Shinejinst Feasibility Study, Reserves Report and Resources Estimate Updated to JORC 2012 Code
Saker Resources is pleased to announce that RPMGlobal Asia Limited, an independent technical consultant based in Australia, has completed a new Shinejinst Coking Coal Mine Feasibility Study, Reserves Report and Resources Estimate to JORC 2012 Code standard.
Reserves Report and Resources Estimate
The Reserves Report and Resources Estimate confirm proved and probable coking coal reserves of 88.3Mt and total resources of 167.9 Mt as detailed below:
The results of the Feasibility Study also confirm the high-quality nature of Saker Resources’ Shinejinst Coking Coal Mine. Highlights of study include:
- 113 Mt ROM coal at a strip ratio of 7.7:1 (bcm : t ROM) producing 90 Mt semi-soft coking coal;
- Four-year ramp up to 7.5Mt per annum ROM coal;
- 19-year mine life;
- Average product yield estimated at 77.8% with product ash of 9.8%;
- Net present value (NPV) of $863M at a 10% discount rate; and
- Internal rate of return (IRR) of 29%.
This update of Shinejinst’s technical information to current JORC standard is an important step in rapidly progressing the mine to commercial production. The favorable economics and product coal characteristics confirmed in the Feasibility Study verify the attractiveness of the project.
Saker Resources’ Shinejinst Coking Coal Mine is an open-cut semi-soft coking coal development located in southwest Mongolia, 305 km by pilot road to a Mongolia-China border crossing by Ceke. China is the world’s largest consumer and importer of coking coal, providing a ready market for Shinejinst’s semi-soft coking coal.