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 appoints two new non-executive directors
Rey Resources (ASX: REY) has appointed Brett Clark and Lex Graefe as non-executive directors, effective from 1st October 2011, as part of a planned succession process to position the company for the next phase in its development.
Clark has a track record of over twenty years in the resources sector with specific experience in corporate roles that have focused on strategic operational outcomes and implementation of major resource projects studies.
Clark currently advises Murchison Metals (ASX: MMX) on their major JV projects and has previous director or executive experience with Wembley Resources, Tethyan Copper, Ernst and Young, Snowden Group, Rio Tinto/Hamersley Iron and Western Mining.
Graefe has worked in the mining industry for the last 30 years in Australia, Africa and Asia. His experience includes leadership roles in project studies, engagements with governments and stakeholders, and various CFO roles.
Graefe has previously held the role of CFO/Company Secretary for Sphere Resources (ASX: SPH) and has also held senior leadership roles with Shield Mining (ASX: SHX), Resolute Mining (ASX: RSG) (Tanzania), Rio Tinto Indonesia and Rio Tinto India.
Charlie Lenegan, Rey Resources' chairman, said “we are delighted to have secured Mr Clark and Mr Graefe who will bring significant project strategy, project development, commercial and industry knowledge to the Rey Board."
'This is important following the completion of the Definitive Feasibility Study in June 2011 as the Company moves forward with key approvals processes and with the planning for project development and further growth of its resource base”.
Alan Humphris, who has been a non-executive director since July 2004 and James McClements, who has been a non-executive director since August 2007 will resign from the board on 1 October 2011.
On June 27 Rey completed the Definitive Feasibility Study (DFS) on the development of its wholly owned Duchess Paradise thermal coal export project, confirming it as economically robust and technically viable.
Cashflows are estimated at EBITDA $504 million over the first 5 years of sales against a market valuation of under $75 million. The project is likely to see Rey maximise the value of its large landholding in the Canning Basin.
