Strike Resources updates Berau coal project
Tuesday, September 21 2010 - 07:52 AM WIB
Berau Thermal Coal Project (SRK 100%)
Strike has completed a Feasibility Study which focussed on the development of an open-cut contract mining operation with production scaling up from 1.5 Mt per annum (Mtpa) to 3Mtpa, with transportation 30kms by road to a new port for barging approximately 90kms down the Segah River to the coast and on to an established coal trans-shipment location approximately 30km offshore.
The study has confirmed that the Berau Project has the potential to generate an annual operating surplus of approximately US$33m, with:
■total capital cost of approximately US$19m;
■average operating costs of approximately US$41 per tonne;
■a projected coal price of approximately US$52 per tonne, FOB ship;
■ a run of mine coal product of medium calorific value of 5,400-5,600 kcal/kg GAR with low sulphur - 0.66%, as received (AR); ash - 7.3%, AR and total moisture - 16.6%, AR; and
■a development timetable of 8 months from receipt of development approvals to production.
Strike has recently completed an estimate of the Coal Resource in the Nyapa West block to be 14 million tonnes (Mt), comprising 1.8 MT of Measure Resource, 8.6 Mt of Indicated Resource and 3.6Mt of Inferred Resource. The Nyapa East block was assessed at 6.8 Mt Inferred Resource. Coal Resources for both blocks are summarised below:
Blocks within concession |
JORC Coal Resources (Mt) |
|||
Measured |
Indicated |
Inferred |
Sub-Total |
|
Nyapa West |
1.8 |
8.6 |
3.6 |
14.0 |
Nyapa East |
- | - | 6.8 |
6.8 |
Total |
1.8 |
8.6 |
10.4 |
20.8 |
Within the Nyapa West block and the above Coal Resources estimates, 7.7 Mt of Open Cut Coal Reserves were estimated in the Probable Reserves JORC category:
Probable Reserves(Mt) |
Calorific Value kcal/kg |
Total Sulphur |
Ash (ar) |
Total Moisture (ar) |
7.7 Mt |
5,546 |
0.66% |
7.3% |
16.6% |
(end of excerpt)