Tigers Realm Coal aims to be producing coal from the Amaam Coking Coal Project in far eastern Russia by the end of the year. Production is set to commence from Phase One of Project F, where the company has recently completed a feasibility study.
The capital cost of Phase One is estimated to be US$6.6 million and site operating costs are estimated to be US$25 per tonne free on board (FOB).
The study supports development of a 20-year low cost mining operation with potential to more than double output with open pit expansions and underground mining.
- A life-of-mine (LOM) average waste to product stripping ratio of 4.9:1;
- LOM marketable production of 18.9 million tonnes, comprising 13.4 million tonnes of semi-hard coking coal and 5.5 million tonnes of thermal coal;
- A 140% increase in marketable coal reserves;
- Initial capital for 1.0 million tonnes per annum production rate estimated at US$99 million; and
- LOM average operating cost estimated to be US$41 per tonne FOB including state royalties.
- Phase One of Project F’s development leverages off the mine fleet and infrastructure already at site, and targets near surface coal seams to produce unwashed thermal and coking coal products.
Site operating costs for Phase One are estimated to be US$25 per tonne FOB.
The Phase One feasibility study estimates that approximately 3.8 million tonnes of sales can be achieved at a stripping ratio less than 3:1. Production is expected to ramp up to a rate of 600,000 tonnes over two years.
Coal mining is to commence late in the fourth quarter, with first sales in 2017.
Following completion of the successful feasibility study, the company launched a A$23.3 million rights issue.
Funds raised will be mainly used for financing the development of initial coal mine production at Project F utilising existing infrastructure and mining fleet already mobilised to site.
Two tenements, Amaam and Amaam North, together comprise the Amaam Coking Coal Project. The two tenements are within 35km of the Bering Sea coast in Chukotka Autonomous Okrug, far eastern Russia.
Tigers Realm has 80% ownership of Amaam and has recently signed a Heads of Agreement which will see its 80% ownership of Amaam North increase to 100%.
In addition, the company owns 100% of the Beringovsky Port and Coal Terminal, 35km to the northeast of the Amaam North tenement.
Amaam and Amaam North have combined JORC compliant coal resources of 632 million tonnes with the majority of these resources being of coking coal quality.
Project F within Amaam North has 110.6 million tonnes of coal resources, 16.1 million tonnes of which have already been classified as product (marketable) reserves under JORC.