The resource was defined at less than 100m from the surface within the Aquarius seam of the Burngrove formation.

Stanmore is confident of proving up more resources and set an additional exploration target of 70-80Mt within the project area.

Both the Aquarius and Leo seams are estimated to cover a 25-kilometre strike length.

“We are very pleased to have 100 per cent ownership of an attractive coking coal project of this quality and magnitude located right on the rail line to the coal ports of Gladstone,” Stanmore managing director Nick Jorss said.

“We will continue further appraisal drilling at the project with the aim of increasing the JORC resource tonnages and move to undertake a conceptual mining study to firm up mining methods and the path to production.”

Stanmore said the Aquarius seam consists of five main coal piles with a maximum total interval of 4m and an average total thickness of 2.16m across the entire deposit.

The project is next to Aquila Resources’ Washpool project and is near the rail line to Gladstone between Ensham Resources’ namesake mine and Wesfarmers Curragh open cut mine.

In late July, Stanmore defined 219Mt of inferred thermal coal resources at its wholly owned The Range project in the Surat Basin.

Stanmore shares are up 3.5c to 92c, with the company achieving one of the strongest debuts on the Australian Securities Exchange in 2010.