Tigers earns stripes at Amaam

TIGERS Realm’s Amaam project may have been the star in the company’s portfolio last quarter but its most recent quarterly report reveals its nearby Amaam North project has stolen the show.
Tigers earns stripes at Amaam Tigers earns stripes at Amaam Tigers earns stripes at Amaam Tigers earns stripes at Amaam Tigers earns stripes at Amaam

Amaam coking coal project. Image courtesy of Tigers Realm Coal.

Staff Reporter

The Russia-focused company announced an initial JORC-compliant resource of 26.8 million tons at Amaam North on July 4, including 7.2Mt measured, 4.6Mt indicated and 15Mt inferred.

In April a total of 40 holes were drilled in project F on a small portion of the Amaam North license block at a depth of 30-160m.

The area was chosen due to the presence of outcropping thick, shallow coking coal seams close to existing infrastructure.

The results from the drilling confirmed shallow-dipping seams with a cumulative coal thickness of 2-11m, with approximate depth of cover of 5-115m.

Following initial air dried coal quality testing, Tigers said the coal at project F appeared to be a mid to high-volatile bituminous coking coal.

The upper coal seams comprise approximately 63% of the deposit and have an average ash content of 9.3%.

These seams will provide the majority of the raw product for direct shipping that will be targeted in the first phase of the project’s operations.

Tigers added that the lower seams had an average ash of 19.3% and would require washing to produce a coking coal product but clean coal testwork was not yet complete.

An independent consultant geologist previously defined an exploration target of 30-40Mt for the license based on data collected to June 2012.

Tigers said it would follow up on prospective areas to the south and east of project F, with field mapping programs during August and September and further drilling slated for November.

Work on a prefeasibility study for the open pit potential of project F is underway, with results anticipated for the third quarter of 2013.

Tigers said it expected the PFS to demonstrate the viability of project F as a starter coking coal mine development.

Subject to completion of a definitive feasibility study in Q1 2014 and obtaining all necessary approvals, development of project F is expected to commence in early 2014.

A PFS for the company’s other project, Amaam, was completed in March and confirmed a large-scale, long-life open pit and underground mine with production of 6.5 million tons per annum of coking coal, of which 5Mtpa would come from open pit and 1.5Mtpa from underground over the 20-year life of mine.

During the quarter the company continued work on the Amaam bankable feasibility study, through a further drilling program comprising 24 exploration holes; a bulk sample taken for pilot plant processing; field work; data collection; and ongoing optimization studies.

As well as providing data for the study, it is hoped the continued exploration work will expand the project’s resource.

As sufficient additional drilling and study work is completed to convert resources into reserves for inclusion in the mine plan, Tigers will apply for a mining license covering the remainder of the Amaam coking coal deposit.

Total Amaam resources comprise 412Mt of coking coal.

Tigers Realm holds 60% ownership of Amaam and can increase its ownership to 80% once a bankable feasibility study is completed.

The company owns 80% of Amaam North.

Another focus for the company during the quarter was to advance the development of its Arinay coal terminal.

The proposal for the terminal at Arinay Lagoon was included in the Russian government’s most recent scheme of territorial planning in the March quarter.

Since then, the company has commenced detailed design and engineering work, including the completion of the preparation of preliminary scopes of work.

The company also highlighted a focus on health and safety.

It signed an agreement with the provincial government committing it to social investment but did not disclose what it entails.

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