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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Prairie Mining Limited | LSE:PDZ | London | Ordinary Share | AU000000PDZ2 | ORD NPV (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 11.50 | 11.00 | 12.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMPDZ
RNS Number : 7859U
Prairie Mining Limited
23 January 2017
PRAIRIE MINING LIMITED
NEWS RELEASE | 23 January 2017
PREMIUM QUALITY HARD COKING COAL CONFIRMED AT DEBIENSKO
HIGHLIGHTS:
-- Following the acquisition of the fully permitted Debiensko Hard Coking Coal Project in October 2016, Prairie has recently received results from a fully cored borehole drilled at the Project
-- The results confirm historical data for the Project which indicate that Debienkso hosts a range of premium quality hard coking coals comparable to internationally traded benchmark coking coals
-- Given favourable regional supply and demand dynamics, coal of this quality will be in significant demand by steelmakers across Europe and attract premium pricing
-- Coking coal is classified by the European Commission as a "Critical Raw Material" and of the 80Mt of coking coal consumed in Europe per year, 80% is imported
-- A maiden JORC Resource Estimate for Debiensko will be announced in the coming weeks to support the Scoping Study mine plan which remains on track for completion during Q1 2017
Prairie Mining Limited ("Prairie" or "Company") is pleased to announce the results of preliminary coal quality analysis from a borehole drilled at the Company's Debiensko Hard Coking Coal Project ("Debiensko" or the "Project") during 2015/2016 by the previous owners.
Prairie's preliminary review of the Debiensko deposit indicates that a range of premium hard coking coals can be produced from the Project that will be in high demand from European steelmakers. Two premium hard coking coal specifications have been delineated at Debiensko, namely Medium volatile matter hard coking coal ("Mid-vol HCC") and Low volatile matter hard coking coal ("Low-vol HCC").
The borehole was fully cored to 30 m below seam 407/4. All core was subject to detailed logging and core photography. Seam thicknesses and depths have been confirmed by a suite of geophysical logs while coal seams were analysed by accredited laboratories in Poland.
Prairie's CEO Mr. Ben Stoikovich said "The excellent coking coal quality results from Debiensko further reinforce Prairie's potential to become a key premium hard coking coal supplier to European steelmakers. These initial results confirm that the Debiensko deposit hosts premium coking coals of comparable quality to internationally traded benchmark hard coking coals, and will achieve premium pricing in the market. As we continue to rapidly advance our assessment of Debiensko, we look forward to announcing the Project's maiden JORC Resource Estimate and subsequent Scoping Study results in the coming weeks."
Debiensko Premium Hard Coking Coal Benchmarking
Both Debiensko's Mid-vol and Low-vol HCC lie within the range of premium hard coking coals produced globally. Indications are that the Mid-vol HCC at Debiensko is present between 850 m to 1,000 m from surface and the Low-vol HCC is present 1,000 m to 1,300 m below surface i.e. at depths similar to adjacent operating mines owned by Jastrz bska Spó ka W glowa S.A. ("JSW") - the largest coking coal producer in Europe.
Medium Volatile Matter Hard Coking Coal
The quality of Mid-vol HCC from Debienkso compares favourably with the Australian Goonyella hard coking coal brand, and with medium volatile coals produced in Poland today by JSW. This coal features good rheological properties and coke yield, with reasonably low sulphur levels. Prairie's assessment is that Mid-vol HCC from the Debiensko project would receive premium pricing in European and international markets.
