Coalsp rCoalspur Mines LtdMines Ltd · Hinton Coal Project (Hinton East and West) Saleable Coal...
Transcript of Coalsp rCoalspur Mines LtdMines Ltd · Hinton Coal Project (Hinton East and West) Saleable Coal...
Coalsp r Mines LtdCoalspur Mines Ltd
C P t tiCompany Presentation
Gene WusatyManaging Director & CEOManaging Director & CEO
February 2010
ABN 73 003 041 594
Investment Highlights
Positive Scoping Study Completed Scoping study completed on the Hinton Coal Project by Wardrop Engineering Inc. 7.4Mtpa run-of-mine producing 4.0Mtpa saleable coal with a minimum 14 year mine life Low operating costs of US$48.40/t FOB Ridley Island Coal Terminal Low infrastructure and plant costs of US$185 million
Large and Growing Coal Resource Base
Project leverages off existing 1st world underutilised infrastructure Confirmed the potential economic and technical viability of the project
Large and Growing Coal Resource Base JORC / 43-101 Coal Resource of 467Mt - 90% in the Measured and Indicated category 24,638 ha of coal bearing leases with the recent acquisition of crown coal leases Export quality, low sulphur thermal coal suitable for the growing Asian utilities market
World Class Coal Location & Infrastructure Unique position adjacent to the coal mining town of Hinton, Rail, major highway and power infrastructure Development of project not dependant on infrastructure - port and rail have excess capacity Export orientated coal operations have exported from the region to Asia for over 30 years
Strong Board and Management Top tier proven management team with experience in developing listed resource companies
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Top tier, proven management team with experience in developing listed resource companies Highly experienced operations team being assembled by CEO Gene Wusaty (ex. Ivanhoe
Coal/SouthGobi)
Scoping Study Highlights
Hinton Coal Project (Hinton East and West)
Saleable Coal Production 4.0Mtpa
ROM Coal Production 7 4MtpaROM Coal Production 7.4Mtpa
Life of Mine 14 years
FOB Operating Costs US$48/t
Project CHPP & Infrastructure Capital US$185M
Potential Cash Flows (pre-tax) US$150Mpa(p ) p
Scoping study completed by major multidisciplinary international engineering firm
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Wardrop Engineering Inc.
Coal Valley Location
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Our Coal Projects
S b t ti l t t iti f 24 647 h t i th C l V ll iSubstantial tenement position of 24,647 hectares in the Coal Valley region
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Available Rail & Port Capacity
Ridley Terminal (12mtpa + Exp)Ridley Terminal (12mtpa + Exp)
Westshore Terminal (28mtpa)
CN Rail (Excess Capacity Available)
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Scoping Study Results
Operating Costs Capital CostsUS$/t FOB Ridley Island Coal Terminal
Coal and Waste Mining 21.3
Coal Handling and Processing 3.5
US$ million
Breaker Station & Stockpiles 13.9
Coal Wash Plant 30.7
General and Administrative 0.9
Reclamation 0.9
Rail Transportation (CN Rail) 17 4
Clean Coal Dryer 18.4
Clean Coal Rail Load-out 21.4
Belt Conveyors 56 6Rail Transportation (CN Rail) 17.4
Port Costs (Ridley Island Coal Terminal) 4.4
FOB Operating Costs 48.4
Belt Conveyors 56.6
Overall Site 22.3
Miscellaneous Site 14.1
CN Rail Siding 7.2
Project CHPP & Infrastructure Capital 184.6
Project Indirects, EPCM & Owners Costs 69.3
Mining Equipment 151.6 million
Leasing and/or ContractMining Options are beingMining Options are being
considered
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Scoping Study Potential Economics
Key Potential EconomicsBase Case
Price Case-10%
Base Case Independent
Forecast+10%
US$78/t US$87/t US$96/t
US$ millionUS$ million
Coal Sales Revenue 4,180 4,682 5,145
Cash Operating Costs (2,574) (2,574) (2,574)
Cash Operating Margin (Pre-Tax) 1,606 2,108 2,571
Potential Cash FlowP A (P T ) 114 150 183Per Annum (Pre-Tax) 114 150 183
Scoping Study has demonstrated the Potential economic viability of the Project
Robust economics allow for potentially quick paybacks in many price scenarios
Scoping Study has demonstrated the Potential economic viability of the Project
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Potential Site Arrangement
P j t F iliti
CLEAN COAL OVERLAND CONVEYOR
Project Facilities Mine & Infrastructure
Mine Maintenance Complex
RAW COAL OVERLAND CONVEYOR
Breaker Station
Raw and Clean Coal Conveyors
Coal Washplant and DryerCONVEYOR Coal Washplant and Dryer
Clean Coal Rail Load-Out
