Ann: MINE: BTU: Bathurst Completes Project Review

• Release Date: 27/04/12 10:30
• Summary: MINE: BTU: Bathurst Completes Project Review
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BTU
27/04/2012 08:30
MINE

REL: 0830 HRS Bathurst Resources Limited

MINE: BTU: Bathurst Completes Project Review

BATHURST COMPLETES PROJECT REVIEW

LOCAL RESIDENTS WITHDRAW APPEAL TO ENVIRONMENT COURT

Key Points:
o Project review completed - optimises development of resources
o Infrastructure changes - reduces operating cost and environmental effects
o Fairdown Whareatea Residents withdraw appeal

Bathurst Resources Ltd (ASX & NZX: BTU) is pleased to announce that following
a comprehensive project review and resultant changes to mine scheduling and
infrastructure, and a successful mediation process with the Fairdown
Whareatea Residents Association Inc (FWRA), the FWRA have withdrawn their
appeal to the Environment Court against the resource consents granted in
August 2011 by the Buller District Council and the West Coast Regional
Council for the Escarpment Mine Project.
Concurrently with the mediation, Bathurst has undertaken a comprehensive
review of the Buller Project. This included testing the assumptions on which
Bathurst's predecessor, L&M Coal Holdings Ltd's (L&M) planning and permitting
applications were made whilst acknowledging the previous constraints upon
L&M.
The original Buller Project Plan for which the resource consents were granted
in August 2011, was based on mining the Escarpment block, a coal washing
plant on the plateau and a pipeline to transport coal off the plateau to a
stockpile facility in Fairdown.

Bathurst has now developed a revised plan which eliminates technical risk
associated with the pipeline, commits to an aerial system of coal
transportation, delivers a better capital profile and significantly reduces
the environmental effects of the Buller Project.

The revised Buller Project Plan incorporates an improved mine schedule for
the Escarpment block, which will produce a low-ash coal negating the
immediate need for a wash-plant. The first two to three years of coal
production is expected to be at a slightly lower annualised production rate
and the coal will be transported off the Plateau via truck to either the Port
of Westport or a rail load out facility for transport to Lyttelton.
Annualised production rates are expected to be approximately 500,000 tpa
until the new aerial transport infrastructure has been constructed.

Concurrently with the first two years of production from Escarpment, the
permitting, design and construction of a shorter, more acceptable transport
route by an aerial system will be finalised. The aerial system will transport
coal to an identified site on the coastal plain north of Fairdown; a location
that is acceptable to local residents. This new "raw coal" strategy defers
the need for a wash plant for at least two years.

Upgrading the port facilities at Westport will proceed as planned with the
construction of a new covered storage shed which will cater for the
production from the Escarpment and Cascade mines.

The benefits of the revised plan are an optimised mining schedule, more
efficient use of resources and infrastructure, lower operating costs and
significant reduction in environmental effects. The resultant changes have
the support of the FWRA who have lodged an application to withdraw their
appeal to the Environment Court. The other parties who "co-joined" in the
FWRA appeal, including the Royal Forest & Bird Protection Society, have
agreed with the Residents application being withdrawn.
Bathurst's priority remains the development of Escarpment block. This
continues to be dependent upon the outcome of the remaining licence appeals.
Meanwhile, production from Cascade will be maximised and production from
Coalbrookdale, subject to final feasibility studies, will be expedited.
North Buller is subject to a scoping study, the results of which are expected
in the June quarter. Preliminary analysis indicates that North Buller coal
could be blended with Escarpment coal. This could enable the deferral of the
construction of a wash plant beyond the two years noted earlier.

The Escarpment project is expected to be fully funded, after allowing for
Bathurst's existing cash reserves and the US$90 million in borrowing
facilities that Bathurst anticipates concluding with its offtake partners in
the coming months.
Pursuant to the terms of the settlement between Bathurst and FWRA, Bathurst
will use its best endeavours to obtain all required consents for the revised
plan. However, the original consents granted to Bathurst will not be
surrendered and Bathurst retains the right to revert to the original project
plan in the unforseen event that the required consents for the revised plan
cannot be obtained.

Please see attachment for comments on today's announcement by CEO Mr Hamish
Bohannan.

On behalf of Bathurst Resources Ltd
Hamish Bohannan
Managing Director and Chief Executive Officer
Ends
End CA:00222249 For:BTU    Type:MINE       Time:2012-04-27 08:30:34