Hot Features
Premium
Table 1: Debiensko Medium Volatile Matter Hard Coking
Coal Comparison to International Benchmarks
-------------------------------------------------------------------------------------------------------------------
Quality Debiensko* Goonyella Oaky Elkview Tuhup Pittston Borynia-JSW Pniowek-JSW
(Poland) (Australia) Creek (Canada) (Indonesia) (USA) (Poland) (Poland)
(Australia)
-------------- ---------- ------------ ------------ --------- ------------ -------- ----------- -----------
Ash (%) 3.2 8.9 9.5 9.5 7.0 8.0 8.5 8.5
-------------- ---------- ------------ ------------ --------- ------------ -------- ----------- -----------
Volatile
Matter
(%) 25.0 23.8 24.5 23.5 26.5 26.0 24.8 27.0
-------------- ---------- ------------ ------------ --------- ------------ -------- ----------- -----------
Sulphur
(%) 0.56 0.56 0.60 0.50 0.70 0.85 0.65 0.60
-------------- ---------- ------------ ------------ --------- ------------ -------- ----------- -----------
Phosphorous
(P) in
Coal (%) 0.025 0.025 0.070 0.07 0.02 0.019 0.059 0.050
-------------- ---------- ------------ ------------ --------- ------------ -------- ----------- -----------
Free Swelling
Index (FSI) 8 1/2 8 8 1/2 7 1/2 9 8 7 1/2 8 1/2
-------------- ---------- ------------ ------------ --------- ------------ -------- ----------- -----------
CSR (%) 63 66 67 70 60 - - -
-------------- ---------- ------------ ------------ --------- ------------ -------- ----------- -----------
Fluidity up to up to
(ddpm) 1200 1100 5000 150 450 - 2300 3000
-------------- ---------- ------------ ------------ --------- ------------ -------- ----------- -----------
C daf (%) 86 88.4 86.8 81.2 - 88.0 - -
-------------- ---------- ------------ ------------ --------- ------------ -------- ----------- -----------
Rv Max 1.23 1.17 1.10 1.22 1.18 1.10 1.20 1.10
-------------- ---------- ------------ ------------ --------- ------------ -------- ----------- -----------
Vitrinite
(%) 78 58 75 55 96 76 - -
-------------- ---------- ------------ ------------ --------- ------------ -------- ----------- -----------
* Indicative quality Debiensko Mid-vol HCC from washed sample from 401/1 seam at floats <1.40kg/m3
Low Volatile Matter Hard Coking Coal
Debiensko's Low-vol HCC is similar to other internationally traded low volatile matter hard coking coals, including brands such as Peak Downs (BHP Billiton Mitsubishi Alliance - BMA) and Hail Creek (Rio Tinto) produced in Australia. Whilst the Coke Strength after Reaction (CSR) is anticipated to be slightly lower than these Australian coals, the quality of Debiensko Low-vol HCC is anticipated to be in-line with coal produced at JSW's Jas-Mos mine in Poland, which is used as a stabilizing and leaning component of nearly every coal blend for production of blast furnace coke in the region.
Table 2: Debiensko Low Volatile Matter Hard Coking
Coal Comparison to International Benchmarks
-------------------------------------------------------------------------------------------------------------
Quality Debiensko* Peak German Hail Blue Buchanan Neryungri Jas-Mos
(Poland) Downs Creek Creek Creek (USA) (Russia) (Poland)
(Australia) (Australia) (Australia) - No.7
(USA)
-------------- ---------- ------------ ------------ ------------ ------- -------- --------- ---------
Ash (%) 9.5 10.0 9.5 8.9 9.0 5.3 10.0 7.8
-------------- ---------- ------------ ------------ ------------ ------- -------- --------- ---------
Volatile
Matter
(%) 20.5 20.5 19.0 20.5 19.9 18.7 19.3 21.4
-------------- ---------- ------------ ------------ ------------ ------- -------- --------- ---------
Sulphur
(%) 0.30 0.60 0.54 0.4 0.71 0.73 0.21 0.56
-------------- ---------- ------------ ------------ ------------ ------- -------- --------- ---------
Free Swelling
Index 7 1/2 8 1/2 8 1/2 7 8 1/2 8 1/2 8 7 1/2
-------------- ---------- ------------ ------------ ------------ ------- -------- --------- ---------
Fluidity
(ddpm) 128 275 400 300l 1113 100 18 200
-------------- ---------- ------------ ------------ ------------ ------- -------- --------- ---------
C daf
(%) 80 89.1 88.6 88.2 91 - 80.8 -
-------------- ---------- ------------ ------------ ------------ ------- -------- --------- ---------
Rv Max 1.5 1.40 1.45 1.26 1.48 1.63 1.50 1.40
-------------- ---------- ------------ ------------ ------------ ------- -------- --------- ---------
Vitrinite
(%) 59 68 73 54 70 76 81 -
-------------- ---------- ------------ ------------ ------------ ------- -------- --------- ---------
*Indicative quality Debiensko Low-vol HCC from unwashed sample from 404/9 seam
european hard coking coal market
European industry relies on imports for approximately 80% of its coking coal needs - the highest quality of which, hard coking coal, is the type of coal found at Debiensko.
