Balamara Resources (ASX:BMB) has announced it has contracted Salva Resources to complete a review of the JORC-compliant resources at the Mariola Thermal Coal project aswell as completing a pre-feasibility study by February of next year.
Despite the turmoil in the coal sector, Balamara is still aggressively pursuing the potential development of its Mariola coal project as it wants to have its full feasibility study ready by the end of next year in order to secure funding to construct the mine to get it up and running by the end of 2016. A lot will obviously depend on the coal price, and we’ll be looking forward to see how robust the pre-feasibility study will be at the current (or an even lower) coal price. The updated Mariola project now contains just over 120 million tonnes of coal and this will be the basis for the PFS due later this quarter. Balamara intends to bring Mariola in production in 2016, but we think that timeline might be a bit too aggressive.
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Disclosure: The author holds no position in Balamara Resources. Please see our disclaimer for current positions.
