REG - Bens Creek Group PLC - Mining update

Bens CreekAnnouncement

07/11/2022 07:00

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RNS Number : 4527F  Bens Creek Group PLC  07 November 2022

7 November 2022

 

Bens Creek Group plc

 

("Bens Creek" or "Company" or the "Group")

 

Mining update

 

Bens Creek Group plc (AIM:BEN), the owner of a metallurgical coal mine in
North America supplying the steel industry, is pleased to announce that
preliminary production from the new permit area has been encouraging following
commencement of mining on this area at the end of October 2022.

 

The Company was able to produce 2,500 tons of run of mine coal in a single day
with a higher clean coal recovery of 62%. Furthermore, the Company can confirm
that initial analysis suggests that the coal seam being mined under the new
permit is approximately 50 inches which is greater than the coal seam on the
Company's original permitted site, which had a coal seam thickness of 38
inches.

 

To accommodate the additional capacity of future production on the new permit
area and to attain the optimum recovery levels, Ben's Creek has started to
reduce cost and manpower by accelerating the process plant facility upgrades.
This will be achieved by the Company modifying the truck dump belt
infrastructure and through the integration of an additional dryer into the
existing processing plant, which is expected to provide elevated coal recovery
and raw throughput capacity of the processing plant facility.

 

As of 7 November 2022, the Company has introduced a second shift on its first
highwall miner which will allow the Company to double daily production. The
Company can also confirm that the creation of the required benches to support
the second highwall miner are progressing quickly. As such the Company will
soon be requesting the second highwall miner. The Company has previously
stated, in the mine plan agreement with Mega Highwall Mining LLC, that it will
then be ready for further production by the end of December 2022. Once the
second highwall miner is fully mobilised and operational, the Company intends
to introduce a two-shift production schedule on this highwall miner as well.

 

The Company is still reviewing its options with regards to its own highwall
miner and it has recently received offers in excess of the purchase price
which are currently under consideration.

 

The Company has largely completed the acquisition or rental of all the
necessary ancillary mobile equipment with all equipment now being on site
except for the highwall miner. This has allowed the Company to move away from
contractors to an owner operator model and progress towards full production as
a result.

 

The Company is getting ready to initiate an aggressive core drilling program
with the objective of improving its metallurgical coal reserve base and expand
its recoverable and mineable tons. The Company will be utilising the results
from this drilling program to build into the already started third permit
application for the surface/highwall miner, as well as two additional
underground operations at the same time with this third permit. These advances
are important for the Company's future operations at the Bens Creek mine as
they are expected to allow the Company to increase productivity and maintain
the operational momentum that has been built by the Ben's Creek team.

 

Adam Wilson, Chief Executive Officer of Bens Creek, commented:

 

"The set up to allow us to move from a contracted fleet to an owner operated
fleet with two highwall miners is nearly completed.  This, together with the
remediation of the infrastructure (from what was a previously idle mine) and
the commencement on the underground mine for the creation of a first walking
super section, is nearing completion. An update on resources and the issue of
a new mining permit have taken place at an expedited pace over the last twelve
months and we remain confident that 2023 will be a good year for Bens Creek.
The regular train deliveries and inventory build are now expected to commence
alongside the increased production. As with all mining projects, more
production spreads the cost across more tonnage and thus reduces the average
unit cost per ton, thereby increasing margins."

 

 

For further information please contact:

 Bens Creek Group plc                                            +44 (0) 204 558 2300

 Adam Wilson, CEO

 Murat Erden, CFO

 Allenby Capital Limited (Nominated Adviser and Joint Broker)    +44 (0) 203 328 5656

 Nick Athanas / Nick Naylor / George Payne (Corporate Finance)

 Kelly Gardiner (Sales and Corporate Broking)

 Optiva Securities Limited (Joint Broker)                        +44 (0) 203 137 1902

 Christian Dennis / Mariela Jaho / Daniel Ingram

 

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