Overview of Clara Resources and the Ashford Coking Coal Project

Clara Resources Australian Ltd (ASX: $C7A) has announced the completion of the Scoping Study for the Ashford Coking Coal Project in NSW. The study demonstrates a strong economic and technically robust coking coal operation with a modest capex estimate of Au$133.6m, an estimated mine life of 12 years, and a project NPV of Au$156m (post-tax). The study also highlights the potential for exploration upside, BOOT financing, higher processing yield, and funding from various sources.

Executive Commentary on Scoping Study Results

We are encouraged by the outcomes of the Ashford Coking Coal Project Scoping Study. The Study demonstrates the potential to build and operate an economic coking coal mine on the northern tablelands of NSW with a mine life of at least 12 years. A further encouraging aspect is the potential for upside in the forms of reduced capital requirements, higher coking coal prices, and longer-term resource increase leading to longer mine life. These factors would all positively impact the physical and financial metrics presented in the Scoping Study. The potential to extend mine life, reduce pre-production capital, and lower mine strip ratio are realistic. The Scoping Study is very much aligned with our commitment to safe, efficient development and operations. Key stakeholder engagement has commenced early, including with Gomeroi, pastoralists, and the community. The interaction with governments and regulatory bodies has been proactive.

Summary of Scoping Study and Future Plans

The completion of the Scoping Study for the Ashford Coking Coal Project by Clara Resources (ASX: $C7A) demonstrates the potential for a strong economic and technically robust coking coal operation. The study highlights the modest capex estimate, estimated mine life of 12 years, and the project NPV of Au$156m (post-tax). Additionally, the study outlines exploration upside potential, BOOT financing, higher processing yield, and funding from various sources. The company is now transitioning into the Pre-Feasibility Study (PFS) phase, focusing on further exploration, mine design, stakeholder engagement, and project funding options. The CEO, Peter Westerhuis, expressed confidence in securing the necessary funding and highlighted the potential contributions of the Ashford Project to the local, state, and federal economies.