Tigers Realm Coal could be one of the world’s lowest cost coking coal producers with site operating costs of approximately US$41 per tonne FOB at Project F within the Amaam Coking Coal Project in Russia’s Far East. The company continues to ramp up mining at the Project F operation since commencing coal production last December.
Phase One of Project F is in production and ramping up to an annual rate of 600,000 tonnes with relatively low capital expenditure required to grow to an interim annual capacity of at least two million tonnes. Up to April 30, 97,000 tonnes of coal had been delivered to port in the first four months of production.
Amaam has a 632 million tonne resource base of high quality metallurgical coal with potential for further growth in a stable, supportive jurisdiction. Project F has 110.6 million tonnes of coal resources, 16.1 million tonnes of which have been classified as product (marketable) reserves under JORC.
Coal is trucked to the company's 100%-owned Beringovsky Port and Coal Terminal, 75km by road to the northeast of the Amaam North tenement, which hosts Project F.
Two tenements, Amaam and Amaam North, comprise the Amaam project, which is within 35km of the Bering Sea coast in Chukotka Autonomous Okrug.
Tigers Realm has 80% ownership of the entire property and has signed a Heads of Agreement, which will see its ownership of Amaam North increase to 100%. Binding documents have been prepared and will be signed pending some administrative restructuring requirements.
The company’s strategy is to become a significant supplier of 5 to 10 million tonnes per annum of coking coal to the seaborne market via the staged development of the Amaam North and Amaam coal basins. This will be achieved through three stages:
· Stage 1: Development of Project F to 1 million tonnes per annum semi-hard coking coal, shipping through company owned Beringovsky Port.
· Stage 2: Production increases from Project F, which is open to depth and along strike, and many prospective areas of outcropping Middle Chukchi coal on Amaam North.
· Stage 3: Development of Amaam to full capacity and establishment of a transportation corridor to a year-round port at the deep water Arinay Lagoon. Open pit pre-feasibility study estimated 5 million tonnes per annum production.