Huguenot Property 2020 PEA Highlights
Colonial Projects Overview:
Gordon Creek Metallurgical Coal Project (Flatbed Property)
Gordon Creek Project (Flatbed) 2018 PEA
Highlights
•
•
The Gordon Creek Project has an indicative after-
tax (and royalty) NPV of US$691 million (CAD$898
million) using a 7.5% discount rate, and an IRR of
24.4%, based on a weighted average coking coal
price of US$164.8 per tonne and a premium
pulverized coal injection coal price of US$140.5 per
tonne.
PEA 2018
Overall Average
Coal Price/Tonne
CIC
Gordon Creek Project (Flatbed)
NPV (millions) at Varying Discount Rates with IRR
5%
7.5%
10%
IRR%
US$160.5
CAD$208.7
$1,081
$691
$446
24.4%
$1,405
$898
$579
24.4%
Note: The exchange rate used in this report is US$1.00 equals CAD$1.30
The Gordon Creek PEA is based on a conceptual underground mine plan that targets 111.6 million ROM tonnes
of resource, with a yield of 51%, producing 57.4 million tonnes of clean coal over a mine life of 30 years.
·
Geological modeling and resource estimation of the Gordon Creek deposit have identified an Inferred coal
resource of 298 million tonnes.
.
•
In full mine operation, projected clean coal production ranges from 1.6 to 2.6 Mtpa, and averages approximately
1.9 Mtpa.
The pre-production capital cost for the underground mine is estimated at US$300 million (CAD$391 million), with
additional sustaining capital of US$406 million (CAD$528 million) over the LOM. The proposed payback of initial
capital is estimated to be within three years from the start of coal production.
The Gordon Creek project's total cash operating cost is estimated at US$80.91 (CAD$105.19) per clean coal
tonne. This includes direct mine site costs of US$41.16 per tonne, offsite costs (transportation and port charges) of
US$25.42 per tonne and indirect costs of US$14.33 per tonne.
TSX-V: CAD
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