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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 : 8457D
Prairie Mining Limited
02 May 2017
PRAIRIE MINING LIMITED
NEWS RELEASE | 2 May 2017
COKING COAL QUALITY RESULTS ESTABLISH JAN KARSKI AS A HIGH VALUE ULTRA-LOW ASH COKING COAL MINE
HIGHLIGHTS
-- Recent coal quality testwork establishes the potential to produce high value ultra-low ash semi-soft coking coal ("SSCC") at Jan Karski
-- Independent analyis by coal market consultants predicts that Jan Karski ultra-low ash SSCC would potentially realise a 10% premium to international benchmark SSCC prices
-- Washability results demonstrate the ability to produce ultra-low ash (<3%) semi soft coking coals that are in high demand from global stealmakers due to the considerable commercial advantages of enhanced "value in use" and lower CO(2) emissions
-- Coke oven tests demonstrated exceptional results with Coke Strength after Reaction ("CSR") of 51.5, exceeding typical CSR parameters of internationally traded semi soft coking coals
-- Preliminary washplant flow sheet redesign anticipates a significantly upgraded product split of 75% ultra-low ash semi-soft coking coal, and is not expected to result in a reduction of overall saleable coal product yields, or material project cost increases
-- Preliminary discussions with select European steel makers have confirmed the suitability of ultra low ash, high CSR semi-soft coking coals to be utilised in coke oven blends
-- Benchmarking of the Jan Karski ultra-low ash SSCC against semi-soft coking coal currently produced by OKD in the Czech Republic demonstrates the potential of the Jan Karski product to replace these coals in the regional market
Prairie Mining Limited ("Prairie" or "Company") is pleased to announce the results of enhanced coal quality analysis and test work from a recently completed borehole (Cycow 9) at the Jan Karski Mine ("Jan Karski"). Key results from the expanded coke oven and washability test work indicate the potential to produce a high value ultra-low ash SSCC with a high CSR, with a high 75% product yield. Preliminary analysis by independent consultants indicates that the Jan Karski Ultra-low ash SSCC could achieve a 10% premium to international SSCC benchmark prices, due to several superior qualities.
Prairie's CEO Ben Stoikovich commented: "The expanded washability and coking analysis from the recently drilled Cycow 9 borehole has confirmed that a high value Ultra-Low ash SCCC can be produced from Jan Karski, at a product yield of 75%. This transforms Jan Karski into a predominantly coking coal project with superior semi-soft coking qualities that have potential to achieve market pricing of some 10% above the standard international SSCC benchmarks. With the expected closure of coal mines in the Czech Republic that produce SSCC by 2022, there is a growing regional market opportunity for Jan Karski ultra-low ash SSCC coals."
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
RESULTS FROM RECENT DRILLING AND EXPANDED COAL QUALITY ANALYSIS
Prairie completed drilling the Cycow 9 borehole at Jan Karski in February 2017. Cycow 9 was a large diameter, PQ size borehole and the first of its kind to be drilled at Jan Karski enabling sufficient quantities and sized coal from the 391 seam to be collected to meet the requirements for physical coke testing, specifically confirmation of CSR and extended coal washability test work. The analysis and testwork was conducted at leading fully accredited European laboratories in Poland, Germany and the UK. The CSR test is considered vital in testing for a coal's coking properties important to steelmakers as it is an indicator of the performance / strength of the coke produced from the coal. The full range of standard coking tests were also conducted as shown in table 1 below:
Hot Features
Premium
Table 1: Analysis results from Cycow 9 borehole - 391 seam
----------------------------------------------------------------------------------------------------------------------
TOTAL MOISTURE ar% 10-12% ULTIMATE ANALYSIS COKING PROPERTIES
Carbon daf% 81.90 FSI 5.5
--------------------------- -------