Site Services and Utilities
Tailings Containment Pond
Ancillary Buildings
Scoping Study has demonstrated the Potential technical viability of the Project
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Enhancement Opportunities
Potential EffectUnit Operating
C tCoal Production &
S lCosts Sales
Inclusion of Additional Resources in the mine plan including potential resources in the Coalspur Project area
Increase Production rate and mine life of the project
Sale of Mcleod Seam (~5.8Mt) to potential markets including local cement and power markets
Addition of a Dragline to the mine plan for waste removal
F h Mi O i i i i l di i i b kfilli d Further Mine Optimizations including in-pit backfilling and larger Truck & Shovel combination
Post completion of the drill program review the potential for Post completion of the drill program review the potential for Higher Yields to improve saleable coal output
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JORC Coal Resource
Measured Indicated M & I Inferred M, I & IHinton East 210 800 85 300 296 100 43 100 339 200Hinton East 210,800 85,300 296,100 43,100 339,200
Hinton West 87,600 37,900 125,500 2,600 128,100
Total Coal Resource 298,400 123,200 421,600 45,700 467,300
Shallow dipping seam are potentially amendable to low cost large truck / shovel
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Shallow dipping seam are potentially amendable to low cost, large truck / shovel mining techniques currently employed at typical world class coal mines
Further Resource Potential
Coalspur ReinterpretationCoalspur Reinterpretation
In 1982 Denison Mines Ltd submitted a large coal project for mine operating license
Geological modeling to be completed by March 2010 quarter
Significant Land Position acquired in Dec ember 2009 of 16,000 + ha,
Significant resource upside in existing coal leases
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Coal Quality Comparison
Hinton Coal Project Washed Clean Coal QualityCoal Characteristic Gross As Received Air Dried Basis
Moisture 11.5% 4.5%
Ash Content 11.1% 11.9%
Volatile Matter 31.2% 33.7%
Fi d C b 46 2% 49 9%Fixed Carbon 46.2% 49.9%
Total Sulphur 0.3% 0.3%
Calorific Value 5,758 kcal/kg 6,212 kcal/kg
Indicative Coal Quality Comparison (1)
Canada Australia Indonesia Russia China
Company Coalspur Sherritt Rio Tinto Xstrata KPC SUEK Shenhua
Brand Hinton Coal Valley Blair Athol Rolleston Pinang Tugnuisky No. 3
Total Moisture (ar) 11.5% 10.0% 18.0% 16.0% 19.0% 11.0% 14.0%
Inherent Moisture (ad) 4.5% 4.5% 5.5% 9.5% 13.0% 2.5% 2.5%
Ash (ad) 11.9% 11.1% 8.7% 7.5% 4.5% 14.0% 12.0%
Volatile Matter (ad) 33.7% 34.7% 27.6% 30.0% 39.0% 35.0% 36.0%
Total Sulphur (ad) 0.30% 0.25% 0.36% 0.55% 0.50% 0.30% 0.50%
Specific Energy (gar) 5,758 6,000 5,865 5,970 5,700 5,628 5,866
Source 1: Wood Mackenzie
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Coalspur’s Future
Hinton Coal Project Coal Resource and Coal Resource Upgrade
Assembly of Top Tier Management Team
Strengthened Cash Position through Institutional Placement
Additional Land Consolidation in Coal Bearing District
Scoping Study displaying Economic & Technical Viability of Project Coal Quality Drilling and Bulk Sampling on Hinton 1st Qtr 2010
Coalspur Project JORC Resource 1st Qtr 2010
Coalspur Project Scoping Study 2nd Qtr 2010
Environmental Baseline Studies 4th Qtr 2010
Feasibility Studies 4th Qtr 2010
TSX Listing 4th Qtr 2010
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Strengthening Thermal Coal Pricing
5 Feb 10 globalCoalNEWC Weekly IndexNEWC Weekly Index
US$91/t
Source: globalCoal , Broker Research Reports
Coalspur well placed to take advantage of strong price growth in the thermal coal
Recent spot market approaching US$100/t FOB Newcastle
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Coalspur well placed to take advantage of strong price growth in the thermal coal markets
Strong Board & Management
Gene Wusaty
Highly respected Canadian based coal executive with global experience in the development and commissioning of coal mines
Former Chief Operating Office with South Gobi Energy and President of Ivanhoe Mines coal Gene WusatyManaging Director & CEO
division
Former Chief Operating Officer of Grande Cache Coal where he was responsible for the development and commissioning of an underground and surface mine in Alberta, Canada
Former General Manager at Fording Coal (now Teck Coal)
Ian MiddlemasNon Executive Chairman
Highly respected Australian based resource company executive with significant experience in finance and capital raisings
