PERTH (miningweekly.com) – ASX-listed Balamara Resources on Wednesday reported that the prefeasibility study (PFS) into its Mariola thermal coal project, in Poland, had demonstrated robust economics.
Based on a maiden reserve of 39.5-million tonnes, the project was expected to produce some 2.7-million tonnes a year over a mine life of 15 years. The project would require a capital investment of $79-million, and would deliver an after tax net present value of $312.7-million.
Over the planned mine life, the project was expected to deliver a cumulative free-cash flow of A$1.13-billion.
“This is a tremendous result for our shareholders, which clearly demonstrates the world-class nature of the Mariola asset and vindicates our decision to acquire 100% ownership of this project,” said Balamara MD Mike Ralston.
He noted that the PFS exceeded the company’s expectations in nearly every respect, and demonstrated exceptional returns from the Tier 1 asset, with the potential to underpin a robust, long-life underground coal mining operation.
“This supports Balamara’s aggressive development strategy within the strong Polish coal sector. We are committed to transforming Balamara into a coal producer in the near terms, and Mariola presents the first phase of this initiative.”
With the PFS now completed, Balamara would move ahead with a definitive feasibility study.
The company would also be undergoing all necessary permitting to bring the Mariola project into production over the next 12 to 18 months, or before the end of 2016.