Prairie Downs Metals has released its scoping study for Lublin Coal project (LCP) that reported the project's potential to be developed as a large scale mine.
Located in the Lublin Coal Basin in south eastern Poland, the project is expected to produce nearly 8.8 million tons a year run-of-mine coal delivering 6.7 million tons a year of saleable coal, over a mine-life of 22 years.
The study has also revealed that the project can produce coal at cheapest rate delivered into Europe with average annual operating cash costs of about $37 per ton, besides delivering EBITDA of up to $391m.
Prairie Downs Metals claimed that Lublin Coal project’s 1.6 billion ton JORC Resource has affirmed that the project is a multigenerational asset and its production can be expanded significantly, exceeding the proposed scoping study mine plan.
Prairie CEO Ben Stoikovich said that with the scoping study complete the company would now look to begin a pre-feasibility study on the Lublin Coal Project in the coming weeks.
"The Lublin Coal Project has the potential to become a significant new coal producer within the industrial heartland of Europe and offer a strategic supply of high quality semi-soft coking and premium thermal coal regionally within Poland and to nearby European markets, and for seaborne export. We look forward to the Project providing a tremendous boost in local employment opportunities and benefits for the regional and national economy," added Stoikovich.
Prairie is intending to continue drilling at the LCP and undertake a pre-feasibility study over the coming weeks with completion of the study scheduled during the first half of 2015.