In 2010 and 2014, the European Commission ("EC") carried out an assessment at the European Union ("EU") level to identify "Critical Raw Materials" based on:
-- Economic importance - the proportion of each material associated with industrial megasectors, such as construction, combined with its gross value added to EU GDP to define the overall economic importance of a material.
-- Supply risk - based on accountability, political stability, regulatory quality etc.
The EC concluded that coking coal is a critical raw material for Europe with its economic importance to the continent only surpassed by tungsten and vanadium.
In 2015 Europe consumed a total of 80 Mt of coking coal, of which 50 Mt was hard coking coal. Europe relies heavily on imports of coking coal primarily from the USA, Australia and Russia. Poland and the Czech Republic are the only European producers, however their domestic production is in rapid decline. In 2015, 64 Mt (i.e. 80%) of total European coking coal consumption was imported, including 40 Mt of hard coking coal and 10Mt of semi-soft coking coal.
Central Europe - which encompasses Poland, the Czech Republic, Slovakia, Hungary, Austria and Germany - accounts for approximately 50% of European coking coal consumption. In 2015, these countries consumed over 25 Mt of hard coking coal of which over 15 Mt was imported.
Regional Market
Debiensko's strategically competitive location means that about half of Central Europe's coking plants and steelmaking capacity is within 250 km of the Project and connected by existing road and rail infrastructure.
With a well-established rail network providing ease of transport to end users based in close proximity to Debiensko, Prairie will benefit from a significant pricing "netback" advantage over USA and Australian imported hard coking coal.
-- Poland - the main steel plants producing coke are Huta Czestochowa owned by ISD and situated in Czestochowa, producing 0.6 Mtpa coke and Tadeusza Sendzimira, situated in Cracow, with a capacity of 1.4 Mtpa coke. ArcelorMittal owns the Zdziesowice coke plant, the largest in Europe with a total coke capacity of 4.2 Mtpa. JSW owns the coking plants Debiensko, Radlin and Jadwiga and the Przyjazn merchant coke plant with a total capacity of some 4 Mtpa coke.
-- Czech Republic - the largest exporter of coking coal in the region is NWR's Czech subsidiary, OKD a.s. ("OKD"), which is now subject to insolvency proceedings and where coking coal production is estimated to cease by 2023.
-- Slovakia - hosts US Steel's Kosice works which has a coke capacity of 1.7 Mtpa i.e. coking coal requirement of 2.4 Mtpa.
-- Hungary - hosts one integrated steelmaker, Dunaferr, situated at Dunaujvavos which requires 1.4 Mtpa coking coal to meet its coke output capacity of 1.0 Mtpa. The plant is currently supplied by Poland, the Czech Republic and Russia.
-- Austria - has one major integrated steelmaker, Voestalpine, which operates one coke oven plant located at Linz and has an annual output capacity of 2.1 Mtpa coke implying a coking coal consumption rate of production is 3 Mtpa. The plant secures rail-delivered supply from Poland, the Czech Republic and Russia.
-- Germany - is the largest market for coking coal in Europe with current consumption of coking coal amounting to 15 Mtpa.
For further information, contact:
Ben Stoikovich Chief Executive Officer +44 207 478 3900 Artur Kluczny Group Executive - Poland +48 22 351 73 80 Sapan Ghai Corporate Development +44 207 478 3900 info@pdz.com.au
ABOUT THE DEBIENSKO HARD COKING COAL PROJECT
Debiensko is a world class, fully permitted, hard coking coal project located in the Upper Silesian region of Poland in the heartland of the European steelmaking industry. More than 80% of coking coal usage of the European steel making industry is currently imported and the commodity is classified by the European Commission as a "Critical Raw Material".
A large scale Coal Exploration Target has been estimated based on historical drilling and resource work completed to Polish standards, as well as data from adjacent operating mines.
