Cougar Energy (ASX: CXY) has completed a conceptual mining study demonstrating that operating and capital costs for a standalone Mackenzie PCI Coal Project in Queensland are within expectations.
An initial coal quality assessment has also confirmed that all seams at the project have the potential to produce a low volatile PCI product.
In addition, Crucible Swelling Number values of up to 7 were identified within the Aries seam. Further investigations will be conducted in future studies to determine the potential for a semi soft product from this seam.
The conceptual mining study has estimated capital costs at $860 million with operating costs of between $90 and $130 per tonne based on comparisons to a range of Australian long wall producers.
This is based on exploiting the EPC limits and maximising potential long wall extraction. Considering the northern block, separate access would be required under the current EPC configuration, bord and pillar was assumed for this area. Drift access was assumed to the Aries seam.
For the purposes of the conceptual study, all surface infrastructure was assumed to be located off site near the existing rail way. Further land access and acquisition will form the basis of future investigations
The mining depth at Mackenzie for the Aries seam is considered within the middle of the range for Australian long wall operations. The initial mining target is the Aries seam before production continues at depth to the Pollux and Pisces seams.
Considering the potential size, depth and level of definition of the Mackenzie resource, a nominal production rate of 4Mtpa ROM is assumed.
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