PROXIMATE ANALYSIS Hydrogen daf% 5.42 Gray King Coke G5
Inherent moisture adb% 3.4 Nitrogen daf% 1.91 Roga Index 69
Ash ar% 2.6 Sulphur ad% 1.16 CSR % 51.5
Volatile Matter ar% 33-36 Oxygen daf% 7.10 CRI % 39.1
Fixed Carbon ad% 57 Ash in Coke % 3.3
-------------------------- ----- ------
RO(MAX) & MACERAL
ANALYSIS Sulphur in Coke % 0.87
--------------------------- -------
ASH CHEMISTRY Vitrinite % 74.40
SiO(2) db% 33.32 Liptinite % 13.20 Giesler Plastometer
Al(2) O(3) db% 29.63 Inertinite % 12.40 Initial Softening degC 379
Fe(2) O(3) db% 20.30 Mineral Matter % 0.00 Max Fluidity temp degC 416
CaO db% 4.49 RoMax % 0.88 Resolidification degC 435
MgO db% 1.73 Max Fluidity ddpm 90
-------------------------- ----- ------
TiO(2) db% 0.98 OTHER COAL PROPERTIES
NaO(2) db% 0.96 Sulphur ar% 1.09 ASTM Dilation
K(2) O db% 1.10 HGI average ad% 44 Softening Temperature degC 370
P(2) O(5) db% 3.41 Phosphorus ad% 0.034 Max Contraction Temp degC 408
SO(3) db% 2.36 Max Dilation Temp degC 433
Other db% 1.72 Max Contraction % C 32
Max Dilation % D 35
--------------------------- ------- -------------------------- ----- ------ ---------------------- ----- -----
JAN KARSKI COKING COAL KEY QUALITY ADVANTAGES
Ultra-low Ash
Washability analysis from the Cycow 9 borehole and previous boreholes drilled by Prairie across Jan Karski has demonstrated that due to the low inherent ash and excellent washability characteristics of the 391 seam, Jan Karski SSCC coal is unique with typical ash product level of less than 3% (air dried) and far superior to typical ash levels for major coking coal brands (both hard and soft) traded internationally and produced domestically in Europe. With an average ash specification of 2.6%, the Jan Karski SSCC is an ultra-low ash product compared to all the comparison coals. Low ash provides a number of technical benefits including improved coke strength and caking properties, and reduced fuel rate in the blast furnace.
The ultra-low ash content increases the coals value-in-use to steel and coke makers, making the product highly saleable in both the domestic European and international markets. One of the key outcomes of utilising ultra-low ash coking coal to produce low ash coke ash is the resulting decreased fuel rate. This has a key environmental benefit for steel makers that results in a reduction in CO(2) emissions per tonne of hot metal produced.
Prairie's analysis predicts increasing global demand for ultra-low ash coking coal for blending with hard coking coal ("HCC"), because of a continuing trend of rising average ash levels in globally traded hard coking coals. Premium hard coking coal resources with low ash are becoming increasingly scarce, forcing consumers to make concessions on HCC ash levels. Ultra-low ash coking coals for blending are becoming increasingly sought after by consumers seeking to "blend-down" the ash levels in their coke blends. This is a particular advantage for European steelmakers where EU regulations focus on reduced CO(2) emissions. This trend has important implications for the future marketability of Jan Karski ultra-low ash SSCC.
Coke Strength After Reaction
The measured CSR (51.5) of the 391 seam from Cycow 9 borehole at Jan Karski is at the top end of the range for semi-soft coking coal. A CSR figure of 51.5 shows the coal has the ability to form a coherent coke mass. The Jan Karski coal has a number of features conducive to forming good coke for a semi-soft type coal:
1. the coal is ultra-low ash and low inertinite, meaning the coke has few inertinites to bind;
2. the coal has higher rank for a semi-soft compared to typical Hunter Valley and Maules Creek semi-soft coking coals; and
3. the coal exhibits moderate fluidity and reasonable total dilatation.
Further CSR analysis will be undertaken as part of future drilling programs.
Other Positive Attributes
Other Jan Karski ultra-low ash SSCC quality positives are its high vitrinite content, and low phosphorous levels, mid-range FSI (5.5), Gray King Index (G5). The volatile matter is in the range typical for Australian traded SSCCs, with the rank of the Jan Karski coal being slightly higher and closer to a semi-hard coking coal specification.