Current Chairman of a number of ASX listed natural resource companies including Mantra Resources and Pacific Energy Ltd
Anastasios ArimaExecutive Director
Australian based resource company executive with experience in business development and capital raisings; engineering background
Denis LehouxVice President, Operations
Highly experienced (+25 years) Canadian mining engineer; has been involved in the start up and commissioning of a number of Alberta based coal mines
Strong operational and corporate team assembled to develop the projects
Dermot LaneVide President, Development
Highly experienced (+25 years) Canadian coal mining executive involved in the permitting, regulatory and approval processes of various Western Canadian coal mines
Proven development experience in the resource sector Strong operational and corporate team assembled to develop the projects
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Corporate
Coalspur Mines Ltd @ February 2010
Fully Paid Ordinary Shares (ASX: CPL) 307.8 million
Market Capitalisation Undiluted (@ A$0.35) A$107.7 millionMarket Capitalisation Undiluted (@ A$0.35) A$107.7 million
Listed Options (ASX: CPLO)(Expiry 30 June 2011, Exercise Price A$0.08) 56.7 million
Unlisted Options 17 4 millionp(Various Expiry and Exercise Prices) 17.4 million
Performance Shares(Conversion Milestones: Feasibility Study; 1mtpa Production) 50.0 million
Cash ~A$8 7 million(31 December 2009) ~A$8.7 million
Major Shareholders:
Directors & Associates 26.1%
Other Top 40 37.7%
General Public 36.2%
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Appendices
ADDITIONAL INFORMATIONADDITIONAL INFORMATION
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Scoping Study Parameters
Production ParametersROM Coal Production Rate 7 4Mtpa
Economic Parameters
S l bl Q lit 6% disc. NEWCROM Coal Production Rate 7.4Mtpa
Saleable Coal Production Rate 4.0Mtpa
Life of Mine (“LOM”) 14 years
Saleable Quality 6% disc. NEWC Benchmark
FOB Point Ridley Island Coal Terminal
2013 2025ROM Coal Mined LOM 99.2Mt
Clean Coal Produced LOM 53.6MtIndependent Price Forecast
2013 2025
US$73/t US$95/t
LOM Average
US$87/t
Waste Mined LOM 461.9Mbcm
Mining Method Truck & Shovel
Exchange Rate 2013(US$:C$) 0.87
Alberta Provincial Tax 10%
Coal Processing Heavy Media – 3 Stage (Coarse, Fine and Ultra-Fine)
Breaker Station
Canadian Federal Tax (2013) 15%
1% Mine Mouth
Coal HandlingROM Coal Conveyor
Clean Coal Conveyor
Rail Load-Out
Alberta Coal Royalty 13% Net Revenue (After Payback of Project
Capital)
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Mine & Process Flowsheet
1. Open Pit Mining
Open Pit mining utilizing large standard Truck & Shovel methods
2. Breaker StationCoal dumped to hopper feeding rotary
ROM coal Mined in 15 meter benches and delivered to Breaker Stations ROM Stockpiles
Waste mined and trucked 1.5-2.0km to waste dumps
Coal dumped to hopper feeding rotary breaker
Raw coal sized to 150mm x 0mm
Raw Coal conveyed to plant raw coal stockpiles
3. Coal Processing Plant
4. Rail Load-out
Live coal stockpile capacity of 20,000 tonnes
CN rail to provide coal freight service to Ridley Island Coal Terminals
Coal process plant utilises 3 stage heavy media separation to beneficiate the coal
Thermal coal dryer utilised to dry coal to 11.5% spec. moisture
Clean coal conveyed to rail loadout live
Ridley Island Coal Terminals
S i St d h d t t d th P t ti l t h i l i bilit f th P j t
y
stockpile
Plant stockpile capacity of 80,000 tonnes
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Scoping Study has demonstrated the Potential technical viability of the Project
Disclaimer & Regulatory DisclosuresThis document has been prepared as a summary only, and does not contain all information about the Company’s assets and liabilities, financial position and performance, profits and losses, prospects and therights and liabilities attaching to the Company’s securities. This document should be read in conjunction with any public announcements and reports (including financial reports and disclosure documents)released by Coalspur Mines Limited. The securities issued by the Company are considered speculative and there is no guarantee that they will make a return on the capital invested, that dividends will be paidon the Shares or that there will be an increase in the value of the Shares in the future. Further details on risk factors associated with the Company’s operations and its securities are contained in the Company’sprospectuses and other relevant announcements to the Australian Securities Exchange.
