Positive Start to Project F Phase One Development • Coal...

Positive Start to Project F Phase One Development

• Coal production and trucking is scheduled to commence in December 2016
• Phase One development works comprise:
• Haul road to be built in two stages –winter road completed by Dec 2016, all season road to be completed during summer 2017
• Upgrades to exploration camp infrastructure
• Procurement and delivery of additional mobile fleet
• Construction of an on site laboratory
• Upgrades to the port and transhipment fleet
• Construction of pit roads and environmental controls
• Recruitment and establishment of site operating team


The open pit operations are approximately 37 km from the Port coal stockpiles

• After 6 weeks of work,  26.5 kms (70%) of the initial road for winter usage is complete
• The remaining 30% is well on track to be completed in the next 10 weeks prior to the start of mining and trucking

Phase One targets low stripping ratio coal from the low ash upper Seam 4 to sell into thermal coal and semi soft coking coal markets as an unwashed product.
Other site progress to date includes:

• The purchase of 8 Scania 6 x 4 wheel drive 32 tonne capacity haul trucks.

• Procurement of additional mobile fleet comprising an 40t excavator for coal mining, fuel truck, snow clearing truck and other light vehicles.

•Service contracts and supply of equipment spare parts on consignment contracts are now in place with Vostochnaya Technica (CAT) and Scania.



•Turn key contracts are in place for the erection of the workshop and office, and upgrades to the existing exploration camp. All off-site fabrication has been completed.

•Delivery of 2,000 tonnes of diesel fuel completed.

•Procurement of a modular laboratory from SGS who will also provide on site coal quality analytical services

•Key operational staff recruited and on site -Operations Manager, Mining Manager and Manager Geology

Looking Forward to Production in 2017

Trial mining during April 2016 to confirm mining conditions and to provide thermal and semi soft
coking coal samples that are currently being evaluated by potential customers.


Mine Infrastructure Area

The current exploration camp has sufficient accommodation for Phase One. Existing facilities will be supplemented with an office, workshop and helicopter landing pad.