PRICE BENCHMARKING
Independent coal market specialists CRL Energy Ltd ("CRL") were appointed by Prairie to analyse the potential value of Jan Karski ultra-low ash SSCC in the market. CRL took two approaches to price benchmarking. The first approach applied the method used by the Platts publication of international benchmark coal prices. The second was a proprietary approach adopted by CRL based on value in use assessment incorporating assumptions regarding a typical Western European coking coal blend used by steel makers and proportions of Jan Karski ultra-low ash SSCC included in the blend.
The Platts coal market publication shows a number of penalty/premium factors that can be used to calculate relative value of coking coals against a stated benchmark. The limit of this method is that it assumes all markets would derive the same value from a particular coal; this is not strictly applicable in all cases, since value is also a function of the other coals in the blend, coke versus PCI rate and plant configuration. The "benchmark" coal used in this evaluation is the Rio Tinto Hunter Valley semi-soft, hence this coal is calibrated at 100% of the benchmark. The Platts benchmarking shows the Jan Karski coal specification is valued at 112.7% of the Rio Tinto semi-soft specification. The only comparable coal is the Blackwater coking coal (which is more of a semi-hard type specification) and the NZ SSCC (a low ash semi-soft coking coal).
Both Platts benchmarking and value in use modelling show Jan Karski is a high value semi-soft, driven substantially by the ultra-low ash. The Platts specification benchmarking suggests Jan Karski should be priced at a 10% premium above the benchmark Rio Tinto Hunter Valley semi-soft coal.
WASHPLANT DESIGN UPDATE AND COKING COAL YIELD
Dargo Associates, specialist coal handling and preparation consultants were appointed to re-evaluate the potential yields of ultra-low ash coking coal from the Jan Karski mine, and develop a conceptual washplant flow sheet. To evaluate the yield of ultra-low ash coal, the washability tests were extended to give more information on separation in the lower density ranges. Separating at low density increases the quantities of near density material and the extended washability test work was used to identify the most efficient wash plant process. The washability results of from the recently drilled Cycow 9 borehole were consistent with the results from washability analysis conducted for all of the eight boreholes Prairie has drilled across Jan Karski, demonstrating exceptionally high yields of ultra-low ash (<3%) product coal at RD1.35 float.
Because the Prairie coal will be washed at a lower density to achieve the ultra-low ash product, higher ash coal will report to the residual thermal coal which is washed at a higher density, and typically sold into the steam coal market.
Preliminary analysis has shown that the production of ultra-low ash SSCC (<3%) results in an overall yield of saleable coal of 82%, which is similar overall yield as indicated in the original Jan Karski Pre-Feasibility Study ("PFS") published in March 2016. Overall mine yields are hardly impacted by the ultra-low ash beneficiation as any coal lost due to the lowering of ash on the ultra-low ash SSCC product reports to the thermal product.
The predicted ratio of ultra-low ash SSCC to thermal coal is 75% coking coal to 25% thermal coal. The thermal coal product is anticipated to have 13% ash, and will be in line with typical API2 specification export quality thermal coal. Should Prairie decide to sell a typically higher ash Polish domestic thermal coal of up to 25% ash, the overall yield will increase further.
COMPARISON TO SEMI SOFT COKING COALS PRODUCED IN THE CZECH REPUBLIC
Semi soft coking coal is produced in the Czech Republic by mining company OKD, formerly New World Resources. The two mines at OKD that produce semi-soft coking coal are Karvina CSA and Darkov mines. According to Prairie's estimates these two mines combined currently produce approximately 1.8mtpa of semi-soft coking coal. In recent press reports indications are that these mines will cease production by 2022.
Jan Karski Ultra-low ash SSCC coal quality parameters compare favourably with the coals produced at Karvina CSA and Darkov mines, with a summary comparison of coal qualities indicated in table 2. These types of coals find wide acceptance in European coke ovens and particularly in stamp charging coke batteries that are widely used in Poland and Central Europe.
