SAWIN PROJECT

Sawin represents Balamara’s flagship  asset with its great size and scale of approx. 1.200 Mt highest quality thermal coal total JORC Resource within the 137 sq. km zone of the Sawin Deposit concession area. The Sawin Project lays in the heart of the Lublin Coal Basin, considered as the most prospective coalfields in Europe, with one operating colliery – KWK Bogdanka, being the most profitable and efficient Polish coal mine. Exploration works conducted by Balamara revealed highly favourable mining conditions of the Sawin Deposit, with great seam continuity and length with only a few minor faults, which makes Sawin a perfect project for efficient longwall mining.

Key features

The Sawin concession covers an area of 137km2 in the Lublin Basin, near to the world-class thermal coal mine operated by listed Polish mining company Lubelski Wegiel Bogdanka SA (“Bogdanka”). Balamara applied for the Sawin Concession in 2013, not long after the Company secured its first Polish coal asset, the Nowa Ruda Coking Coal Project. The Company has been awarded the exploration rights for Sawin, and currently has permits for drilling 9 holes over 7000m combined.


JORC Resource

Balamara appointed HDR Incorporated (“HDR”) to complete a  JORC (2012) compliant Mineral Resource estimate for the Sawin Thermal Coal Project in March 2015.

Resource Classiffication Mass Ash Moisture GCV Volatile Matter Relative Density Total Sulphur
Mt adb % adb % adb kcal/kg adb % adb % adb %
Inferred 1.200 10.0 3.5 6.900 33.0 1.3 1.7
TOTAL 1.200

The maiden coal resource has been compiled from a total of 52 historical drill holes. A minimum seam thickness limit of 0.6m and a raw ash content of 30% have been used to define coal resources. Coal quality estimated on air-dried basis.


Project Pathway


Concession Area (sqr. km)


Boreholes drilled within Balamara's Drill Campaign


Approx. combined lenght of drilled boreholes (m)


Historical Boreholes applied in Geological Report


Total JORC Resource (Mt)

Exploration Concession Area


SAWIN Announcements:

16/06/2015

Sawin PFS Update

Governmental Decisions:


Exploration concession decision for SAWIN II Deposit of Minister of Environment of 29/12/2014

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Mining usufruct establishment contract for SAWIN II Deposit

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Drilling campaign schedule approval issued by District Mine Office in Lublin

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Deposit Characteristics

A qualitative review of modelled seam floor elevation and thickness contours, statistical analysis of thickness and coal quality attributes and general geological setting all show that the seams appear to display a relatively high degree of continuity.


Exploration Works

Coal resources have been estimated and classified in accordance with the guidelines contained within the Australian Guidelines for the Estimation and Classification of Coal Resources (2014 Edition) and are reported in accordance with the JORC Code (2012). The historical drilling was conducted under the direction of the Polish Geological Institute and the majority of the drilling was completed by rotary core. Every drill core was geologically logged prior to sampling. All information with respect to the strata lithology, core recovery, seam correlation, coal quality and geophysics have been recorded using a standard visual log format. Cores were split and samples submitted to a certified coal laboratory within Poland. As part of this system, all final drill-hole logs are signed off by a Competent Person authorised by the Polish Geological Institute. This system of certification as well as quality of historical drill logs has been controlled and inspected by independent international geology consultants appointed by HDR Salva – Balamara’s contractor – during a site visit conducted on November 2014 at the offices of the Polish Geological Institute in Warsaw. Historical drill logs were considered as appropriate and coherent with all JORC Standards of Resource Reporting, while the system of certification was observed to have been in place for all historical holes drilled.

The Company is currently finalising the in-fill drilling programme at Sawin, and other necessary pre-works prior to commencing a Definitive Feasibility Study (DFS).

 


Mining Method

Taking advantage of high level of continuity and favourable tectonic conditions, with only minor faults all over the deposit, the Sawin Project has been designed to apply the longwall mining method. With high continuity grade, it’ll be possible to develop even approx. 5 km long longwall panels, applying either shearer or plough systems- depends of seam thickness and anticipated mining height. Inseam preparation works are designed to be done on rectangular cross-section of a roadway, utilizing highly efficient continuous miners with application of roof and sidewall bolting. Application of this technology will minimalize the amount of rock within ROM.


PFS Highlights

Outstanding results have been achieved from the completed Pre-Feasibility Study (PFS) for Sawin by experienced international technical consultants, HDR Salva. The PFS was completed in June 2015 and demonstrates robust project economics and exceptional returns, with highlights including:

  • 288 Mt      Mineral Resources within Optimised Mine Plan
  • US$ 921 M      After-tax Net Present Value (NPV)
  • 51 years   –    Initial Mine Life
  • US$ 1.75 B   –   Cumulative Free Cash Flow
  • US$ 42.8/t ROM   –   Average life-of-mine total cash cost,  Free-on-Rail (FOR) mine site.
  • 5.8Mtpa   –   Planned average production over current mine life (longwall extraction)
  • US$151M   –   Capital development cost, inclusive of 25% contingency, excluding leased equipment capital cost.
  • The company is currently working on revisions to this PFS with further information form the 2015/2016 drilling campaign to assist with further mine planning. The company expects operating costs to reduce and the overall NPV to increase.