The mandates cover works to be delivered leading to the completion of:

• A revised JORC resource for the Nowa Ruda coking coal project, taking into consideration the results from the recently completed 7000m diamond drilling campaign on the two deposits, Waclaw and Lech;
• A pre-feasibility study for Nowa Ruda, indicating preliminary commercial outcomes from a mining operation at this project; and

• A PFS for the Sawin thermal coal project, also indicating preliminary commercial outcomes from a mining operation at this project.

  Salva is targeting completion of both the Nowa Ruda and Sawin pre-feasibility studies by the end of June, which puts it in a “strong position to highlight the considerable asset value within its current portfolio”.

  The Australian-listed coal junior Balamara said the Nowa Ruda JORC upgrade would form “a key component” of the Nowa Ruda PFS and would therefore be completed earlier.

  The company recently announced the results of a PFS for the Mariola thermal coal project on March 4, which revealed a $US312 million ($A410.44 million) net present value from $880 million free cash over a 15-year mine life, for only $79 million of capital expenditure.

  Balamara said it was targeting similar high quality returns from both the Nowa Ruda and Sawin pre-feasibility studies to be completed over the next three months.

  Balamara and Salva are in discussions concerning the overall mandate for the definitive feasibility study for Mariola, internal work for which has already started and preliminary planning will continue through until the middle of this year.

  The main body of work will start mid-year once the Nowa Ruda and Sawin pre-feasibility studies are finished and Balamara and Salva are targeting the completion of Mariola DFS by early 2016.

  Balamara managing director Mike Ralston said the “adding substantial value and working with one of the most capable and experienced technical coal consultants in the world”.

  “Fortunately, HDR [Salva] has the internal resources and capacity to work on several of our projects at the same time, and this adds further value as there is a natural overlap on many key issues, such as local infrastructure, permitting, coal marketing and other areas.

  “We will continue to fast-track these work programmes to maximise value within the Company, with the ultimate objective of achieving first coal production by the end of 2016 and significantly ramping-up coal production thereafter.”