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Paringa scoping shows Buck Creek promise

24th March 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – A scoping study by US-focused Paringa Resources has shown that its Buck Creek coal project, in Illinois, could deliver 3.4-million tonnes a year of saleable coal over a minimum 16-year mine life.

The project currently has a resource estimate of about 154-million tonnes of coal, which could support a production of 4.7-million tonnes a year run-of-mine coal production.

The scoping study found that the project would require a capital investment of $76-million, along with a coal handling and process plant and barge load-out facility of $33-million, bringing the total capital cost to $109-million.

Buck Creek was expected to generate, on average, cash flow of $88-million a year. The average yearly operating costs were estimated at $28/t.

“Results from the study show the potential to develop a highly attractive new mine, aiming to replicate the success of our peers in adjacent mines in the region,” said Paringa CEO David Gay.

He noted that with the scoping study complete, Paringa would now look to begin a prefeasibility study (PFS) on the Buck Creek project in the coming weeks. The PFS would likely be completed before the end of the year.

“We are in the enviable position that we have a highly advanced project with very strong fundamentals. The Buck Creek project has the potential to rapidly become a significant new production source in the highly sought after Illinois coal basin,” Gay added.

Edited by Creamer Media Reporter

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