up operations on time to ensure we have continuity of operations at our Isaac Plains Complex, which may potentially add another 15 years at the same rate of ~4 million tpy of ROM coal mining, and likewise ensure continuity of employment for our workforce at the Isaac Plains Complex.”

Read the article online at: https://www.worldcoal.com/mining/10092024/stanmore-completes-designated-area-agreement-for-isaac-south-project/