2 Feb 2012 07:45
Beacon Hill Resources Plc / Ticker: BHR / Index: AIM / Sector: Mining
2 February 2012
Beacon Hill Resources Plc ('Beacon Hill' or 'the Group')
Maiden JORC Compliant Mining Reserve Reported at Minas Moatize Coal Mine
Beacon Hill Resources Plc (AIM: BHR), the Mozambican coal producer, is pleased to report a maiden JORC compliant Coal Reserve Statement for its Minas Moatize Coal Project in the globally significant coking coal region of Tete in Northern Mozambique.
Highlights
·; Total Mineable Reserve of 42.65 million tonnes ('Mt') with potential upside of a further 7.9Mt. The Mineable Reserve represents the in situ portion of the Geological Resource that is economically mineable
·; Total Mineable Reserve includes a Marketable Reserve of 23.45Mt, representing the saleable portion after mining and processing of the resource, of which at least 8.72Mt is coking coal
·; Confirmation that Minas Moatize has a mine life of up to 14 years
·; Completion of Mine Plan, which forms a part of the Definitive Feasibility Study ('DFS') has been finalised and supports the reporting of Coal Reserves in accordance with the JORC Code
·; The DFS, due for release later this quarter, continues to be based on a 4 million tonne per annum ('Mtpa') run of mine operation producing in excess of 2Mtpa of saleable hard coking and thermal coal for the life of mine
Justin Lewis, Chairman of Beacon Hill commented: "The commercial value of the Minas Moatize Project is increasingly being confirmed. We have a Marketable Reserve of 23.45Mt of coal, of which over one third is coking coal, a proven end to end export solution as highlighted by the commencement of shipping in December 2011, near term coking coal production and the full results of the DFS due to be released later this quarter. With this in mind, we look forward to reporting our progress to our shareholders and the wider market during this highly active time for the Group."
Reserve Statement
Resource | Total Mineable Reserves1 | Marketable Reserve | Marketable Coal Qualities | ||||||||||
Measured | Indicated | Proved | Probable | Total | Yield2 | Total3 | Ash | CV | IM | VM | FC | TS | |
Location | (Mt) | (Mt) | (Mt) | (Mt) | (Mt) | % | (Mt) | % | MJ/kg | % | % | % | % |
DFS Pit | 25.45 | 17.2 | 23.45 | ||||||||||
Total | 35.92 | 30.50 | 25.45 | 17.2 | 42.65 | 23.45 | |||||||
Coal Product Type | |||||||||||||
Coking Coal | 20.45% | 8.72 | 9.50 | 32.54 | 0.85 | 17.32 | 71.32 | 0.99 | |||||
Thermal (Export) | 25.53% | 10.89 | 26.39 | 25.37 | 0.80 | 15.09 | 55.59 | 0.93 | |||||
Thermal (Domestic) | 9.01% | 3.84 | 43.16 | 18.25 | 0.86 | 13.83 | 40.40 | 1.01 | |||||
54.99% | 23.45 | 22.86 | 26.86 | 0.83 | 15.71 | 58.95 | 0.97 | ||||||
1. All reserves stated are on an air dried basis | |||||||||||||
2. Yield calculation for marketable reserves is based on a fines content of 7% | |||||||||||||
3. Reported reserves does not include 'tonnes' currently unclassified and subject to in-fill drilling programme | |||||||||||||
The Reserve Statement has been prepared in accordance with The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, "2004 Edition").
The Total Coal Reserves reported represent the portion of the Geological Resources that are economically mineable and that are supported by a production schedule and other key findings reported in the DFS. The Reserves stated as Proved and Probable Reserves have been reported in accordance with JORC guidelines and appropriate modifying factors have been applied to convert Resources to Reserves. The total Proved and Probable Reserve is 42.65Mt of which 23.45Mt is estimated to be recoverable and saleable after processing.
All reported Coal Resources are inclusive of Coal Reserves.
The Reserve Statement excludes coal that is considered "Inventory Coal" in the geological resource model. The inventory coal exists in areas of the Bananeiras, Upper Chipanga and Middle Chipanga seams, which only have a single drill hole within a fault block. Additional drilling has the potential to upgrade this target to an Indicated or Measured resource status. The estimated inventory coal within the DFS pit design is 7.9Mt, which if proved, has the potential to increase the mineable reserve and to increase the mine life by 18 months.
**END**
For further information on the Company, visit www.bhrplc.com or contact:
Justin Lewis | Chairman, Beacon Hill Resources Plc | +61 (0) 3 9627 9910 +61 439 162 369 |
Timothy Jones | Finance Director, Beacon Hill Resources Plc | +44 (0) 1372 464549 +44 (0) 7966 442985 |
John Prior | Collins Stewart Europe Limited | +44 (0) 20 7523 8350 |
Sebastian Jones | Collins Stewart Europe Limited | +44 (0) 20 7523 8350 |
Susie Geliher | St Brides Media & Finance Ltd | +44 (0) 20 7236 1177 |
Elisabeth Cowell | St Brides Media & Finance Ltd | +44 (0) 20 7236 1177 |
Notes
Beacon Hill Resources Plc
Beacon Hill Resources Plc is an AIM-listed resource company that is focused on building a portfolio of near-term production projects in commodities relating to the steel production industry.
Beacon Hill owns and operates one of only two operating coal mines producing, selling and exporting coal in the Moatize Coal Basin of Mozambique; has entered into a JV to develop a further coal tenement; and holds licences over a significant magnesite deposit in Australia.
Reserve Statement
The Reserve Statement has been based on a Resource Statement that was published by PC Meyer Consulting in a JORC compliant Competent Persons Report (CPR).
The Competent Person for reporting of coal reserves, Mr. Simon Griffiths, who is a Member of The Australian Institute of Mining and Metallurgy (AusIMM) and Society for Mining, Metallurgy, and Exploration, Inc. (SME) has sufficient experience which is relevant to the style and mineralisation and type of deposit under consideration and the activity to which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.
Mr Griffiths has reported the Coal Reserves in compliance with the guidance as defined in Appendix 5A of the ASX Listing Rules being the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (the JORC Code), 2004 Edition. Mr Griffiths has consented to being named as the author of the Reserve Statement in this announcement.