Xceed Resources Ltd.: Moabsvelden - Bankable Feasibility Study Results
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Xceed Resources Ltd.: Moabsvelden - Bankable Feasibility Study Results
Highlights:
•Completed bankable feasibility study for the Moabsvelden Thermal Coal Project (74% XCD) confirms the project’s attractive economic feasibility.
•Ungeared Project NPV at 12 ½% A$92m post tax, IRR 60%.
•Capital cost of development A$33m on the basis of owner operator of processing plant and contract mining.
•EBITDA margin 45%.
•15 year mine life producing 666 000 tonnes export quality coal and 890 000 tonnes domestic power station annually.
•Coal pricing based on expressions of interest received to take coal at the mine gate, liberating the project entirely from rail and port constraints.
•BOOM financing option received which would reduce capital cost of development to A$18m.
Xceed Resources (ASX: XCD) has received the completed bankable feasibility study on the Company’s 74% owned Moabsvelden Thermal Coal Project from the study managers Belton Mining & Projects. The study demonstrates that the project is both technically and economically viable. Commenting on the outcome of the study, Xceed’s Managing Director, Ian Culbert, said;
“We are delighted to have reached this important milestone in the development of the Company. The study confirms the viability of the project, which when built will provide an outstanding platform for future growth. Importantly, the study shows that the cost of development is realistically achievable, the operating margins are robust and that the coal can be sold at the mine gate.”
Feasibility Study Overview
The Moabsvelden project is located on the western side of the Witbank coal field, approximately 80kms from Johannesburg. The project contains resources of 66.14mt (Measured 63.75 and Indicated 2.39mt) which includes Reserves amounting to 43.8mt. The Moabsvelden reserves have been modeled in terms of a block model consisting of 157 individual blocks with varying geological and mining losses for each block, but with overall mining and geological losses amounting to 25%. (Also excluded from the mine planning are approximately 8.8mt of resources for which there are surface constraints to open cast mining. Developments with the neighbouring colliery, however, are expected to remove these surface constraints if realized, and could result in mine life being extended by some 3 years.)
Mining
It is planned to exploit the Moabsvelden reserve by means of a contractor opencast truck & shovel operation at a production capacity of 250,000 run of mine tonnes per month on a six day double shift mining cycle. It is envisaged that the ramp-up period required to full production would be in the order of nine months, including three months for development of the box cut and ramp.
Coal produced from the pit will be transported via a 5.5 degree access ramp from the pit to the coal beneficiation plant and main infrastructure facility on the southern side of the property. On average a total of 487,000 m3 of overburden material needs to be removed monthly in order to expose 250,000 tonnes of coal per month; an average strip ratio of 1.95:1. Once the production pit is in steady-state mode, the mining method will be a conventional roll-over mining method by which the excavated hard and soft overburden material will be replaced into the void after the coal layers have been extracted.
Processing
The design of the beneficiation flowsheet has been dictated by marketing considerations and in particular is designed to enhance control over product sizings and qualities. The wash plant is designed to produce a full range of primary products including; nuts (26mm x50mm), peas (13mm x 25mm), grains (4mm x 12mm), duff (2mm x 3mm) and spiral (<1mm). In addition the plant will produce a Middling (0mm x 50mm) product. The base case product qualities for this study are primary products of each sizing of 26.0Mj and a Middling product of 20Mj.
It is planned to beneficiate the coal by means of a 450 tonne per hour double stage dense medium cyclone plant which will either be owned and operated by the Company or will be supplied and managed under a BOOM (Build-Own-Operate-Manage) proposal.
Production of approximately 666 000 tonnes of export quality (26Mj) and 890 000 tonnes of domestic power station quality coal (20Mj) is planned.
Marketing
The primary products (26Mj) are intended to be sold into the South African industrial market as well as to be exported via third parties who are in possession of port and rail allocations that are surplus to their own coal production capacities. The Company has received written advice from buyers within these two markets that confirm their willingness to purchase the expected annual tonnages produced at Moabsvelden at the mine gate prices used in the financial modeling. These confirmed mine gate prices average ZAR530/t, which approximately equate to the export price, less the freight differential.
The industrial market is made up of a range of buyers engaged in the production of paper and pulp, chemicals, cement, brick manufacture, beverages, citrus and mining. The industrial market is centered on the Pretoria-Witwatersrand-Vereeniging (PWV) industrial belt and the area surrounding Durban. Of these two hubs, the PWV is the largest with numerous factories which buy coal principally for use in chain grate steaming boilers. The close proximity of the Moabsvelden project to the PWV means that the project has a competitive advantage to supply these products relative to the majority of suppliers who are located in the Witbank and Middelburg area some 80-100kms further away.
The middlings (20Mj) to be produced are intended to be sold to Eskom, the largest buyer of coal in South Africa. Several of Eskom’s very large base load power stations are located within a 50kms radius of Moabsvelden. The Company has commenced the process of registering its interest to supply Eskom. For modeling purposes, it has been assume that the middlings will be sold at ZAR9/Mj or R180/t.
The key findings of the bankable feasibility study are:
To view the entire press release please follow the link:
http://www.irw-press.com/dokumente/Xceed_120612_English.pdf
Build-Own- Operate- Manage Option
As part of the feasibility study, the Company considered the option of the coal wash plant being provided under the terms of a Build-Own-Operate-Manage (BOOM) arrangement. To this end the Company was pleased to receive a proposal from a major South African company who is currently operating six coal washing plants in South Africa under BOOM arrangements. Should the Company decide to accept this proposal, which includes part of the civils works required for the plant, it would result in the estimated up front capital costs of development being considerably reduced to approximately A$18m. Conversely operating costs will increase as the BOOM operator will require making a profit margin on its processing operation as well as recovering its investment in the plant. The Board intends looking at all options for the funding of the project.
For and on behalf of the board of
Xceed Resources Limited
Ian Culbert
Managing Director
For further information regarding the Company, please contact the Company on +61 8 9226 0329 or refer to www.xceedresources.com.au
Information in this announcement that relates to mineral resources in respect of the Moabsvelden thermal coal project is based on information compiled by Mr Kobus Dippenaar, Pr.Sci.Nat, B.Sc Hons (Geology), GSSA, who is a senior coal geologist at Gemecs (Pty) Ltd who have consulted to the Company. Mr Dippenaar is a member in good standing of the South African Council for Natural Scientific Professions (SACNASP No. 4090079/94) as well as a member of the Geological Society of South Africa. Both organisations are Recognised Overseas Professional Organisations. Mr Dippenaar has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration, Mineral Resources and Ore Reserves’. Mr Dippenaar consents to the inclusion in the presentation of the matters based on his information in the form and context in which it appears.
The Coal Reserve estimate was prepared by Mr Van Reenen Jewaskiewitz, who is a registered Professional Mining Engineer with the Engineering Council of South Africa (ECSA) (a Recognised Overseas Professional Organisation) and has a Mine Managers Certificate of competency for coal mines. He has more than 25 years’ experience in the South African coal and minerals industries. Mr Jewaskiewitz is a full time employee of Xceed Resources Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration, Mineral Resources and Ore Reserves’. Mr Jewaskiewitz consents to the inclusion in the ASX release of the matters based on his information in the form and context in which it appears.
Leseranfragen:
Xceed Resources Ltd.
Level 9, 105 St Georges Terrace
PERTH WA 6000
Tel.: +61 (08) 9226 0329
Fax: (08) 9226 0327
E-Mail: info(at)xceedresources.com.au
Datum: 12.06.2012 - 14:26 Uhr
Sprache: Deutsch
News-ID 155479
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Town:
Wien
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