Table 2: Jan Karski Ultra-low Ash SSCC compared to
OKD Czech mines
-------------------------------------------------------------------------------
Parameter Jan Karski Ultra-low Darkov Karvina CSA
ash SSCC
-------------------- --------------------------------- -------- ------------
Rank (Ro) 0.88 1.15 1.00
-------------------- --------------------------------- -------- ------------
VM % 33-36 27 28
-------------------- --------------------------------- -------- ------------
Ash % 2.6 8.0 8.0
-------------------- --------------------------------- -------- ------------
FSI 5.5 4.5 5
-------------------- --------------------------------- -------- ------------
Vitrinite
% 74 43 42
-------------------- --------------------------------- -------- ------------
Dilatation 35 25 25
-------------------- --------------------------------- -------- ------------
Fluidity 90 300 500
-------------------- --------------------------------- -------- ------------
Phos % 0.035 0.01 0.25
-------------------- --------------------------------- -------- ------------
CSR 51.5 45-48 45-50
-------------------- --------------------------------- -------- ------------
Coal Type HV SSCC MV SSCC MV SSCC
-------------------- --------------------------------- -------- ------------
FORWARD WORK PROGRAM
Prairie is planning additional drilling program at Jan Karski to conduct more detailed coking coal analysis and develop a comprehensive marketing strategy around the Jan Karksi high value low ash SSCC. The works program will aim at:
-- Performing a more detailed evaluation of the coke products;
-- Further developing a technical marketing strategy by ongoing identification and evaluation of potential customers; and
-- Performing a comprehensive blending evaluation of the resource for specific customers.
BACKGROUND ON JAN KARSKI
In March 2016, Prairie announced the results of a PFS for the Jan Karski Mine confirming the technical viability and robust economics of the Project and highlighting its potential to become one of the lowest cost, large scale strategic coal suppliers to be developed in Europe.
The Study utilised an updated Coal Resource Estimate ("CRE") for the Project which comprises a Global CRE of 728Mt including an Indicated Resource of 181Mt from two coal seams, the 391 and 389 seams. The PFS incorporated a mine plan based on an initial Marketable Ore Reserve Estimate generated from the indicated resources within the 391 and 389 seams.
Table 3: Jan Karski Mine Resource JORC Coal Resource and Reserve Estimate - 389 & 391 Seams
----------------------------------------------------------------------------------------------
Coal Seam Indicated Coal Resource
In-Situ (Mt)
---------------------------------------------------------- ----------------------------------
389 17
========================================================== ==================================
391 164
---------------------------------------------------------- ----------------------------------
Total 181
---------------------------------------------------------- ----------------------------------
Probable Recoverable Coal Reserves (Mt) 170
========================================================== ==================================
Probable Marketable Coal Product (Mt) 139
---------------------------------------------------------- ----------------------------------
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 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 part 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.
The information in this announcement that relates to the Coal Resources and Coal Reserves was extracted from Prairie's announcement dated 8 March 2016 entitled "Pre-feasibility Study Confirms LCP As One of The Lowest Cost Global Coal Suppliers Into Europe" which is available to view on the Company's website at www.pdz.com.au.
The information in the original announcement that relates to Exploration Results and Coal Resources is based on, and fairly represents, information compiled or reviewed by, Mr Samuel Moorhouse, a Competent Person who is a Chartered Geologist and is employed by independent consultants Royal HaskoningDHV UK Limited. Mr Moorhouse has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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'.
Prairie confirms that: a) it is not aware of any new information or data that materially affects the information included in the original announcements; b) all material assumptions and technical parameters underpinning the Coal Resource and Coal Reserve included in the original announcements continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons' findings are presented in this presentation have not been materially modified from the original announcements.
To view the announcement in full including all figures and illustrations please visit www.pdz.com.au
JORC Code, 2012 Edition - Table 1 report
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, * Coal cores were taken from continuous cores in the
random chips, or specific specialised industry Carboniferous sections of the boreholes.
standard measurement tools appropriate to the
minerals under investigation, such as down hole gamma
sondes, or handheld XRF instruments, etc). These * Assessment of coal quality and type is based on the
examples should not be taken as limiting the broad results of laboratory tests of the coal samples taken
meaning of sampling. from the borehole cores.
* Include reference to measures taken to ensure sample * All seams equal to, or thicker than 0.60 m were
representivity and the appropriate calibration of any analysed.
measurement tools or systems used.
* Dirt (rock) partings in-seam less than 0.05 m were
* Aspects of the determination of mineralisation that included in the coal sample and analysed with the
are Material to the Public Report. coal.
