Prophecy Coal’s Chandgana Tal is Potentially Economically Viable According to Preliminary Economic Assessment

Prophecy Coal (TSX:PCY,OTCQX:PRPCF,FWB:1P2) announced the NI 43-101 compliant Preliminary Economic Assessment on its Chandgana Tal coal mining licenses in central Mongolia. The PEA excludes the Chandgana Khavtgai exploration license.

As quoted in the press release:

The financial evaluation indicates that the project is potentially economically viable given the coal pricing assumption of US $17.70 per tonne sold at mine gate to the power plant. The coal price is fully indexed and will rise according to rising input costs such as fuel, labor, and parts. The coal project is hence expected to provide stable return throughout the life of mine. The mineral resource estimate covers only Chandgana Tal mining licenses. There exists potential to scale up the Chandgana power plant project and source additional coal supply from Chandgana Coal’s nearby Khavtgai Uul coal deposit. An independent study sponsored by Asian Development Bank suggested a Mongolia power supply deficit of 600MW by 2016 and 900MW by 2019. This deficit could be satisfied by a scaled up Chandgana power plant.

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