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Allegiance Coal reports Telkwa metallurgical coal project PFS results

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World Coal,


Allegiance Coal Ltd has reported the results of the staged production pre-feasibility study (PFS) of its Telkwa metallurgical coal project located in northwest British Columbia, Canada.

The PFS was undertaken by SRK Consulting (Canada) Inc. (SRK) assisted by other mining and resources specialists including Sedgman Canada, and was completed and delivered to the company on 30 June 2017.

Staged development of a shallow open pit operation commencing with 250 000 tpy of saleable coal production (Stage 1) ramping to 1.75 million tpy over 4 years (Stage 2).

As a result of the analysis undertaken in the PFS, which establishes the economic viability of the measured and indicated resources, SRK determined a reserve estimate of 62.9 million t of raw coal producing 40.1 million t of clean coal with total moisture of 8.5%. This results in a total of 42.5 million t of saleable coal with a moisture content of 10% at an average mine life yield of 68%.

A mine life of 28 years was reported, and an average life-of-mine strip ratio of 5.8:1 BCM/ROMt. An average life-of-mine all-in FOB (ex-port) cash cost before tax was US$55/t, positioned in the lowest five percentile of the global seaborne metallurgical coal cost curve.

For the first 14 years of production, an all metallurgical saleable coal yield of 75% was noted, and a life-of-mine average of 68%.

Stage 1 initial capital investment was reported as US$51 million, this can be reduced to US$21 million with a manufacturer funded and operated wash plant, and either contract mining or equipment leasing.

Stage 2 initial capital investment was reported as US$162 million, this can be reduced to US$54 million with a manufacturer funded and operated wash plant, and either contract mining or equipment leasing.

Total initial capital, Stage 1 and 2, is repaid in 1.8 years (real terms) after commencement of Stage 2 production.

The assumed life-of-mine average coal price for a PCI product is US$110/t, with an exchange rate of CAD:USD 1.33 applied.

Read the article online at: https://www.worldcoal.com/exploration-and-development/04072017/allegiance-coal-reports-telkwa-metallurgical-coal-project-pfs-results/

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Canada coal news