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JAMESON RESOURCES LIMITED — Interim / Quarterly Report 2017
Jan 22, 2018
65152_rns_2018-01-22_37e01aae-5946-463a-9cab-eb58c7bb1622.pdf
Interim / Quarterly Report
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Jameson Resources, ABN 34 225 891| Level 2, 79 Hay Street, Subiaco WA 6005 | [email protected] |+61
ASX RELEASE
23 January 2018
The Manager Australian Securities Exchange Companies Announcement Centre 20 Bridge Street Sydney NSW 2000
ACTIVITIES REPORT FOR DECEMBER QUARTER 2017
Highlights
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❖ The Application Information Requirements (“AIR”) document moved closer to final review and approval, as the formal document portion of the pre-application phase of the Environmental Assessment process moves toward conclusion.
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❖ A gap analysis for Bankable Feasibility was completed, firms were identified to potentially become members of the execution team, and plans are being made to allow Bankable Feasibility to progress later this year.
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❖ Phase I of the design/engineering for the spoil disposal facility was undertaken. In January positive findings were announced and Phase II was authorized to commence.
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❖ Initial drafting of the Application for an Environmental Assessment Certificate began.
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❖ Most base line field work activities are now completed, with report generation underway.
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❖ Discussions with potential off-take and/or JV partners continued as Jameson focuses on funding remaining pre-construction activities.
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❖ As at 31 December 2017 the Top 20 shareholders held approximately 62% of the capital of the Company and the Company held A$3.4 million in cash. Jameson remains debt-free.
Jameson Resources I ABN 34 225 891 | Suite 5, 62 Ord Street, West Perth WA 6005 | [email protected] |+61 8 9200 4473
Overview
Jameson Resources Limited (“Jameson” or “the Company”) continued to accelerate and broaden activities associated with the Crown Mountain Coking Coal project (“Crown Mountain” or the “Project”) as the pre-application phase of the EA process moves closer to conclusion.
Coking coal prices remain well above those assumed in the PFS Update. This, and the continued advancement of the project on multiple levels, has facilitated a growing number of discussions with off-take and/or strategic investors with respect to funding future aspects of project development.
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Figure 1 – Project Location Plan
Jameson Resources I ABN 34 225 891 | Suite 5, 62 Ord Street, West Perth WA 6005 | [email protected] |+61 8 9200 4473
Project Summary
Crown Mountain Project - Elk Valley Coal Field, British Columbia
The remaining required formal document, a revised AIR (Application Information Requirements), is under review by provincial and federal regulators. Approval is expected late this quarter or early Q2.
The AIR represents the blueprint for preparing the Application for an EA Certificate. As most of the content is already agreed upon with the regulators, Jameson has elected to move ahead, on a controlled basis, with drafting the Application for an Environmental Assessment Certificate.
Initial design/engineering has focused on the spoil disposal facility and associated predicted water quality. Elements such as selenium are known to leach out of local coal mines’ spoil piles. Jameson retained two leaders in this field, SRK Consultants and Enviromin, to evaluate our conceptual plan for addressing this issue at Crown Mountain. Phase I of that process commenced in the quarter. After quarter’s end, the results of Phase I were announced to be positive, and Jameson authorized Phase II to begin. Phase II is a 3-4-month laboratory process to further evaluate the concept.
Almost all base line field work to support the EA Application has been completed. Specialists are now evaluating collected data and compiling reports. Those reports form the input for drafting the EA Application.
The Company is designing a summer exploration program for Crown Mountain. Elements include collection of bulk sample for additional and more detailed coal quality testing, drilling additional ground water monitoring stations, acquiring geotechnical data via shallow drill holes and trenches, and exploring the fringe areas of the resource to determine the potential to expand the reserve base. Results of this program represent inputs into engineering/design, EA Application, and Bankable Feasibility.
During the quarter, the province initiated the referral process on the new coal exploration license applications Jameson filed in August. Should these licenses be issued in time, activities will be initiated as part of the summer exploration program.
Discussions continue with potential strategic partners to:
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(a) obtain the required funding to complete the permitting, bankable feasibility, and design engineering processes for Crown Mountain, and
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(b) Define the framework for funding project construction once the required permits are in hand.
Conversations with port and rail providers continued during the reporting period, confirming availability of required capacity, with additional meetings scheduled later this month.
Coking coal prices this quarter remained considerably higher (above US$225/tonne) than the US$155/tonne benchmark assumed in the April PFS Update.
Jameson Resources I ABN 34 225 891 | Suite 5, 62 Ord Street, West Perth WA 6005 | [email protected] |+61 8 9200 4473
Dunlevy Project – North East British Columbia
No activity occurred at Dunlevy, which remains in good standing with the province, and represents a future opportunity for Jameson.
Corporate
Jameson has 256.6 million shares outstanding, $3.4 million in cash and equivalents at quarter’s end, and no debt.
Jameson is continuing on track with the objectives outlined per its capital raisings in June and September 2017, and applying the funds towards advancing the Environmental Assessment process and design engineering. Management remains dedicated to increase the value of the Company by aggressively de-risking and advancing Crown Mountain.
On Behalf of the Board of Directors,
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Art Palm
Chief Executive Officer and Acting Chairman
Jameson Resources I ABN 34 225 891 | Suite 5, 62 Ord Street, West Perth WA 6005 | [email protected] |+61 8 9200 4473
About Jameson Resources Limited
Jameson Resources Limited (ASX:JAL) is a junior resources company focused on the acquisition, exploration and development of strategic coal projects in western Canada. The Company has a 90% interest in the Crown Mountain coal project, and a 100% interest in the Dunlevy coal project located in British Columbia. Jameson’s tenement portfolio in British Columbia is positioned in coalfields responsible for the majority of Canada’s metallurgical coal exports and are all close to railways connecting to export facilities.
To learn more, please contact the Company at +61 89200 4473, or visit: www.jamesonresources.com.au
Forward Looking Statements
This announcement contains “forward-looking statements”. Such forward-looking statements include, without limitation: estimates of future earnings, the sensitivity of earnings to commodity prices and foreign exchange rate movements; estimates of future production and sales; estimates of future cash flows, the sensitivity of cash flows to commodity prices and foreign exchange rate movements; statements regarding future debt repayments; estimates of future capital expenditures; estimates of resources and statements regarding future exploration results; and where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to commodity price volatility, currency fluctuations, increased production costs and variances in resource or reserve rates from those assumed in the company’s plans, as well as political and operational risks in the countries and states in which we operate or sell product to, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s Annual Reports, as well as the Company’s other filings. The Company does not undertake any obligation to release publicly any revisions to any “forward looking statement” to reflect events or circumstances after the date of this release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
Jameson Resources I ABN 34 225 891 | Suite 5, 62 Ord Street, West Perth WA 6005 | [email protected] |+61 8 9200 4473