Paringa Scoping Study confirms Buck Creek fundamentals

THE DRILL SERGEANT:  Paringa Resources (ASX: PNL) has announced the results of a JORC Code 2012 and NI43-101 compliant Scoping Study conducted on the north eastern quadrant of the company’s Buck Creek thermal coal project in Kentucky, USA.

The study used the projects current coal Resource Estimate of 154 million tons of coal, and determined the Buck Creek project can support production of 4.7million tons per annum (Mtpa) for the Run-of-Mine coal yielding approximately 3.4Mtpa of saleable clean coal at steady state production

The company said the project’s fundamentals from this initial development are very encouraging with average annual operating cash costs during steady state production (exclusive of royalties and severance taxes) of US$28 per ton Free On Board Barge with potential to achieve average annual operating cashflows during steady state of production of US$88 million per annum.

 

Key results of the Study. Source: Company announcement

 

“Results from the Study show the potential to develop a highly attractive new mine aiming to replicate the success of our peers in adjacent mines in the region,” Paringa Resources chief executive officer David Gay said in the company’s announcement to the Australian Securities Exchange.

“With the Scoping Study complete the Company will look to begin a Pre-Feasibility Study on the Buck Creek project in the coming weeks.

“We are in an enviable position in that we have a highly advanced project with very strong fundamentals.

“The Buck Creek project has the potential to rapidly become a significant new production source in the highly sought after Illinois Coal Basin.”

Email: info@paringaresources.com

Website: www.paringaresources.com