Table 3: Exploration Target Range ---------------------------------------------------------------------------------------------------------------------- Depth* Exploration Target Tonnage Range (Mt) ---------------------------------------------------------------------------- ---------------------------------------- All seams to depth approx. 1,100 m 120 Mt - 150 Mt ---------------------------------------------------------------------------- ---------------------------------------- Depth 1,100 - 1,250 m 90 Mt - 110 Mt ---------------------------------------------------------------------------- ---------------------------------------- Total 210 Mt - 260 Mt** ---------------------------------------------------------------------------- ---------------------------------------- Quality*** Moisture Ash Volatile Matter Sulphur FSI ----------------------------- ------------ ------------ ----------------- --------------------- ----------------- Weighted Average Whole Exploration Target Range (+/-20%) 0.7 - 1.1% 6.3 - 9.5% 18.1 - 27.1% 0.6 - 0.8% 5 1/2 - 8 ----------------------------- ------------ ------------ ----------------- --------------------- ----------------- *Depths are from surface - c250 m above datum **Figures are reported to the nearest 10 Mt which is deemed appropriate for this level of estimation ***Figures are reported to one decimal place which is deemed appropriate for this level of estimation The potential quantity and grade of the exploration targets are conceptual in nature and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. ----------------------------------------------------------------------------------------------------------------------
Debiensko is fully permitted with a 50-year mining concession, established on-site facilities including rail, road and power infrastructure, comprehensive historical drilling data and all environmental consents. As a brownfield development project with significant historical capital investment Debiensko is positioned to become a meaningful, regional hard coking coal producer in the near-term.
Revised Development Approach
Following detailed technical due diligence conducted by Prairie, the Company is confident that a revised development approach would allow for the early mining of profitable coal seams, whilst minimising upfront capital costs.
This is likely to include focusing on a limited area of Debiensko to target coal seams that are the most readily accessible. Prairie has proven expertise in defining commercially robust projects and applying international standards in Poland.
Prairie has reported an Exploration Target for this target area in accordance with the JORC Code (2012).
Infrastructure
As part of the transaction, Prairie has acquired approximately 15Ha of land and all related facilities critical to the development of the Project. Significant historical capital investment positions Debiensko to become a meaningful regional hard coking coal producer in the near term.
With existing site facilities and necessary infrastructure including power, water, rail and road in addition to the mining concession, environmental consent and local planning all being in place, the Project is considered "development-ready".
The Debiensko mine was previously connected to the main Polish rail network and a currently inactive railway siding is still in place and in sound condition. Poland is served by 23,420 kilometres (14,550 mi) of railway tracks using standard international gauge, and provides rail connections to major regional end users of coking coal and for export. Further, asphalt roads surround and connect the Debiensko mine site to the major road network.
Appendix - Coal Quality & Exploration Target Additional Information
Sources of Information
Seam thicknesses and depths are derived from the historical borehole cards (strip logs), overlying and adjacent mine workings and the New World Resources Karbonia ("NWRK") database. Information on seam quality is taken from the official Polish Government approved "Geological Documentation", which was approved by the State in 2009. There are 9 deep boreholes within the concession. In addition data from 15 boreholes and mine workings in the surrounding area have been used in the model. Co-ordinates are in Poland 2000, zone 6 system.
Site Visits
The site was visited by the Competent Person and other members of the Prairie Team on 6 September 2016.
Topography, Elevation, Vegetation and Climate
The Upper Silesian Coal Basin is located in the south-western part of Poland and towards the border with the Czech Republic. The concessions are located in a relatively flat-lying area at elevations of between 230 - 320 mASL (metres above sea level). The Bierawka River flows northwards through the area eventually joining the Odra River.
The dominant land use comprises of arable land and partly forested areas with mature and immature trees making up some 80% of the area. The remaining area is largely rural housing with small villages and industrial/post-industrial (mining) development.
The climate in Poland is influenced by both European maritime and Eastern Europe continental air masses. The region in the south west of Poland can be categorised as having a cool continental climate. The warmest months are from May to September, with temperatures ranging 10(0) C to 25(0) C. The coldest months are usually from November to March with temperatures in the range 7(0) C to -7(0) C.
History of Exploration
The Upper Silesian Coal Basin has a long history of exploration and exploitation with work starting in the 18(th) Century culminating with the drilling of nine deep boreholes between 1982 and 1989. Within the Debiensko Licence area the upper coals in the Upper 300 Series have been extensively worked providing good structural control.
