PERTH (miningweekly.com) – An updated prefeasibility study (PFS) into the Crown Mountain coking coal project, in Canada, has reduced the capital cost estimate from the $339.7-million anticipated in the original 2014 PFS, to $281-million.
Capital costs could be reduced further by leasing or using low-hour used equipment, ASX-listed Jameson Resources said on Wednesday.
The updated PFS also estimates that the project will have a pre-tax net present value of $440-million, and an internal rate of return of 40%.
The Crown Mountain project is expected to produce 1.7-million tonnes a year of coal over a mine life of 16 years. Free-on-board cash costs will average some $66/t during the first four years of operation, and will reach $75/t over the life-of-mine.
Jameson noted that with the updated PFS in place, the company can start negotiations with interested end-users or offtake partners with the aim of moving the Crown Mountain project towards development. The company will also move forward with planning the permitting and definitive feasibility study process as it moves closer to an investment decision.