Name of the Project
Gordon Creek coal project.

Location
About 27 km south-south-east of Tumbler Ridge in north-east British Columbia, Canada.

Client
Colonial Coal.

Project Description
The results of a preliminary economic assessment (PEA) have shown Gordon Creek to have positive economics worthy of further exploration and development.

The PEA is based on a conceptual under­ground mine plan that targets 111.6-million run-of-mine tonnes of resource, with a yield of 51% producing 57.4-million tonnes of clean coal over a mine life of 30 years.

Coal will be mined from Seams B to G, and premium pulverised coal injection coal from Seams J and K that will be mined last. Seams J and K are the two deepest seams and represent about 28.6% of the reported resources and about 31.5% of the reported saleable tonnes.

In full mine operation, projected clean coal production ranges from 1.6-million tonnes a year to 2.6-million tonnes a year averaging about 1.9-million tonnes a year.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an indicative after-tax (and royalty) net present value, at a 7.5% discount rate, of $690.5-million and an internal rate of return of 24.4%, based on a weighted average coking coal price of $164.8/t and a premium pulverised coal injection, or PCI, coal price of $140.5/t. The project’s proposed payback of initial capital is estimated to be within three years from the start of coal production.

Value
The project will cost about $300-million to implement.

Duration
Not stated.

Latest Developments
None stated.

Key Contracts and Suppliers
Stantec Consulting Service (PEA).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Colonial Coal, tel +1 604 568 4962.