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Additional Information
Market: ASX
Sector: General Mining - Coal
EPIC: REY
Latest Price: A$0.12  (0,00%)
52-week High: A$0.28
52-week Low: A$0.11
Market Cap: A$43.46M
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Rey Resources
www.reyresources.com

Rey Resources (ASX: REY) is thermal coal development company with a large resource and major land position of 8,000km2 in the emerging Canning Basin of Western Australia. A Pre Feasibility Study on the firm’s maiden 511Mt JORC resource at Duchess Paradise was completed in January 2010 and revealed a 2Mtpa highwall mining export thermal coal operation, commencing production in 2013, to be financially robust. Capital costs are estimated at A$113 million and operating costs at A$60/t FOBT Derby, where Rey has its own port and loading facility. A major exploration program in 2010 over 100kms of subcrop will seek to extend the 8 year life of the proposed operation and add new resources.

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Gujarat extends offer for Rey Resources

11th Jun 2010, 9:16 am

Gujarat NRE Coking Coal (ASX: GNM) has extended its off-market takeover bid for all of the ordinary shares in Rey Resources (ASX: REY) to Friday, 9 July 2010.

Gujarat has received acceptances for only 12 per cent interest from Rey Resources shareholders as at 4 June 2010.

Rey had successfully fended off an earlier offer from Crosby Capital (Holdings) Limited.

In January 2010, Rey announced that a Pre-Feasibility Study on Rey’s 100 per cent owned Duchess Paradise Project demonstrated a strong economic case for development. It is based on the 511 million tonne JORC resource that was reported in 2009.

Kevin Wilson, managing director of Rey, is aiming to develop its thermal coal resource to support an export mining operation through Derby port, via an initial two million tonnes per annum production of saleable thermal coal from highwall mining at Duchess Paradise.

The basin is well situated to feed the strong Asian demand for Australian export coal for power generation. At the Duchess Paradise project, Rey is concentrating on the near surface coals, which can be extracted by a technique known as highwall mining.

The project has a NPV of $161 million based on an 80c exchange rate and $88 million based on a 90c exchange rate. The expected payback is less than 2.5 years.

Rey has committed to a Definitive Feasibility Study for the Duchess Paradise surface operations for a potential larger underground mining operation. 

 

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