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The company’s corporate model for the Baruun Noyon Uul mine now assumes a JORC compliant resources of 27.07 million tonnes and is based on an initial mine plan at a conservative rate of 1Mtpa for 10 years.
Revenue forecasts are based on pricing received from a marketing agent for a Wuhai Fat Coal specification.
A premium for low ash, low sulphur hard coking coal has not been included.Mine cost assumptions are based on actual mining costs incurred over the past six months of operation at the BNU mine.
The BNU mine is a truck and shovel open cut operation. Washing of the coal has been considered in the models.Guildford Coal managing director Peter Kane said: “These assumptions form the basis of the corporate model from which the value range of $300-$400 million was derived”.Comprehensive broad scale ground geophysics around BNU were completed in 2013 and 2014.
Four target areas in close proximity to BNU have been interpreted from ground geophysics independently by GRS Services.