Some of the statements contained in this release are forward‐looking statements. Forward looking statements include but are not limited to, statements concerning estimates of coal tonnages, expected costs,statements relating to the continued advancement of the Company’s projects and other statements which are not historical facts. When used in this document, and on other published information of theCompany, the words such as “aim”, “could”, “estimate”, “expect”, “intend”, “may”, “potential”, “should” and similar expressions are forward‐looking statements.
Although the company believes that its expectations reflected in the forward‐looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual resultswill be consistent with these forward‐looking statements. Various factors could cause actual results to differ from these forward‐looking statements include the potential that the Company’s projects mayexperience technical, geological, metallurgical and mechanical problems, changes in product prices and other risks not anticipated by the Company or disclosed in the Company’s published material.
The Company does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any recipient of this document. Recipients of this documentshould carefully consider whether the securities issued by the Company are an appropriate investment for them in light of their personal circumstances, including their financial and taxation position.
The information in this report that relates to process capital costs and associated infrastructure is based on information compiled by Mr. Kevin Souza, who is a Member of the Association of ProfessionalEngineers and Geoscientists of British Columbia. Mr. Souza is a full‐time employee of Wardrop Engineering Inc., who are consultants to Coalspur. Mr. Souza has sufficient experience which is relevant to thestyle 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 Reportingof Exploration Results, Mineral Resources and Ore Reserves (The JORC Code). Mr. Souza consents to the inclusion in this report of the matters based on his information in the form and context in which itappears.
The information in this report that relates to economic financial analysis is based on information compiled by Mr. Miloje Vicentijevic, who is a Member of the Association of Professional Engineers, Geologistsand Geophysicists of Alberta. Mr. Vicentijevic is a full‐time employee of Wardrop Engineering Inc., who are consultants to Coalspur. Mr. Vicentijevic has sufficient experience which is relevant to the style ofmineralisation 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 ofExploration Results, Mineral Resources and Ore Reserves (The JORC Code). Mr. Vicentijevic consents to the inclusion in this report of the matters based on his information in the form and context in which itappears.
The information in this report that relates to coal testing review, mineral processing, and process operating costs is based on information compiled by Ms. Ting Lu, who is a Member of the Association ofProfessional Engineers and Geoscientists of British Columbia. Ms. Lu is a full‐time employee of Wardrop Engineering Inc., who are consultants to Coalspur. Ms. Lu has sufficient experience which is relevant tothe 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 forReporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code). Ms. Lu consents to the inclusion in this report of the matters based on his information in the form and context in which itappears.
The information in this report that relates to Coal Resources is based on information compiled by Mr. Robert J. Morris, who is a Member of the Association of Professional Engineers, Geologists andGeophysicists of Alberta. Mr. Morris is a full‐time employee of Moose Mountain Technical Services, who are consultants to Coalspur. Mr. Morris has sufficient experience which is relevant to the style ofmineralisation 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 ofExploration Results, Mineral Resources and Ore Reserves (The JORC Code). Mr. Morris consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to mining, mining capital, and mine operating costs is based on information compiled by Mr. Jim H. Gray, who is a Member of the Association of Professional Engineers,l d h f lb d b f h f f l d f h l b f ll l f h lGeologists and Geophysicists of Alberta and a Member of the Association of Professional Engineers and Geoscientists of British Columbia. Mr. Grey is a full‐time employee of Moose Mountain Technical
Services, who are consultants to Coalspur. Mr. Grey has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertakingto qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code). Mr. Grey consents to theinclusion in this report of the matters based on his information in the form and context in which it appears.
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Perth Office Calgary OfficeLevel 9, The BGC Centre
28 The EsplanadePerth WA 6000
Suite 611 - 550 11th Ave. Calgary SW, Alberta
T2R 1M7 Canada
Gene WusatyManaging Director & Chief Executive OfficerManaging Director & Chief Executive Officer+1 403 975 7901
Anastasios ArimaAnastasios ArimaExecutive Director+61 8 9322 6322