Substantially Improved Potential Economic Outcomes In BC
Jameson Resources Limited’s (ASX: JAL) new Yield Optimisation Study, the first optimisation opportunity of the 2020 Crown Mountain Bankable Feasibility Study (BFS), has confirmed increased production and substantial improved potential economic outcomes in British Columbia, Canada.
The Yield Optimisation Study builds upon the Bankable Feasibility Study completed in July 2020 which confirmed that the Project represents a compelling high quality hard coking coal development opportunity with a competitive operating and capital cost structure, with access to existing common user rail and port infrastructure.
Jameson’s Chair, Nicole Hollows, said the Bankable Feasibility Study also identified a number of areas of potential optimisation that the company intends to assess in order to maximise the economic outcomes whilst finalising the Environmental Assessment (EA) approval.
“The Yield Optimisation Study further enhances the cost competitive position and positive economic returns for the Project. Crown Mountain is a compelling value proposition with high quality hard coking and robust economic outcomes located in a well- recognised existing production area with close proximity to established infrastructure,” Nicole Hollows said.
Jameson’s Managing Director, Michael Gray said completion of the Yield Optimisation Study further improves Crown Mountain’s attractive business case from that of the BFS.
“Jameson will continue to progress other opportunities to optimise the Project in parallel with progressing approval of the Environmental Assessment. The Project’s attractive economics and progress of the Environmental Assessment are confirmed by the International Energy Agency’s view that Crown Mountain is the most advanced steelmaking coal project in Canada,” he said.
Background
Crown Mountain Coking Coal Project is a potential low-cost, high-quality, open cut hard coking coal mine located adjacent to two existing hard coking coal mines within the Elk Valley in British Columbia. The Project is owned by Jameson’s Canadian Subsidiary, NWP Coal Canada Ltd (NWP) that is 77.8% owned by Jameson and 22.2% by Bathurst Resources Limited (ASX:BRL).
A Bankable Feasibility Study (“BFS”) completed in July 2020 confirmed that Crown Mountain represents a compelling high quality hard coking coal development opportunity with a competitive operating and capital cost structure and access to existing common user rail and port infrastructure.
The BFS noted there were a number of optimisation opportunities which could further improve the positive economics of the Project. These included:
- Yield Optimisation
- Increased Coal Handling and Processing Plant (CHPP) Utilisation
- Review of CHPP Capital costs through Chinese procurement and/or modular design
- Contract mining or mobile equipment leasing
- Consideration of potential Build-Own-Operate-Transfer options for the CHPP and associated infrastructure
- Further exploration in Southern Extension area to upgrade current 24mt Inferred Resource to Measured and Indicated resources.
The Yield Optimisation Study, the first of these opportunities to be progressed, involved the following:
- Assessing the ash yield curve of each coal block to assess opportunities to improve CHPP yield
- Testing of higher ash product coal samples to understand any potential impact a higher ash product has on key coking properties of the product
- Assessment of the overall Project economics of producing a higher ash product by analysing potential production increase against any relative revenue discount due to a higher ash product.
For further information please visit: https://jamesonresources.com.au/
