Coalworks has received a Preliminary Feasibility Study update on the development of the Vickery South Coal Mine, indicating a 3 million tonnes per annum project.

Subsidiary Coalworks Pty Ltd received the PFS update on the New South Wales project from its consultants Minarco-MineConsult which considered coal handling and preparation plant and mine infrastructure.

The Resource increase to 51 million tonnes announced in February has allowed the PFS to increase pit shell size to produce 33% more product coal over expected mine life. The Vickery South Coal Project has now increased to 3 million tonnes per annum project. The mine will produce 83% semi soft coking coal and importantly, the NPV has increased to USD 243 million with 23% internal rate of return with 3 million tonnes per annum.

The 3million tonne per annum case has a 16 year mine life producing a total of 43.2 million tonnes ROM Coal which after washing at 83% yield would produce 30 million tonnes of semi soft coking coal and 6.3 million tonnes of thermal coal. The FOB direct operating cost for the 3 million tonnes per annum case is favorable compared to industry benchmarks.

For the 2 million tonnes per annum case the there is a project NPV of USD 159 million at a 10% discount rate, with an IRR of 19%. An average of 83% of the product will be semi-soft coking coal with a CSN greater than 4 and ash of less than 8.5% and product moisture of 12.6%.

(Sourced from www.proactiveinvestors.com.au)