Cokal releases annual mineral resource and reserve statement

Highlights

• Significant growth in reported ore reserves for the Bumi Barito Mineral (BBM) project to 23.1 million t, representing an increase of 22% y/y.
• Highly attractive financial metrics with a net present value (NPV) for the BBM Project estimated at US$255.3 million (AUS$350.2 million).
• Lucrative opportunity to continue converting BBM’s large 260 million t metallurgical coal mineral resources to ore reserves, translating to anticipated future increases in forecast annual production and/or mine-life extensions.
An upcoming drilling programme at the Tambang Benua Alam Raya (TBAR) Project, contiguous to BBM and prospective for large-scale metallurgical coal deposits, is anticipate to result in a maiden JORC Resource in 2022.

This statement demonstrates the continued execution of Cokal’s strategy of achieving low-cost, high-margin metallurgical coal production, with saleable production from BBM (Cokal 60%) commencing 4Q21.

Changes in mineral resources and ore reserves are driven by the continuing technical work undertaken at BBM, updated long-term coal price assumptions, and refinement of life-of-mine operating assumptions, including operating costs and development capital expenditure.

Coka notes the significant and comprehensive technical work previously completed at BBM, including the feasibility study undertaken by Resindo Resources & Energy Indonesia, announced on 13 February 2014; and an updated feasibility study, indicating significant reductions in BBM operating costs and capital costs, undertaken by Resindo, announced 2 November 2016.

Read the article online at: https://www.worldcoal.com/coal/01102021/cokal-releases-annual-mineral-resource-and-reserve-statement/