Directors down mine life up
Clermont miner speculates new resource data could increase mine life by 50%
Wednesday 06 September 2017
Less than a month after officially restarting mining operations at the Blair Athol coal mine, new owners Terracom have released data which increases the mines life by one year, based on current annual production.
Based on a re-assessment of existing boreholes and historical data the Blair Athol mine now officially has a mine life of eight years.
The increased mine life calculation links directly to an upgrade to the “ore reserve” to 15.6 million tonnes of thermal coal.
An ‘Ore Reserve’ is the economically mineable part of a Measured or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at Pre-Feasibility or Feasibility level.
Terracom has also been able to increase the mines measured coal resources significantly.
Unlike ore reserves measurement, the ore resource size is just a measure of how much coal is in an area and does not consider the economics required to get them out.
However, the new JORC resource statement increases total measured resources at the mine from 12.4 million tonnes of coal to 21.9 million tonnes. Terracom says that they are working towards having a proportion of the measured resource converted to “ore reserves” which they speculate could add from three to five more years to mine life.
Meanwhile, there has been a major board restructure with Wal King (formerly of Leightons) now Non-Executive Chairman of the Board replacing Cameron McRae who will step down as Executive Chairman but remain on the Board as a NonExecutive Director.
Mr David Stone has also resigned as an Executive Director effective immediately, and Mr Neville McAlary is now responsible for the Blair Athol Mine and will report directly to Wal King in a move that Terracom says will reduce overheads.