an#emerging#coal#development# company# - · pdf...

An Emerging Coal Development Company

AGM Presenta7on November 2011

Cau7onary Statement

The informa,on contained in this document (Presenta7on) has been prepared by NuCoal Resources NL and Doyles Creek Mining Pty Limited (Company). This Presenta,on does not cons,tute an offer or invita,on to any person to subscribe for or apply for any securi,es in the Company.

While the informa,on contained in this Presenta,on has been prepared in good faith, neither the Company or any of its shareholders, directors, officers, agents, employees or advisers give any representa,ons or warran,es (express or limited) as to the accuracy, reliability or completeness of the informa,on in this Presenta,on, or of any other wriIen or oral informa,on made or to be made available to any interested party or its advisers (all such informa,on being referred to as ‘Informa,on’) and liability therefore is expressly disclaimed. Accordingly, to the full extent permiIed by law, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or limited, contractual, tor,ous, statutory or otherwise, in respect of, the accuracy or completeness of the Informa,on or for any of the opinions contained in this Presenta,on or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presenta,on.

Neither the issue of this Presenta,on nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any inaccuracies in, or omissions from, this Presenta,on which may become apparent. The right is reserved to terminate any discussions or nego,a,ons with any person. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connec,on with any appraisal or inves,ga,on of the Company. In furnishing this Presenta,on, the Company does not undertake or agree to any obliga,on to provide the recipient with access to any addi,onal informa,on or to update this Presenta,on or to correct any errors.

This Presenta,on should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. Each party to whom this Presenta,on is made available must make its own independent assessment of the Company aOer making such inves,ga,ons and taking such advice as may be deemed necessary. In par,cular, any es,mates or projec,ons or opinions contained in this Presenta,on necessarily involve significant elements of subjec,ve judgment, analysis and assump,ons and each recipient should sa,sfy itself in rela,ons to such maIers.

This Presenta,on may include certain statements that may be deemed ‘forward‑looking statements’. All statements in this discussion, other than statements of historical facts, that address further ac,vi,es and events of developments that the Company expects, are forward‑looking statements. Although the Company believes the expecta,ons expressed in such forward‑looking statements are based on reasonable assump,ons, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward‑looking statements. The Company, its shareholders, directors, officers, agents, employees or advisers, do not represent, warrant or guarantee, expressly or impliedly, that the informa,on in this Presenta,on is complete or accurate. To the maximum extent permiIed by law, the Company disclaims any responsibility to inform any recipient of this Presenta,on or any maIer that subsequently comes to its no,ce which may affect any of the informa,on contained in this Presenta,on. Factors that could cause actual results to differ materially from those in forward‑looking statements include market prices, con,nued availability of capital and financing, and general economic, market or business condi,ons.

Investors are cau,oned that any forward‑looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in forward‑looking statements.

ASX Code: NCR Slide 2

Corporate Strategy

 Explore -‐ advance explora,on, studies and approvals at the Doyles Creek and Dellworth projects;

 Develop -‐ the Doyles Creek Underground Mine and Training School to generate a posi,ve cash flow and secure a project pipeline commencing with the Dellworth assets;

 Acquire -‐ further expand the project porYolio to become a mul,-‐mine coal producer, by targe,ng acquisi,ons that allow the Board and Management team to enhance value.


Snapshot


Market cap: A$180 million

Projects: Doyles Creek Underground Mine and Training School (100%) Hunter Valley NSW

Dellworth Pty Ltd EL 6594 and EL 6812 (100%) Hunter Valley NSW

Port Access (Doyles Creek): PWCS applica7on submiWed August 2011

Explora7on Underway (Savoy Hill): Ini7al 9 holes commenced September 2011

Coal Products: Semi-‐soZ coking, thermal

Explora7on drilling program to date: 40 holes completed (Doyles Creek)

Industry Training School Facility: Australia’s 1st – industry backed with strong strategic partners

Asset acquisi7ve: Targe7ng further acquisi7ons with synergy / value add opportunity

Resource (Doyles Creek): Indicated – 70.5 Mt Inferred – 434.5 Mt Total -‐ 504.5 Mt

Cash: A$19.4 million (at 31/10/11)

Management: Significant opera7onal experience

2011 Achievements to date


  Upgraded Doyles Creek coal resource to 504 Mt with 70Mt in Indicated category

  Commenced PFS for Doyles Creek Underground Project

  Raised $30M by placement of new shares

  Maree Roberts, Director of Training School commenced;

  Recruited addi7onal key, experienced Opera7onal Management;

  Purchased 100% of Dellworth Pty Ltd (EL 6594 & 6812);

  Nominated for PWCS Port access for Doyles Creek for 2015;

  Purchased 372 ML Hunter River water licence;

  Achieved 100% compliance in detailed compliance review of EL 7270;

  Commenced drilling EL 6812 (Savoy Hill);

  Purchased addi7onal strategic land.

  5 appren7ceship placements and a further 4 scholarships granted

Project Loca7ons


Doyles Creek

Savoy Hill

Dellworth

Click to edit Master 7tle style

Drilling on Savoy Hill – EL 6812. (Nov 2011).

NSW Poli7cal Events 7meline


  An independent probity review into the awarding of EL 7220 to Doyles Creek Mining Pty Ltd was conducted in August, 2010 at the request of the then State Labour Government. The report by O’Connor Marsden & Associates (dated August 23, 2010) concluded in part:

  “...that the then Minister acted within the powers afforded to him under the legisla7on in gran7ng the EL to DCMP. There are a number of examples where direct alloca7ons have been previously made by previous Ministers.”

  In September, 2011 an independent third party audit of the Doyles Creek EL was conducted at the request of the NSW Department of Industry and Investment. This was part of a second stage, state-‐wide review of all current ELs ordered by the current NSW Government earlier this year.