Historical Tonnage Estimates
The area was assessed in the Geological Documentation carried out in 2009 under the official Polish system for seams 401 to 410 to a depth of 1,400 m. More recently in 2014 and 2015, the previous owner also delineated resource and reserve estimates for the Debiensko deposit based on the historical Polish Government approved Geological Documentation. However, Prairie has opted to estimate tonnages for a smaller area of the Debiensko Project that has the potential to be more readily accessible for early mining.
Geological Setting and Coal Seams
The Debiensko Licence area is situated in The Upper Silesian Coal Basin which contains a thick, up to 8,500 m, sequence of Upper Carboniferous sediments. These have been subject to folding and faulting during the Variscan Orogeny. The upper surface of the Carboniferous sediments now forms an angular unconformity overlain by strata with ages varying from Permian to Quaternary. Igneous intrusions occur in some parts of the Basin but are not known in the area of Debiensko.
The sediments of the 400 Series are mudstone/claystone/siltstone dominated with occasional fine to medium grained sandstones from a few to several 10s of metres in thickness. Seam roofs and floors are generally mudstone/claystone. There are over 30 seams within the series varying from a few centimetres to several metres in thickness. This Estimation has focussed on 16 of the thicker and more laterally consistent seams.
Structural Geology
The structure of the Coal Measures within the Debiensko licence is generally well known from overworking, the seams dip south east at 2 to 15 degrees.
Assessment of Coal Seams
Geological modelling
GEOVIA MINEX(TM) modelling software was used to undertake modelling as it is particularly adept at modelling stratiform deposits such as coal. The model was based on the NWRK database which contains all necessary borehole data (collar location, seam depth and thickness, coal quality data). Prairie has conducted spot checks on the data base to ensure data veracity. 3D modelling procedure was conducted in following stages: 1. Raw data loading and validation; 2.Interpolation of borehole data; 3. Seam structure and coal quality modelling; 4. Fault modelling (3D faulting with various throws); 5. Final model validation; 6. Target estimation. For basic modelling fault location and throw was adopted from latest deposit documentation. The basic Minex model provides information relating to coal extent, quality and quantity and allows a Resource to be reliably estimated.
Constraints/Cut Offs
For the estimation of the Exploration Target the following constraints have been used -
-- a minimum clean coal seam thickness of 1 m -- depth cut off at c 1,250 m -- exclusion pillar under Czerwlonka-Leszczyny -- coal to the south of the Belski Fault (200 m downthrow south) has been excluded -- Seams designated Polish Type 36 (meta coking coal) have been excluded
Future Exploration
Prairie Mining has programmed to drill up to five additional boreholes (including a shaft centreline borehole) to improve confidence in seam continuity and confirm quality. Prairie Mining will also conduct a full review and verification of the data and seam correlations.
Borehole Co-ordinates
X=5558104, Y 6547885, Z = +249.5 m
Forward Looking Statements
This release may include forward-looking statements. These forward-looking statements are based on Prairie's expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Prairie, which could cause actual results to differ materially from such statements. Prairie makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.
Competent Person Statements
The information in this announcement that relates to Exploration Results and Exploration Targets is based on, and fairly represents information compiled or reviewed by Mr Jonathan O'Dell, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr O'Dell is a full time consultant of the Company. Mr O'Dell has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr O'Dell consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
To view the announcement in full, including all figures and diagrams please refer to Company's website at www.pdz.com.au
JORC Code, 2012 Edition - Table 1 report template
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling
techniques * Nature and quality of sampling (eg cut channels, * There are 25 boreholes within the licence and
random chips, or specific specialised industry surrounding area. Twenty of these were drilled in the
standard measurement tools appropriate to the period from 1954 to 1988 with the remaining four
minerals under investigation, such as down hole gamma dating from a much earlier period. Of these 18
sondes, or handheld XRF instruments, etc). These boreholes penetrate all, or part of the 400 Series
examples should not be taken as limiting the broad Coals subject to this assessment. A shaft
meaning of sampling. geotechnical borehole, Debiensko 12 (D 12) was
drilled in 2015/2016 and fully cored to 1,303 m depth,
approximately 29 m below seam 407/4.
* Include reference to measures taken to ensure sample
representivity and the appropriate calibration of any
measurement tools or systems used. * Seam thicknesses have been verified from geophysical
logs (Gamma, Density) with the exception of Boreholes
Szyb Jan III and Szczyglowice III. Data from these
* Aspects of the determination of mineralisation that boreholes has not been used in the estimation.
are Material to the Public Report.
