New Age Exploration Ltd said it had received a positive review of a 2014 scoping study, as previously updated in 2017, of its Lochinvar coal project.
COSTS
NAE owns 100% of three contiguous exploration and conditional underground mining
licences known as Lochinvar, Lochinvar North and Lochinvar South on the border of Scotland and England.
A previously defined metallurgical coal resource of 111 Mt comprises 49 Mt indicated resource and 62 Mt inferred resource.
NAE said that the review from Palaris Australia Pty Ltd confirmed that the project economics of the Lochinvar project remained “robust despite recent cost increases in the UK”.
“The reality is that the requirement for metallurgical coal in the process for steel production will remain intact for the foreseeable future and likely for decades to come,” added executive director Joshua Wellisch.
“The board continues to receive numerous enquiries relating to the Lochinvar metallurgical coal project, with geopolitical events driving a dramatic change in demand for metallurgical coal.”