11.08.14 - 03:27 Uhr

Fortbridge Media Release

Jameson Resources Ltd. [ASX:JAL] - PFS Confirms Crown Mountain Coking Coal Project, Canada

Jameson Resources (ASX: JAL) is pleased to report that the Prefeasibility Study (PFS) on its Crown Mountain coking coal project in Canada shows the development will have outstanding economics and be technically robust.


* After-tax Payback Period of 2.7 years is exceptional and serves to mitigate project investment risk.
* Internal Rate of Return (IRR) is 33 per cent pre-tax (26 per cent after-tax) on base case start-up capital cost of US339 million dollars (includes 10 per cent contingency).
* IRR increases to as high as 61 per cent pre-tax with start-up capital cost of US123 million dollars if maximum leasing option is selected.
* NPV10 US369 million dollars pre-tax (US223 million dollars after-tax) on base case, increasing to up to US410 million dollars if leasing is selected.
* Early mine life production peaks at 2 million clean tpa, levelling off at 1.7 million tpa average over the project�s 16 year mine life.
* Low life-of-mine clean coal strip ratio of 9.9:1 BCM:t supports low cost production, with an average of 7.6:1 BCM:t during the first four years of operation.
* Hard coking coal comprises approximately 84 per cent of life-of-mine sales, with the balance a low to mid volatile PCI product. Average coal sales price (all products) life-of-mine is US165 dollars/tonne
* FOB cost averages US88.64 dollars during the first four years of operation for the base case: life-of-mine average is US100.38 dollars/tonne.
* Plant yield averages 52 per cent life-of-mine, peaking in the early years with 59 per cent average in the North block.
* ROM reserves total 56 million tonnes, of which 50 million tonnes are Proven and 6 million tonnes Probable. These figures totally exclude the high potential Southern Extension inferred resource area.

The Company commenced certain longer-term environmental studies in April 2012 with the objective of fast-tracking the permitting process. This work is expected to be completed in time to meet the first production date of late 2017.

To view the full announcement please click on the link below:

To listen to the audio interview with Jameson Resources� CEO Art Palm discussing the results of the PFS and its implications for Crown Mountain, please click on the link below:

For further information please contact:

Art Palm
T: +61 89200 4473

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