Allegiance provides update on Telkwa metallurgical coal project
Published by Harleigh Hobbs,
Editor
World Coal,
Allegiance Coal Ltd has provided an update on progress relating to its review of the staged production pre-feasibility study (staged production PFS) – the results of which were released to the market on 3 July 2017 – for the Telkwa metallurgical coal project and on completion and delivery of results to the market of the stage 1 pre-feasibility study (stage 1 PFS).
The staged production PFS review is complete, and the company believes it has achieved a material reduction in the stage 1 start-up capital, originally estimated at US$51 million, currently estimated at US$36 million.
SRK Consulting (Canada) Inc. (SRK), who prepared the staged production PFS, have been retained to prepare the stage 1 PFS for the company. SRK are incorporating the reduced capital expenditure into the stage 1 PFS, and the company will quantify and explain the reductions in its market release of the stage 1 PFS results.
The capital reductions do not relate to financing or leasing of the mining equipment or the coal wash plant, which remain 100% equity funded in the Stage 1 PFS.
Stage 1 pre-feasibility study
The stage 1 PFS is the blueprint for the commencement of development of the project, and will form the basis of the company’s project description to the Ministry of Energy & Mines, in its Sub-EA permit applications, in its engagement with First Nations, and in its consultation with other key stakeholders.
The company intends to now expedite completion and delivery of the stage 1 PFS. Previously the company had announced to the market that the Stage 1 PFS would be completed and delivered in 1Q18. However, the company has indicated that the results of the stage 1 PFS will be completed and delivered to the market on or before 30 September 2017.
Read the article online at: https://www.worldcoal.com/exploration-and-development/21082017/allegiance-provides-update-on-telkwa-metallurgical-coal-project/
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