* Coal cores were taken from continuous cores in the
Carboniferous sections of the boreholes.
* Assessment of coal quality and type is based on the
results of laboratory tests of the coal samples taken
from the borehole cores.
* All seams equal to, or thicker than 0.40 m were
analysed.
* Dirt (rock) partings in-seam less than 0.05 m were
included in the coal sample and analysed with the
coal.
* Dirt partings equal to, or thicker than 0.05 m were
not analysed.
* Average core yield in the historical set used for
estimation was variable but deemed fit for purpose in
the context of the adjacent workings and efforts have
been made to remove anomalous data based on low
recoveries.
* All chemical analyses of coal samples were performed
by the Analytical Tests Department of Katowice
Geological Enterprise.
* Coal cores from Debiensko 12 were tested at The
Glowny Instytut Gornictwa (GIG) and at The Centralne
Laboratorium Pomiarowo Badawcze (CLPB) during 2016.
Drilling
techniques * Drill type (eg core, reverse circulation, open-hole * The boreholes comprised a combination of open hole
hammer, rotary air blast, auger, Bangka, sonic, etc) and rotary core drilling with continuous coring in
and details (eg core diameter, triple or standard the in the coal measure strata. The drilling was
tube, depth of diamond tails, face-sampling bit or carried out by companies from Katowice and Kielce
other type, whether core is oriented and if so, by using OP-1200 and ZIF-1200 drilling rigs.
what method, etc).
* Core diameters were mostly 85 mm(PQ) or larger and
rarely down to 47.4 mm.
* Borehole D 12 was drilled PQ using a double wall core
barrel.
Drill
sample * Method of recording and assessing core and chip * During the drilling of the boreholes coal samples
recovery sample recoveries and results assessed. were collected from the drill core using methods that
were standard for the coal industry in Poland.
* Measures taken to maximise sample recovery and ensure
representative nature of the samples. * Core recovery was determined for the coal samples by
measuring the lengths of recovered core and weighing
broken/fragmentary core and calculating length to
* Whether a relationship exists between sample recovery provide an overall recovery length and percentage as
and grade and whether sample bias may have occurred compared to the drilling depths. Final checks are
due to preferential loss/gain of fine/coarse provided by comparison with thicknesses determined
material. from the suite of geophysical logs.
* Core recoveries were recorded for each core run and
for individual seams.
* There is no known relationship between recovery and
quality.
Logging
* Whether core and chip samples have been geologically * The cores have been logged and analysed in sufficient
and geotechnically logged to a level of detail to detail to support the Resource Assessment. Cores were
support appropriate Mineral Resource estimation, analysed by laboratories certified to Polish National
mining studies and metallurgical studies. Standards and the results are considered fit for
purpose.
* Whether logging is qualitative or quantitative in
nature. Core (or costean, channel, etc) photography. * Detailed borehole records are presented in the
"Borehole Documentation" which contains the written
description, graphic log (borehole card) and details
* The total length and percentage of the relevant of analyses and interpretations, including the final
intersections logged. accepted seam thicknesses.
* For borehole D12 additional data of photographs of
all core and 3 D scans of intact core are available.
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * Due to the historic nature of the drilling sampling
and sample half or all core taken. techniques are not known in detail. However, the
preparation available documentation indicates that these will
have followed industry standards which are generally
* If non-core, whether riffled, tube sampled, rotary considered to be fit for purpose. Cores were not
split, etc and whether sampled wet or dry. split but sampled as whole core. As noted above,
in-seam partings thicker than 0.05 m were not sampled
and analysed.
* For all sample types, the nature, quality and
appropriateness of the sample preparation technique.
* Detailed core recovery measurements were made
allowing assessment of the representative nature of
* Quality control procedures adopted for all the core analysed. Quality control procedures
sub-sampling stages to maximise representivity of relating to other aspects of the analysis are unknown
samples. due to the historic nature of the data.
* Measures taken to ensure that the sampling is * Borehole D12 coal cores were cleaned, measured,
representative of the in situ material collected, described and photographed before being sealed in
including for instance results for field plastic and sent to the laboratories for analysis.
duplicate/second-half sampling.
