In a sizeable update on its main Amaam project, ASX-listed Tigers Realm Coal (ASX:TIG) has announced it now expects the total coal resource at the Amaam and Amaam North project could approach up to 1.1 billion tonnes of coal. This estimate is based on the current JORC-compliant resource estimate of 593 million tonnes of coal and an additional exploration target of 180-520 million tonnes of coal.
Of the current resource estimate of 593 million tonnes, in excess of 400 million tonnes could be qualified as an open pit resource. The main focus is now on securing funding for the ‘Project F’-zone and even though that will be quite difficult given the current market circumstances, it will be interesting to see how the project could be developed. The open pit at Project F contains in excess of 53 million tonnes of coking coalwith an average calorific value of 6,600 kcal/kg with a sulphur content of 0.32% and an ash content of 17.9%.
The project is located 25 kilometers from a proposed port site which would provide Tigers Realm with an excellent access point to target the seaborne market, but the question remains how keen the prospective Chinese and Japanese buyers will be to provide funding for a new coking coal project when the market is in an oversupply-situation.
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Disclosure: The author holds no position in Tigers Realm. Please see our disclaimer for current positions.
