According to the company, the study results assert the technical and economic viability of the project located within Surat basin.

The net present value of the mine is expected to be around $441m – $499m.

The project contains a JORC (Joint Ore Reserves Committee) marketable reserve of 94 million tons (mt) from a JORC total resource of 287mt that includes 18mt of measured, 187mt of indicated and 82mt inferred thermal coal.

Stanmore anticipates capital cost for The Range project to be around A$599m ($620m) under an owner-mining model, while a contract mining model accounts to a capital cost estimate of A$455m ($471m).

Stanmore Coal managing director Nick Jorss stated that the feasibility study of the project confirms the economics that support the development of cost competitive, low strip ratio, export quality thermal coal project in Surat basin.

"The Range project economics are attractive and a delay to delivery of rail infrastructure allows the project to benefit from reducing contractor and capital costs. Stanmore Coal continues to work with rail and port providers to deliver export infrastructure to support the Surat Basin as cheaply and quickly as possible," he said.

Currently, the company is working towards supporting the delivery of rail and port infrastructure and it affirms that additional material expenditure will not be required before it completes the infrastructure process.

Located 25km south east of the Wandoan township in the Surat Basin, the Range Project is in proximity to the planned Surat Basin Rail line. The will provide a rail link to export facilities at Gladstone.

Meanwhile, the company is seeking mining license for the project expected to be obtained by 2013-end.