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.
Mathews Capital Partners becomes substantial shareholder in Rey Resources
Sydney based fund manager Mathews Capital Partners today advised of a substantial 6.54% stake in Rey Resources (ASX:REY).
The stock was purchased between early January and Wednesday 8 September 2010, with Mathews holding 16,969,553 fully paid shares as at Wednesday 8 September.
Rey’s major asset is the 100% owned Canning Basin Coal Project which has a total JORC resource of 510 million tonnes, as per categories below, of thermal coal within a very large coal deposit.
A positive pre-feasibility study for the project has demonstrated the large scale potential of the basin.
Rey has commenced a definitive feasibility study for an initial highwall mining operation. Projections are for two million tonnes per annum of saleable coal production with an expected mine life of eight years. Drilling during 2010 is designed to provide the data necessary to complete the study.
Most key transportation infrastructure for the proposed initial operation is in place. Coal is planned to travel by road for 180 km to the Port of Derby where Rey holds a lease over port facilities, and then be shipped to the nearby growing markets in China and India.
Rey shares closed $0.025 up on the day, or 20% at $0.15.