* Dirt partings equal to, or thicker than 0.05 m were
analysed separately.
* Average core yield was 99.9%. Core yields for both
target seams, 389 and 391 were 100%.
Drilling
techniques * Drill type (eg core, reverse circulation, open-hole * The borehole was drilled open hole to 21 m below the
hammer, rotary air blast, auger, Bangka, sonic, etc) base of the Jurassic, approximately 695 m, and cased.
and details (eg core diameter, triple or standard Continuous coring was used in the in the coal measure
tube, depth of diamond tails, face-sampling bit or strata below. Core diameter was 85 mm (PQ).
other type, whether core is oriented and if so, by
what method, etc).
Drill
sample * Method of recording and assessing core and chip * During the drilling of the borehole coal samples were
recovery sample recoveries and results assessed. collected from the drill core using methods that were
standard for the coal industry in Poland (according
to GWP and international standard ISO 14180:1998(E) -
* Measures taken to maximise sample recovery and ensure Solid mineral fuels - Guidance on the sampling of
representative nature of the samples. coal seams)
* Whether a relationship exists between sample recovery * Core recovery was determined for the coal samples by
and grade and whether sample bias may have occurred measuring the lengths of recovered core and weighing
due to preferential loss/gain of fine/coarse broken/fragmentary core and calculating length to
material. provide an overall recovery length and percentage as
compared to the drilling depths. Final checks are
provided by comparison with thicknesses determined
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.
* All cores were photographed.
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 this announcement. Cores were
support appropriate Mineral Resource estimation, analysed by Centralne Laboratorium Pomiarowo- -
mining studies and metallurgical studies. Badawcze Sp. z o.o. laboratories certified to Polish
national standards and at AHK, Knight Energy Services
Ltd. Certified to international standards. The
* Whether logging is qualitative or quantitative in results are considered fit for purpose.
nature. Core (or costean, channel, etc) photography.
* Detailed borehole records are presented in the
* The total length and percentage of the relevant "Borehole Documentation" which contains the written
intersections logged. description, graphic log (borehole card) and details
of analyses and interpretations, including the final
accepted seam thicknesses.
* The Carboniferous section was fully cored and logged
throughout.
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * Cores were not split but sampled as whole core as is
and sample half or all core taken. standard practice with coal core. Detailed core
preparation recovery measurements were made allowing assessment
of the representative nature of the core analysed.
* If non-core, whether riffled, tube sampled, rotary Cores were wrapped in plastic to prevent moisture
split, etc and whether sampled wet or dry. loss prior to analysis.
* For all sample types, the nature, quality and
appropriateness of the sample preparation technique.
* Quality control procedures adopted for all
sub-sampling stages to maximise representivity of
samples.
* Measures taken to ensure that the sampling is
representative of the in situ material collected,
including for instance results for field
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 assaying and laboratory procedures used and whether practices.
and the technique is considered partial or total.
laboratory
tests * Geophysical logs used in the boreholes include
* For geophysical tools, spectrometers, handheld XRF natural gamma, density (gamma gamma), acoustic
instruments, etc, the parameters used in determining scanner, dual laterolog and caliper logs. These are
the analysis including instrument make and model, of sufficient quality to be used for quantitative
reading times, calibrations factors applied and their (i.e. seam thickness) determinations.
derivation, etc.
* The laboratories used are accredited to national and
* Nature of quality control procedures adopted (eg international standards and have adequate quality
standards, blanks, duplicates, external laboratory control practices including analysis of standards and
checks) and whether acceptable levels of accuracy (ie participation in "round robin" exercises.
lack of bias) and precision have been established.
Verification
of sampling * The verification of significant intersections by * Geological supervision over all drilling works was
and assaying either independent or alternative company personnel. performed by geological staff contracted to PDCo who
are qualified and licensed according to Polish
Geological and Mining Law
* The use of twinned holes.
* These geological staff also performed detailed core
* Documentation of primary data, data entry procedures, logging.
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.
* No adjustments have been made to assay data.
Location
of data * Accuracy and quality of surveys used to locate drill * The borehole location has been accurately determined
points holes (collar and down-hole surveys), trenches, mine and surveyed in the Poland CS2000, zone 8 grid
workings and other locations used in Mineral Resource system.
estimation.
