NUCOAL RESOURCES LIMITED Report
EL 7270 VALMIN Code Valuation
Company | NuCoal Resources Ltd |
Site | NSW |
Date | July 2018 |
Doc No | NCR4718-01 |
NuCoal Resources Ltd
EL 7270 VALMIN Code Valuation - Report
DOCUMENT HISTORY | |||
Report To | Megan Etcell | ||
Project No. | NCR4718 | ||
Doc No. | NCR4718-01 | ||
Name | Date | Version | |
Author | Martin Hibberd Brad Willis John Pala | 25 May 2018 | V2 |
Peer Review By | John Pala | 25 May 2018 | V2 |
Draft Issued To | Megan Etcell | 25 May 2018 | V2 |
Updated Draft Issued To | Megan Etcell | 31 May 2018 | V3 |
Updated Draft Peer Review By | John Pala | 31 May 2018 | V3 |
Final Draft Review By | John Pala | 31 May 2018 | V3 |
Final Draft Issued To | Megan Etcell | 31 May 2018 | V3 |
Final Review By | John Pala | 6 July 2018 | V4 |
Final Issued To | Glen Lewis Megan Etcell | 10 July 2018 | FINAL |
Newcastle | Brisbane | Wollongong | Palaris Europe Limited |
PO Box 1225, Newcastle NSW 2300 | PO Box 1225, Newcastle NSW 2300 | PO Box 1225, Newcastle NSW 2300 | 2nd Floor, Hygeia Building |
1/384 Hunter St, Newcastle NSW 2300 | 11/500 Queen St, Brisbane QLD 4000 | 3/166 Keira St, Wollongong NSW 2500 | 66-68 College Rd, Harrow |
Australia | Australia | Australia | Middlesex HA1 1BE |
P: +61 2 4927 5511 | P: +61 2 4927 5511 | P: +61 2 4927 5511 | United Kingdom |
F: +61 2 4927 5522 | F: +61 2 4927 5522 | F: +61 2 4927 5522 |
palaris.com | ABN: 13 093 424 867
NuCoal Resources Ltd
Report: EL 7270 VALMIN Code Valuation
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July 2018 | NCR4718-01 | Page 3 of 48
NuCoal Resources Ltd
Report: EL 7270 VALMIN Code Valuation
Contents
Executive Summary ........................................................................................................................................... 6
1 Overview .................................................................................................................................................. 8
1.1 Introduction .................................................................................................................................... 8
1.2 Purpose of Report ......................................................................................................................... 8
1.3 Public Reporting ............................................................................................................................ 8
1.3.1 Written Engagement ......................................................................................................... 8
1.3.2 Previous Reports and Limitations ..................................................................................... 9
1.3.3 Type of Report .................................................................................................................. 9
1.4 Materiality ...................................................................................................................................... 9
1.4.1 Confidential Information .................................................................................................. 10
1.5 Indemnities .................................................................................................................................. 10
1.6 Declaration .................................................................................................................................. 10
1.6.1 Capability and Competence ............................................................................................ 10
1.6.2 Sign-Off ........................................................................................................................... 11
1.7
Site Inspection ............................................................................................................................. 11
2 Tenure ................................................................................................................................................... 12
2.1 Location ....................................................................................................................................... 12
2.2 Purpose of Report ....................................................................................................................... 13
2.3 Tenement Details ........................................................................................................................ 13
2.4 Adjacent Tenements ................................................................................................................... 14
2.5 History ......................................................................................................................................... 14
3 Technical Assessment .......................................................................................................................... 16
3.1 Regional and Local Geology ....................................................................................................... 16
3.1.1 Regional Geology ............................................................................................................ 16
3.1.2 Local Geology and Structure .......................................................................................... 16
3.1.3 Stratigraphy ..................................................................................................................... 17
3.1.4 Intrusions ......................................................................................................................... 19
3.2 Exploration History ...................................................................................................................... 19
3.2.1 Austen and Butta ............................................................................................................. 19
3.2.2 Bayswater Colliery Company .......................................................................................... 19
3.2.3 Departmental of Mineral Resources Drilling ................................................................... 19
3.2.4 Seismic Survey ............................................................................................................... 22
