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Paringa Resources secures new coal leases

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World Coal,

Paringa Resources has secured new strategic leases within its Buck Creek mining complex in western Kentucky, the company said in a press announcement. The company now controls a total lease area of 33 000 acres (13 557) ha., comprising 402 individually leased mineral tracts. Since the release of the company’s maiden coal resource estimate in November 2013, a further 75 mineral tracts totaling 8500 acres (3400 ha.) have been secured.

Location of Buck Creek mining complex.

Paringa Resources is targeting production from the Western Kentucky No. 9 coal seam – the second largest producer of thermal coal in the US (by coal seam). The geology of the seam within the Buck Creek Mining Complex should allow some of the most productive and lowest-cost underground coal mining in the US, according to the company.

The proposed Buck Creek No.1 and No.2 mines are located within an existing coal mining region, providing easy access to transport, power and other support infrastructure. Pre-feasibility is scheduled to be completed for the Buck Creek No.1 mine in the March 2015 quarter with a technical study for the Buck Creek No.2 mine due in September.

Buck Creek mining complex and adjacent operations.

“Our successful leasing programme has significantly de-risked the development of the Buck Creek No. 1 mine and paved the way for a substantial expansion to the pre-feasibility study mine plan,” said David Gay, Paringa’s CEO. “We has an exciting six months ahead with the JORC coal resource estimate update, pre-feasibility study results for Buck Creek No.1 mine and the results from the Buck Creek No.2 mine technical study.”

The Buck Creek mining complex is located in the Illinois Basin and is one of the few remaining contiguous high-quality thermal coal projects with the Western Kentucky No. 1 coal seam that is not controlled by one of the major US coal companies.

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