* Whether sample sizes are appropriate to the grain
size of the material being sampled.
Quality
of assay * The nature, quality and appropriateness of the * Laboratory procedures were to the standard industry
data and assaying and laboratory procedures used and whether practices of the time. These are generally considered
laboratory the technique is considered partial or total. to be rigorous and uniform.
tests
* For geophysical tools, spectrometers, handheld XRF * Geophysical logs used in the boreholes include
instruments, etc, the parameters used in determining natural gamma, neutron gamma, density (gamma gamma),
the analysis including instrument make and model, resistivity and caliper logs. These are of sufficient
reading times, calibrations factors applied and their quality to be used for quantitative (i.e. seam
derivation, etc. thickness) determinations.
* Nature of quality control procedures adopted (eg * Boreholes Szyb Jan III and Szczyglowice III have no
standards, blanks, duplicates, external laboratory geophysical logs and the results have been excluded
checks) and whether acceptable levels of accuracy (ie from the database used for modeling.
lack of bias) and precision have been established.
* Due to the historical nature of the drilling and
sampling, no information is available on whether
QA/QC procedures were employed during sampling and
testing.
Verification
of sampling * The verification of significant intersections by * Geological supervision over all historic drilling
and assaying either independent or alternative company personnel. works was performed by employees of the Geological
Survey Company from Kielce.
* The use of twinned holes.
* The Geological Survey Company also performed detailed
core logging and sampling for macro-flora and
* Documentation of primary data, data entry procedures, macro-fauna examination.
data verification, data storage (physical and
electronic) protocols.
* Twinned boreholes were not used.
* Discuss any adjustment to assay data.
* Primary data is held as hard copy (laboratory
certificates etc.) and this has been transferred to
electronic spreadsheets by NWRK's Polish consultants
KPG and subsequently verified by Prairie Mining.
* No adjustments have been made to assay data.
* Borehole D 12 drilling was carried out by PPI Chrobok
S. A. and geological supervision and logging by Graft
Sp. z.o.o.
Location
of data * Accuracy and quality of surveys used to locate drill * Original data was believed to have been on mixture of
points holes (collar and down-hole surveys), trenches, mine local grid data and Poland CS92 grid system however
workings and other locations used in Mineral Resource collar positions have been converted to Poland
estimation. CS2000, zone 6 grid system.
* Specification of the grid system used. * Detailed topographic maps are available.
* Quality and adequacy of topographic control.
Data spacing
and * Data spacing for reporting of Exploration Results. * The spacing of boreholes is shown on the attached
distribution drawings (eg, in the order of 1.2 to 2.7 km), which
is considered sufficient to support the Resource
* Whether the data spacing and distribution is Assessment due to the structural control and seam
sufficient to establish the degree of geological and continuity demonstrated by overworking and current
grade continuity appropriate for the Mineral Resource workings in adjacent collieries.
and Ore Reserve estimation procedure(s) and
classifications applied.
* Almost complete structural information is available
for Zone A, projected from workings in multiple seams
* Whether sample compositing has been applied. of the 300 Series coals above.
* In seams where analysis was made for more than one
ply the samples have been composited using weighted
averages.
* In cases were seams contain dirt partings that have
not been analysed, dummy values for that parting have
been used in the current estimation to compile a
weighted average quality for that seam. No other
adjustments have been made to the data
Orientation
of data * Whether the orientation of sampling achieves unbiased * The boreholes are nominally vertical and the coal
in relation sampling of possible structures and the extent to seams have low to moderate dip and relatively simple
to which this is known, considering the deposit type. structure and so there is no structural or
geological orientation bias to the sampling.
structure
* If the relationship between the drilling orientation
and the orientation of key mineralised structures is
considered to have introduced a sampling bias, this
should be assessed and reported if material.
Sample
security * The measures taken to ensure sample security. * No sample security information exists in the
documentation available to review sample security
measures which may have taken place during drilling.
However, sampling protocols existing at the time are
considered to be rigorous and fit for purpose.
Audits
or reviews * The results of any audits or reviews of sampling * Historical sampling and data handling techniques were
techniques and data. prescriptive and are considered fit for purpose.
