JUNE 2016 QUARTERLY REPORT

Transcription

1 NEWS RELEASE 29 July 2016 HIGHLIGHTS: JUNE 2016 QUARTERLY REPORT Cal 2.0 The Plish Gvernment has utlined plans t unlck the industrial ptential f the Lublin Cal Basin, under the catchphrase Cal 2.0, where the Ministry f Develpment will supprt the develpment f mdern installatins fr cal utilisatin Cal Markets Cntinue t Imprve Glbal cal prices have imprved by 30% in 2016 and are frecast t recver further ver the medium t lng term. Cal is set t remain critical t Pland s energy future, currently prviding ver 80% f the cuntry s energy needs Develpment Funding Cmmences Preliminary discussins with strategic partners, EPC cntractrs, glbal prject finance banks and ptential fftakers have nw cmmenced fllwing the excellent results f the pre-feasibility study published last quarter Permitting Milestnes Prairie cmpleted a number f significant wrk streams in relatin t the nging Mining Cncessin applicatin including: Cmpleted a draft Depsit Develpment Plan, which was submitted t Plish experts fr initial review and ptimisatin Made substantial prgress n the ESIA, with the envirnmental cnsent prcedure fficially initiated by the Reginal Directr fr Envirnment Prtectin in Lublin Cmmenced lcal land rezning amendments with municipal authrities in the Prject mine area Cntinued the land acquisitin prcess aimed at securing access t the planned surface infrastructure sites fr Prject develpment Ldged an Applicatin fr a pwer grid cnnectin fr the Jan Karski Mine with the reginal pwer distributr Prgressed with the planned railway spur line cnnectin t the natinal railway netwrk which was fficially included in the Lublin Reginal Develpment Strategy during the quarter Hydrgelgical analysis cntinued in rder t prvide enhanced hydrgelgical data fr the ESIA Jan Karski Mine Lcatin was frmally annunced which received strng gvernment and cmmunity supprt Crprate: Strng Financial Psitin Prairie has cash n hand f A$18.1 millin and is in a strng financial psitin t prgress with its planned develpment activities Strng Warsaw market fllwing Prairie cntinues t receive extensive and psitive media cverage as well as a grwing fllwing in the Warsaw market Lndn Office Warsaw Office Registered Office Unit 1C, 38 Jermyn Street Lndn SWY1 6DN Ul. Wspólna 35 lk. 4 Warsaw Level 9, BGC Centre, 28 Esplanade Perth WA Website: ABN: ASX/LSE/WSE: inf@pdz.cm.au PDZ

2 GOING FORWARD: Advance discussins with strategic partners, prject debt prviders and fftakers t structure a develpment financing package fr the Jan Karski Mine Definitive Feasibility Study t cmmence after all Prject ptins have been suitably examined and an ultimate g frward case has been selected Prject permitting activities including the ESIA, spatial planning and land acquisitin will prgress as part f the mining cncessin applicatin Cntinued develpment activity acrss the LCP specifically aimed at imprving knwledge f hydrgelgical cnditins and cnfirming engineering and design requirements fr the shafts Prgress with the planned railway spur line cnnectin frm the Prject int the natinal railway netwrk based n cperatin with Lublin reginal authrities Figure 1: 3D Render f the PFS Mine Site Design Fr further infrmatin cntact: Ben Stikvich Artur Kluczny Chief Executive Officer Grup Executive - Pland inf@pdz.cm.au Page 2

