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.
Rey Resources responds to ASX query after share spike
A share price spike in Rey Resources (ASX: REY) to $0.25 in intra-day trading today, from $0.17 on Wednesday 3 November, has prompted a price query from the ASX.
The company said it is not aware of any material information that has not been announced to the market.
Of interest, Rey did suggest two reasons for the sudden investor interest in the stock, including; the recent price increases in thermal coal traded internationally.
Secondly, Rey stated, 'that Buru Petroleum (ASX: BRU) has reported gas in a well in the Canning Basin and the significant increase in the price of BRU's securities since 5 November.
'The Company is the holder of Petroleum Exploration Permits EP 457 and EP 458 in the Canning Basin.
'In January 2008 Gujarat NRE Mineral Resources Ltd entered into an agreement with Rey by which it paid Rey $275,000 and acquired a 90 per cent interest in EP 457 and EP 458 which partially overlay Rey's mineral exploration licences (Agreement).
'By the Agreement, Gujarat has exploration commitments of $4.85 million over six years.
'Rey is free carried until the grant of a petroleum production licence.'
Rey shares continue to be well supported in afternoon intra-day trade, last changing hands at $0.24 on volume of 2.7 million.
