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Aspire Mining announces outstanding PFS results for Ovoot Early Development Project

Coal News - Published on Fri, 08 Mar 2019

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Mongolian metallurgical coal and infrastructure company, Aspire Mining Limited announced the results of the Ovoot Early Development Project Pre-Feasibility Study undertaken by it and the lead PFS consultants, FMS LLC. The OEDP involves mining a relatively low ash, low strip ratio and high yielding “fat”coking coal from a starter pit that sits within the existing 255Mt Ovoot JORC ore reserve. The washed coal will then be delivered via a 560km special purpose haul road that will be constructed to connect to a rail head at Erdenet. The coal will then be delivered on the Mongolian rail network that has confirmed available capacity for the OEDP coal through to the Mongolian/China border crossing of Erlian to Chinese end customers.

The Base Case OEDP starter pit utilises a 36.8Mt JORC ore reserve (OEDP Reserve3) carve out from the Ovoot Project Reserves and supports an initial 9.2 year mine life whilst development of the planned Erdenet to Ovoot Rail connection continues in parallel. The OEDP Base Case will transform Aspire into a significant pure play coking coal producer positioned in the second quartile of the global cost curve.

The OEDP Extended Case highlights the attractive economics associated with a longer life continuation of the OEDP. The Company considers the strong forecast cashflow from the OEDP will be highly complementary to achieving a much larger production profile based on the future rail connection. A medium-term large scale, rail based production project remains the Company's optimal outcome.

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Posted By : Rabi Wangkhem on Fri, 08 Mar 2019
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