3 JAN KARSKI MINE AT THE LUBLIN COAL PROJECT (Prject) Mining Cncessin Applicatin & Prject Permitting Prairie Mining Limited (Prairie r Cmpany) is currently wrking twards cmpleting a mining cncessin applicatin which in Pland cmprises f the submissin f a Depsit Develpment Plan (DDP), an Envirnmental Scial Impact Assessment (ESIA) that is t be apprved by reginal authrities and apprval f a spatial develpment plan (rezning f land fr mining use). The DDP is a Plish standard mine technical-ecnmic study as prescribed in the Plish mining regulatins. Under Plish law, the envirnmental cnsent decisin has t be btained prir t the btaining f the mining cncessin. The envirnmental cnsent decisin is issued by a specialised envirnmental authrity (the Reginal Directr fr Envirnmental Prtectin). Depsit Develpment Plan During the quarter, the DDP was cmpleted and submitted t lcal Plish experts fr their review and ptimisatin. The DDP is then expected t be submitted fr final review and apprval by the relevant gvernment authrities in early The DDP is a standard mine technical and ecnmic study as prescribed by Plish mining regulatins. The DDP is required t dcument the prper management and extractin f resurces and will be submitted t the relevant Plish gvernment mining authrity fr their review prir t the grant f a mining cncessin at the Prject. The DDP includes ecnmic assumptins based n the Prject s pre-feasibility study (PFS) published in March 2016 and is required t meet specific Plish gelgical standards as well as cnfrming with existing Plish mining regulatin requirements. As part f preparatin f the DDP, the final selectin f the site fr mine surface infrastructure has been frmally cnfirmed and will be used in bth the spatial develpment permitting and the applicatin fr the envirnmental cnsent decisin fr the Prject. Envirnmental and Scial Impact Assessment An applicatin fr an envirnmental cnsent decisin fr the Prject has been submitted t the Reginal Directr fr Envirnmental Prtectin in Lublin alng with a Prject Infrmatin Card, which sets ut the envirnmental prcedure and prject specific issues f emphasis t be included in the ESIA. The Reginal Directr f Envirnmental Prtectin has nw fficially initiated the envirnmental cnsent prcedure. The ESIA, which is currently prgressing, will prvide the relevant authrities with sufficient infrmatin t award the envirnmental cnsent decisin. Prairie is currently n track t cmplete all envirnmental requirements and submit its ESIA t the reginal authrities in late 2016 and expects t receive the Envirnmental Decisin ver the Prject s mining area in The ESIA is an extensive study that includes a wide range f envirnmental mnitring prgrams, field surveys, ecsystem sensitivity assessments, sci-ecnmic surveys and a detailed cmmunity study and stakehlder engagement plan. The scpe f the ESIA has been defined t meet Plish, EU and internatinal standards, including cmpliance with the Equatr Principles t supprt the future financing f the Prject. Land Rezning As part f the PFS and DDP, Prairie finalised the site lcatin fr the Jan Karski Mine, which was selected based n gelgical, mining, transprt and cmmercial cnsideratins. In relatin t the site lcatin, a mtin fr the amendment f lcal land rezning has been ldged by the Cmpany with the lcal cmmune, which allws fr the rezning f land fr the purpse f deep hard cal mining and cnversin f agriculture land where the surface mine infrastructure will be lcated t be designated fr industrial use. The cmmencement f the spatial planning prcedure has been initiated fllwing substantial prgress in acquiring land fr the planned mine site. In June Prairie submitted a frmal applicatin fr the inclusin f a spur line, pwer line and the waste dispsal site at the Prject t lcal cmmunes. Page 3

4 Significant gvernment supprt fr the Prject cntinues During the quarter, Prairie held a cnference in Lublin t annunce the final site selectin fr the future Jan Karski Mine at the Lublin Cal Prject. During the cnference, Prairie presented t lcal authrities, media and cmmunity the prgress the Cmpany has made in its Prject permitting (refer annuncement 25 May 2016), Reginal pliticians cnfirmed their supprt fr the Jan Karski Mine, which will be lcated in the Siedliszcze municipality in the Chelm Shire and has the ptential t create a large number f jbs as well as creating significant ecnmic benefits t the reginal and natinal ecnmy. The cnference received wide cverage in bth lcal and natinal media, including majr newspapers and televisin, and was attended by senir Plish and Australian fficials. The supprt als cmes amid a recent Plish Gvernment annuncement t unlck the industrial ptential f the Lublin Cal Basin, where the Ministry f Develpment utlined plans t supprt the develpment f transprt infrastructure and mdern installatins fr cal utilisatin. Tagged the Respnsible Develpment Plan by Plish Minister f Develpment and Deputy Prime Minister, Mr Mateusz Mrawiecki, he further acknwledged the need fr infrastructure develpment in Eastern Pland. Specific slutins utlined fr the regin included: Unlck the industrial ptential f the Lublin Cal Basin under a catch phrase Cal 2.0; Develp infrastructure, especially express mtrways being part f internatinal rad rutes and the Wiln- Lublin-Rzeszów railway; Enhance clean cal technlgies by building mdern installatins fr cal utilisatin in Lublin; and Establish cmpanies with exprt ptential, ffering high quality jbs. The Plan priritizes the need t establish a lng-term energy plicy t ensure the Pland s energy security, avid pwer shrtages and imprve the ecnmic and labur cnditins in Eastern Pland, while encmpassing supprt fr develpment f industries based n natural resurces. Additinal Drilling Prgram at the Prject During the quarter, Prairie cnducted additinal drilling at the Prject t prvide relevant hydrgelgical data fr the ESIA. Subject t the results f the drilling prgram, Prairie will lk t undertake further gelgical mapping and cre drilling. CORPORATE Strng Warsaw Market Fllwing Fllwing the Cmpany s listing n the Warsaw Stck Exchange in September 2015, the Cmpany cntinues t receive extensive media cverage and a strng fllwing in the Warsaw market. During the quarter, the develpment f the Prject cntinued t be fllwed by lcal and natinal Plish media with extensive psitive cverage and cmmentary being received in numerus publicatins and frm Plish market analysts. During the quarter Prairie held a number f successful press cnferences and wrkshps with Plish fund managers and research analysts as a fllw-up t the PFS results published in March Financial Psitin As at 30 June 2016, the Cmpany had cash reserves f apprximately A$18.1 millin, placing the Cmpany in a strng psitin t cmplete its planned develpment activities at the Prject. During the quarter, Prairie sld its remaining 2.55 millin fully paid shares held in B2Gld Crp. (TSX:BTO) t raise prceeds f A$6.2 millin. Page 4