============= ============================================================ =============================================================
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral
tenement * Type, reference name/number, location and ownership * Prairie Mining entered into transaction in October
and land including agreements or material issues with third 2016 and is now the beneficial owner of 100% of the
tenure parties such as joint ventures, partnerships, shares of NWR Karbonia SA ("NWRK"). NWRK was
status overriding royalties, native title interests, incorporated on 28 February 2011 in the form of Joint
historical sites, wilderness or national park and Stock Company (spó ka akcyjna), as a legal
environmental settings. successor of NWR Karbonia Sp. z o.o. and earlier
Karbonia PL Sp. z .o. NWRK's Mining License was
issued on 24 June 2008 by the vice Minister of
* The security of the tenure held at the time of Environment for a period of 50 years and enables
reporting along with any known impediments to conducting mining operations in seams 401/1 to 410.
obtaining a licence to operate in the area. With regard to the mining, D bieńsko falls
within the control of the Regional Mining Authority
in Rybnik. The approved co-ordinates for the area are
given in the main body of the report
Exploration
done by * Acknowledgment and appraisal of exploration by other * With the exception of the shaft borehole D 12,
other parties. drilled by NWRK in.2015 the exploration is historical
parties in nature and is described in Section 1 above.
Geology
* Deposit type, geological setting and style of * The deposit is a Carboniferous hard coal consisting
mineralisation. of coal seams separated by units of mudstone and
sandstone.
Drill
hole * A summary of all information material to the * Borehole details are tabulated in the main body of
Information understanding of the exploration results including a the report.
tabulation of the following information for all
Material drill holes:
* Additional data includes paper copies of workings
from adjacent mines, Szczyglowice and Knurow for
o easting and northing of the drill Seams 401/1, 404/9 and 405.
hole collar
o elevation or RL (Reduced Level
- elevation above sea level in metres) * Basic coal analyses for workings in Seam 401/1 at
of the drill hole collar Debiensko
o dip and azimuth of the hole
o down hole length and interception
depth * Detailed mine plans for the overworkings in the 300
o hole length. Series coals (digitised)
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
Data
aggregation * In reporting Exploration Results, weighting averaging * Coal seams have normally been sampled as one
methods techniques, maximum and/or minimum grade truncations continuous sample. Where the seam has been sampled as
(eg cutting of high grades) and cut-off grades are two or more plies the sample results have been
usually Material and should be stated. combined as simple weighted averages. Dirt partings
of 5 cm in thickness or less have been sampled with
the coal. Partings thicker than 5 cm were not
* Where aggregate intercepts incorporate short lengths analysed
of high grade results and longer lengths of low grade
results, the procedure used for such aggregation
should be stated and some typical examples of such * No cut off qualities have been used in this
aggregations should be shown in detail. assessment.
* The assumptions used for any reporting of metal
equivalent values should be clearly stated.
Relationship
between * These relationships are particularly important in the * The boreholes are nominally vertical and the coal
mineralisation reporting of Exploration Results. seams form part of a stratiform deposit dipping at 2
widths - 15 degrees.
and intercept
lengths * If the geometry of the mineralisation with respect to
the drill hole angle is known, its nature should be * Intercept lengths used in the model are drill
reported. intercept lengths which have been modelled in 3D
removing the need to calculate the true thickness.
(Note that thicknesses shown on the Polish
* If it is not known and only the down hole lengths are documentation have been corrected for dip)
reported, there should be a clear statement to this
effect (eg 'down hole length, true width not known').
Diagrams * Included in main body of report
* Appropriate maps and sections (with scales) and
tabulations of intercepts should be included for any
significant discovery being reported These should
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional
views.
Balanced * Not applicable.
reporting * Where comprehensive reporting of all Exploration
Results is not practicable, representative reporting
of both low and high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
Other * Not applicable.
substantive * Other exploration data, if meaningful and material,
exploration should be reported including (but not limited to):
data geological observations; geophysical survey results;
geochemical survey results; bulk samples - size and
method of treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
Further
work * The nature and scale of planned further work (eg * Prairie Mining intends to perform additional drilling
tests for lateral extensions or depth extensions or to decrease the separation of points of observation
large-scale step-out drilling). and upgrade areas of the deposit to Measured status
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
=============== =============================================================== =============================================================
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The company news service from the London Stock Exchange
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