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 |
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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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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