Aspire Mining (ASX:AKM) has received revised capital estimates for the development of its Nuurstei Coking Coal Project located in Mongolia.
The new estimates come from mining contract and services company, Ferrostaal Mining Services LLC, and from German washplant design and construction company, MBE Coal & Minerals Technology GMBH.
MBE has estimated a capital cost of US$10-12 million for the plant as well as foundations, piping and materials handling.
In addition, Ferrostaal has provided a desk top analysis of the cost of associated infrastructure required to establish an operation at Nuurstei.
The desk top estimation is in the range of US$5.75-7.75 million with a 10% contingency allowance.
The above translates into a capital cost estimate for the Nuurstei Project of circa US$16-20 million.
These estimates are preliminary and will continue to be confirmed over the course of 2017.
Near-term opportunity at Nuurstei
Aspire currently owns 45% of the Nuurstei Coking Coal Project located in Mongolia and has the option to exercise a US$1 million option to acquire an additional 45% interest in the project.
A conceptual mining study shows a competitive delivered cost for hard coking coal into northern Chinese markets based on trucking.
Nuurstei is seen as a starter project for Aspire while it progresses the 100% owned Ovoot Coking Coal Project, Mongolia’s second largest coking coal project.
During 2016, a maiden JORC resource at Nuurstei was estimated measuring 12.85 million tonnes.
The mining license application process is advanced and additional drilling and sampling is required to convert Inferred resources into Indicated resources and build mine life.