5 Bard Changes Effective 31 July 2016, Mr Emil Mrfett will resign as a Nn-Executive Directr f the Cmpany. The bard wuld like t thank Mr Mrfett fr his excellent service t the Cmpany and wish him well in his future endeavurs. EXPLORATION TENEMENT INFORMATION On 1 July 2015, Prairie annunced that it had secured the Exclusive Right t apply fr, and cnsequently be granted, a mining cncessin fr the LCP. As a result f its gelgical dcumentatin fr the Lublin depsit being apprved, Prairie is nw the nly entity that can ldge a mining cncessin applicatin ver the LCP within a three (3) year perid. The apprved gelgical dcumentatin cvers an area cmprising all fur f the riginal explratin cncessins granted t Prairie (K-4-5, K-6-7, K-8 and K-9) and includes the full extent f the targeted resurces within the mine plan fr the Prject. Prairie s gelgical dcumentatin did nt include the Sawin-Zachód cncessin which may be added at a later date. As at 30 June 2016, the Cmpany has an interest in the fllwing tenements: Lcatin Tenement Percentage Interest Status Tenement Type Cal Prject, Pland Lublin Cal Prject Mine Plan Area 100 Granted Exclusive Right t apply fr a mining cncessin Cal Prject, Pland Kulik (K-4-5) 100 Granted Explratin Cal Prject, Pland Cycw (K-6-7) 100 Granted Explratin Cal Prject, Pland Syczyn (K-8) 100 Granted Cal Prject, Pland Kpina (K-9) 100 Granted Cal Prject, Pland Sawin-Zachód 100 Granted Explratin Explratin Explratin Prairie Dwns, WA E52/ * Granted Explratin Prairie Dwns. WA E52/ * Granted Explratin * The Cmpany has entered int a farm-in agreement t assign and divest up t 100% interest in the Prairie Dwns Prject Page 5

6 Frward Lking Statements This release may include frward-lking statements. These frward-lking statements are based n Prairie s expectatins and beliefs cncerning future events. Frward lking statements are necessarily subject t risks, uncertainties and ther factrs, many f which are utside the cntrl f Prairie, which culd cause actual results t differ materially frm such statements. Prairie makes n undertaking t subsequently update r revise the frward-lking statements made in this release, t reflect the circumstances r events after the date f that release. Cmpetent Persn Statements The infrmatin in this reprt that relates t Explratin Results, Cal Resurces, Cal Reserves, Mining, Cal Preparatin, Infrastructure, Prductin Targets and Cst Estimatin was extracted frm Prairie s annuncement dated 8 March 2016 entitled Pre-Feasibility Study Cnfirms LCP as One f the Lwest Cst Glbal Cal Suppliers Int Eurpe which is available t view n the Cmpany s website at The infrmatin in the riginal annuncement that related t Cal Reserves, Mining, Cal Preparatin, Infrastructure, Prductin Targets and Cst Estimatin is based n, and fairly represents, infrmatin cmpiled r reviewed by Mr Stephen Newsn, a Cmpetent Persn wh is a Chartered Engineer and Fellw f the Institute f Materials, Minerals and Mining (UK) and has a 1st Class Mine Manager s Certificate f Cmpetency. Mr Newsn is emplyed by independent cnsultants Glder Assciates (UK). Mr Newsn has sufficient experience that is relevant t the style f mineralisatin and type f depsit under cnsideratin and t the activity being undertaken t qualify as a Cmpetent Persn as defined in the 2012 Editin f the Australasian Cde fr Reprting f Explratin Results, Mineral Resurces and Ore Reserves. The infrmatin in the riginal annuncement that related t Explratin Results and Cal Resurces is based n, and fairly represents, infrmatin cmpiled r reviewed by, Mr Samuel Mrhuse, a Cmpetent Persn wh is a Chartered Gelgist and is emplyed by independent cnsultants Ryal HaskningDHV UK Limited. Mr Mrhuse has sufficient experience that is relevant t the style f mineralisatin and type f depsit under cnsideratin and t the activity being undertaken t qualify as a Cmpetent Persn as defined in the 2012 Editin f the Australasian Cde fr Reprting f Explratin Results, Mineral Resurces and Ore Reserves. Mr Mrhuse cnsents t the inclusin in the reprt f the matters based n their infrmatin in the frm and cntext in which it appears. Prairie cnfirms that: a) it is nt aware f any new infrmatin r data that materially affects the infrmatin included in the riginal annuncement; b) all material assumptins and technical parameters underpinning the Cal Resurce, Cal Reserve, Prductin Target, and related frecast financial infrmatin derived frm the Prductin Target included in the riginal annuncement cntinue t apply and have nt materially changed; and c) the frm and cntext in which the relevant Cmpetent Persns findings are presented in this presentatin have nt been materially mdified frm the riginal annuncement. Page 6