tigers realm coal continues charge

Tigers Realm Coal continues charge with robust PFS results for Amaam North in Eastern Russia

Monday, September 02, 2013 by Proactive Investors

Tigers Realm Coal continues charge with robust PFS results for Amaam North in Eastern Russia

Tigers Realm Coal (ASX:TIG) will trade higher this morning following a completed Pre-Feasibility Study on Project F located in Chukotka province in Far Eastern Russia, 30 kilometres south-west of existing coal mining operations at Nagornaya.

The PFS on Project F demonstrates outstanding economics; a shortened time frame to first production, over 1 million tonnes per annum of primarily coking coal product, and a low 5:1 strip ratio open pit with an initial 11 year mine life.

Deposit F represents a fraction of the Amaam North licence, and has the potential to become one of the lowest operating cost coking coal mines in the world with a cash cost of US$75 per tonne.

The capital required to initial production is estimated at US$52 million, with a payback of under 24 months.

Using a coking coal price of US$150/tonne and a 10% real discount rate, the project has an after-tax net present value of US$177 million and an Internal Rate of Return of 37%.

The Bankable Feasibility Study continues, to be completed by Q1 2014 as scheduled, with strong interest already canvassed to fund mine development.

Ongoing drilling is scheduled to enhance the project by expanding open pit resources on the largely unexplored Amaam North licence, and evaluating underground mining of the thick seams below the open pit.

Project F is set to become the core starter mine which will financially support expansion of production from the main 6 million tonne per annum Amaam Project.



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