PRNS operational update23 Jan 2013 07:54
Continental Coal Ltd
Ferreira Production Update
23 January 2013
The Manager
Company Announcements
Australian Securities Exchange Limited
Level 6, 20 Bridge Street
Sydney NSW 2000
By e-lodgement
FERREIRA COAL MINE EXCEEDS BUDGETED PRODUCTION LEVELS
Continental Coal Limited (ASX:CCC, AIM:COOL) ("Continental" or "Company") the
South African thermal coal production, development and exploration company, is
pleased to announce that run-of-mine ("ROM") coal production at the Ferreira
Coal Mine has exceeded budgeted levels in the December 2012 quarter, the first
full quarter of operations in the recently acquired adjacent Prospecting
Rights.
Run of mine coal production at the Ferreira Coal Mine for the December 2012
quarter totaled 152,280 tonnes. Quarter on quarter an increase of approx. 40%
was achieved, from the 109,935 tonnes of ROM coal produced in the September
2012 quarter. Monthly ROM production has now increased for the past 5
consecutive months in FY 2013.
On 27 September 2012, the Company announced that approval had been received
from the Department of Mineral Resources to extend the Ferreira Coal Mine
opencast mining operations into adjacent and adjoining Prospecting Rights, that
it had acquired in April and May 2012. Mining operations in the September 2012
quarter had previously been challenged with operations having reached the
mining boundry and a resultant reduction in production.
During the December 2012 quarter, the Company and its mining contractors
successfully completed the initial pre-stripping for the new opencast mining
operations and moved approx 1.3 million BCM of material.
Opencast mining operations have advanced throughout the quarter, with ROM coal
production increasing from approx. 38,700 tonnes in October 2012 to approx.
57,550 tonnes in December 2012. The run-of-mine coal production in December
2012, the highest monthly production to date in FY2013, was achieved despite
the seasonal holidays.
Mining costs per tonne and total production costs per sales tonne have reduced
over the December 2012 Quarter as the mine has moved towards steady state
operations, with mining costs per tonne and total production costs per sales
tonne reduced by over 30%. FY2013 year to date mining costs per tonne and total
production costs per sales tonne at the Ferreira Coal Mine remain below
budgeted levels.
The ROM coal production for the December 2012 quarter has exceeded the ramp up
production profile advised in the September 2012 Quarterly Report, where
125,000 tonnes and 150,000 tonnes of ROM coal production were forecast for the
December 2012 and March 2013 quarters respectively.
The Ferreira Coal Mine remains on track to achieve ROM coal production of
approx. 600,000 tonnes and sales of approx. 420,000 tonnes of a high quality
thermal coal forecast for FY 2013.
"Since the Company'