* Detailed topographic maps are available.
* Specification of the grid system used.
* Quality and adequacy of topographic control.
Data
spacing * Data spacing for reporting of Exploration Results. * This announcement of exploration results relates to a
and single borehole, Cycow 9.
distribution
* Whether the data spacing and distribution is
sufficient to establish the degree of geological and * Sample compositing has not been used.
grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedure(s) and
classifications applied.
* Whether sample compositing has been applied.
Orientation
of data * Whether the orientation of sampling achieves unbiased * The borehole was 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 * The borehole has been surveyed for verticality with
considered to have introduced a sampling bias, this maximum deviation of approximately 22 m at a depth of
should be assessed and reported if material. 985 m.
Sample
security * The measures taken to ensure sample security. * All core samples were handled by staff contracted to
PDCo under supervision of a licenced geologist. Core
samples were marked for way up orientation placed in
plastic in fully labelled wooden core boxes. These
staff also undertook core sampling and in the case of
the target seams this was supervised by consultants
contracted to Prairie Mining.
Audits
or reviews * The results of any audits or reviews of sampling * The data and techniques have been reviewed by the
techniques and data. Competent Person and are considered adequate and
appropriate.
============= ============================================================ ============================================================
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 has held the exploration licences to five
and land including agreements or material issues with third Exploration concession areas that constitute the Jan
tenure parties such as joint ventures, partnerships, Karski Mine: Cycow (K-6-7; No. 23/2012/p, updated
status overriding royalties, native title interests, 2013), Syczyn (K-8; No.21/2012/p), Kulik (K-4-5;
historical sites, wilderness or national park and No.20/2012/p), Kopina (K-9; No.22/2012p) and
environmental settings. Sawin-Zachód (No35/2014p).
* The security of the tenure held at the time of * On 1 July 2015, Prairie announced that it had secured
reporting along with any known impediments to the Exclusive Right to apply for, and consequently be
obtaining a licence to operate in the area. granted, a mining concession for the Jan Karski Mine.
* As a result of its geological documentation for the
Jan Karski Mine deposit being approved, Prairie is
now the only entity that can lodge a mining
concession application over the Jan Karski Mine
within a three (3) year period.
* The approved geological documentation covers an area
comprising all four of the original exploration
concessions granted to Prairie (K-4-5, K-6-7, K-8 and
K-9) and includes the full extent of the targeted
resources within the mine plan for the Jan Karski
Mine. Prairie's geological documentation did not
include the Sawin-Zachód concession which may be
added at a later date.
Exploration * Not applicable.
done * Acknowledgment and appraisal of exploration by other
by other parties.
parties
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 * X: 5683824.01 Y: 8438762.15 (Polish CS2000 zone 8)
Information understanding of the exploration results including a
tabulation of the following information for all
Material drill holes: * H: 179.84 m a.s.l
o easting and northing * Nominally vertical, deviation approximately 22 m at
of the drill hole collar 317(o) at base of hole.
o elevation or RL (Reduced
Level - elevation above
sea level in metres) * Hole length/depth - 986.30 m (drilling)
of the drill hole collar
o dip and azimuth of
the hole
o down hole length and
interception depth
o hole length.
* 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. Dirt partings of 5 cm in thickness
(eg cutting of high grades) and cut-off grades are or less have been sampled with the coal.
usually Material and should be stated.
* Where aggregate intercepts incorporate short lengths
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
aggregations should be shown in detail.
* 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
widths approximately 0 - 5 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 will be modelled in 3D
removing the need to calculate the true thickness.
Because of the very low dip the difference between
* If it is not known and only the down hole lengths are intercept thickness and true thickness is not
reported, there should be a clear statement to this significant.
effect (eg 'down hole length, true width not known').
Diagrams * Not applicable
* 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 may drill further boreholes if deemed
tests for lateral extensions or depth extensions or appropriate.
large-scale step-out drilling).
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
=============== =============================================================== ============================================================
This information is provided by RNS
The company news service from the London Stock Exchange
END
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(END) Dow Jones Newswires
May 02, 2017 02:01 ET (06:01 GMT)
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