  “Doyles Creek Mining Pty Ltd was assessed by the independent auditors to have complied with all condi7ons, and as such no remedial recommenda7ons have been generated for ac7oning.”

  NuCoal Resources NL (NuCoal, ASX: NCR) notes the introduc,on of a resolu,on into the Parliament by the NSW Government on November 11, 2011 to refer the awarding of EL 7270 to Doyles Creek Mining Pty Ltd (DCMP) to the Independent Commission Against Corrup,on (ICAC).

  In an associated ASX release the Company stated-‐ “NuCoal will cooperate fully with any inquiry into the gran7ng of EL 7270. It is in the interests of our 3400 shareholders, 60% of whom reside in NSW, that the ICAC inquiry is conducted in as 7mely a manner as possible.” Importantly, there were no coal resources defined on EL 7270 at the 7me the licence was granted.

Current Drilling-‐ significant progress over 24 months.


Training School Project


A project to establish a Centre of Excellence in:

o  Mining

o  Training

o  Educa,on

o  Research

Doyles Creek Mining Pty Ltd Finance, mine management and opera,on and coordina,on of research, training and educa,on

Hunter Valley Training Company Voca,onal educa,on and training resources and employment

University of Newcastle Research & Development, Undergraduate and Post Graduate educa,on and placement of students

Westpac Rescue Helicopter Service Paramedic training, OHS training and rescue

simula,ons

Doyles Creek Mining Scholarships/Trainees/Appren7ces


o  Nine Students from The University of Newcastle have been selected over the past 2 years as recipients of the Doyles Creek Mining Scholarships in Earth Sciences (Geology)

o  Trainee Drillers have been employed on the drill rigs used on the project

o  A post graduate “Soil Carbon Research Project” sponsored by DCM in conjunc,on with UON School of GeoSciences

o  A Trainee Administra,on Assistant employed in Corporate office

o  Two trainee explora,on Geologists are employed on the project

o  Five Appren,ces were employed in January 2011, in conjunc,on with Hunter Valley Training Company

2012 Milestone Targets


  Conclude infill drilling at Doyles Creek

  Upgrade Doyles Creek Mineral Resource Statement

  Progress project infrastructure requirements

  Comple7on of Doyles Creek Project Pre Feasibility Study

  Commencement of Doyles Creek Project Bankable Feasibility Study

  Ini7al drilling report on Savoy Hill (EL 6812) stage 1 explora7on

  Commence drilling on Dellworth (EL 6594)

  Training School to be accredited as an RTO

  Complete remaining strategic land purchases for services corridors

Competent Person Statement

The Resources estimate is based on information compiled by Dr. Ian Stone, who is a Member of the Australasian Institute of Mining and Metallurgy (102087). Dr. Stone is Manager, Geology of Palaris Mining Pty Ltd. He has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person, as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr. Stone has over 30 years experience in exploration and mining of coal deposits. Dr. Stone consents to the inclusion of this Resource Estimate in reports disclosed by the Company in the form in which it appears.

APPENDICES


ASX Code: NCR

Corporate History

o  35 coal mines

o  14 producers

o  27 loading points

o  80 different brands of coal

o  34 end buyers

o  12 countries


Strategic Loca7on – Hunter Valley

Savoy Hill

Dellworth

Doyles Creek Project

Organisa7onal Structure-‐ proven track record

Slide 17 ASX Code: NCR

General Manager Opera,ons

Gary Cambourn

Safety, Training, Environment &

Community Manager Kenny Barry

Director Doyles Creek Training Mine Maree Roberts

Commercial Manager & Company Secretary

Megan Etcell

Engineering Manager Greg Nicholls

Project Manager Leigh Nicholls

Managing Director Glen Lewis

Trainee Administra,on Assistant

Rachel Gibbs

Doyles Creek Project

Dellworth Project

Palaris Mining Howarth Drilling

Administra,on Kelly Williams

Holly Stephenson

Doyles Creek Underground Mine and Training School


o  Granted EL 7270 over 2,778 hectares December

2008 for a term of 4 years

o  Independently assessed 504.5 Mt JORC coal

resource

o  Current resource calcula,on on 5 mineable

seams

o  Coal extrac,on planned by underground

longwall mining methods

o  Adjacent to United Collieries (Xstrata) and

Wambo Mine (Peabody Energy)

o  NuCoal owns 440 hectares of land (for surface

infrastructure) over the explora,on area and has

a signed agreement to purchase a further 280

hectares in 2013. This provides 720 hectares of

land across the explora,on area.

Outcomes to date


  DraO mine plans laid out in 5 target seams

  >30 year mine life an,cipated for single seam scenarios

  Seven poten,al product transport corridors iden,fied

  Total capital es,mated at $500m – excludes a Coal Prepara,on Plant for the ini,al 10 years

  Economic modelling indicates financially robust project in excess of 20% IRR

Seam Indicated

Resources (Mt) Inferred

Resources (Mt) Total Resources

(Mt)

West Borehole 27.9 28.8 56.7 Whybrow 5.2 91.6 96.8 Redbank Creek 5.6 96.4 102.0 Whynot 31.3 52.4 83.7 Woodlands Hill - 165.3 165.3 TOTAL 70.0 434.5 504.5

Path to Produc7on


EL’s 6594 & 6812

Project Details


Dellworth Pty Ltd

EL 6812 EL 6594

•  Licence Area: 20.24 km2

•  Licence Renewal: 20 June 2013

•  Loca7on: Hunter Valley, NSW

•  Licence Area: 12.83 km2

•  Licence Renewal: 6 July 2012

•  Loca7on: Hunter Valley, NSW

Savoy Hill ini7al drilling


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