The average forecast free-on-board cash cost during the first 10 years of the possible 30-year mine is estimated at $60 per tonne excluding royalties with 100% yield, according to the development consent study.
“The prefeasibility study completion date is currently set at June 2012,” NuCoal said.
“During the study, exploration drilling will continue, to complete the evaluation of the resources on the Doyles Creek tenement with a view to expanding the current mineral resource of 497.7 million tonnes and raising the resources into indicated then measured status.
“Continuation of environmental monitoring and community relations activities will remain a priority. More detailed discussions will be held for rail and port access during H1 2011, with NuCoal planning to apply for PWCS port access in the July 2011 nominations.”
Total initial capital requirements for Doyles Creek were estimated at about $500 million utilising owner-operated mining. For the first 10 years, this estimate assumes only coal crushing and handling plant (as opposed to full coal washing plant) as production from the Whynot seam during this period should not need washing.
The draft underground mine plans are laid out in five target seams and indicate a high conversion ratio from resources to reserves, with single seam and multi-seam combinations possible and training mine layouts specifically incorporated into all scenarios evaluated.
“In developing all mine plans, sufficient coal has been provided to support the longevity of the underground training mine facility,” the company said.
“Assuming that these, or similar layout plans, are supported as further detailed geological information is obtained, some 260 million tonnes of the current resource of 498 million tonnes is therefore able to be laid out for mining.
“The plans therefore demonstrate that a high ratio of resource to reserve conversion of approximately 52 per cent is possible at Doyles Creek.”
Seven potential product transport corridors were identified between the project and existing rail heads.
NuCoal’s shares were up by 3.5c to 45c in morning trade.