3.3 Exploration Results ..................................................................................................................... 22
3.4 Prospectivity ................................................................................................................................ 24
3.4.1 Bayswater Colliery Company .......................................................................................... 24
3.4.2 Department of Mineral Resources .................................................................................. 25
3.5 Coal Quality ................................................................................................................................. 26
3.6 Coal Resources, Ore Reserves, Exploration Results and Exploration Targets .......................... 27
3.6.1 Findings from Historical Exploration ............................................................................... 27
3.6.2 Coal Resources ............................................................................................................... 27
3.7 Infrastructure Availability and Requirements .............................................................................. 28
3.8 Environmental, Social and Heritage Impacts .............................................................................. 28
3.9 Geological and Geotechnical Risks ............................................................................................ 29
July 2018 | NCR4718-01 | Page 4 of 48
NuCoal Resources Ltd
Report: EL 7270 VALMIN Code Valuation
4 Valuation ................................................................................................................................................ 30
4.1 Background ................................................................................................................................. 30
4.2 Basis of Value ............................................................................................................................. 31
4.3 Common Valuation Methods ....................................................................................................... 31
4.3.1 Multiples of Exploration Expenditure Approach .............................................................. 33
4.3.2 Comparable Transactions ............................................................................................... 34
4.3.3 Geoscientific Rating Approach ........................................................................................ 35
4.4 Valuation Results ........................................................................................................................ 35
4.5 Valuation ..................................................................................................................................... 39
5 References ............................................................................................................................................ 42
Figures | |
Figure 2.1 | Doyles Creek project area location ............................................................................................. 12 |
Figure 3.1 | Doyles Creek area fault locations ............................................................................................... 17 |
Figure 3.2 | Stratigraphic column ................................................................................................................... 18 |
Figure 3.3 | Historical borehole location plan ................................................................................................. 21 |
Figure 3.4 | Graphic log from DM Jerrys Plains DDH10 (Hawley, 1991) ....................................................... 22 |
Figure 3.5 | The Doyles Creek area relative to A172 and A400 ..................................................................... 25 |
Tables | |
Table 1.1 | Valuation summary - EL7270 ....................................................................................................... 7 |
Table 1.1 | Contributors qualifications and contributions .............................................................................. 11 |
Table 2.1 | History of the Doyles Creek area ................................................................................................ 14 |
Table 3.1 | Summary of Departmental Drilling Programs ............................................................................. 20 |
Table 3.2 | Summary of seam intervals in boreholes .................................................................................... 23 |
Table 3.3 | Summary of coal quality results .................................................................................................. 26 |
Table 3.4 | Doyles Creek geological and geotechnical risks ......................................................................... 29 |
Table 4.1 | Valuation methods (Spence, 2000) ............................................................................................. 32 |
Table 4.2 | PEM multiplier used in MEE valuation technique ....................................................................... 34 |
Table 4.3 | Multiples of exploration expenditure method valuation summary ............................................... 36 |
Table 4.4 | List of comparable transactions for early stage exploration projects .......................................... 37 |
Table 4.5 | Comparable transaction values per unit of area ......................................................................... 37 |
Table 4.6 | Comparable transaction method valuation summary .................................................................. 38 |
Table 4.7 | Base Acquisition Cost basis of calculation .................................................................................. 38 |
Table 4.8 | Geoscientific ratings and valuation ranges ................................................................................. 39 |
Table 4.9 | Valuation summary - EL7270 ..................................................................................................... 40 |
July 2018 | NCR4718-01 | Page 5 of 48
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Disclaimer
NuCoal Resources Ltd. published this content on 01 November 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 01 November 2018 03:37:07 UTC
