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 in a trading halt pending capital raising announcement
The ASX has granted a trading halt to Rey Resources (ASX:REY) pending an announcement by the company of a capital raising.
Rey has not yet announced which project the potential new funds will be allocated to, but earlier in the week the company announced a massive potential thermal coal resource at its Duchess Paradise project.
The project is ideally located in the Canning Basin of Western Australia for export to coal strapped markets of India (and China), with Rey able to fend off two takeover offers from Asian suitors attempting to acquire Rey at pre-definitive study and project development prices.
The 2010 drill program saw Rey progress Duchess Paradise Project in a number of areas.
A pre-feasibility study demonstrated project viability on a 511 million tonne thermal coal JORC resource, with an initial highwall mining operation of 2 million tonnes per annum with a 20 year minelife for export was estimated to have a pre tax net present value of; $88 million at A$/US$ 90c and US$80/t (Newcastle 6,300gar).



















