Ashford Coking Coal Project


Potential to produce quality coking coal sought by global steelmakers.

(40% owned with option to purchase remaining 60%)

Ashford will be a conventional Open Cut Mine utilizing proven technology & mining methods

Highlights:

  • Comprises 2 x exploration leases EL6234 & EL6428

  • Open cut mined from 1954 to 1989 supplying coal to the Ashford power station

  • Resource on EL6234 well understood, 200 bore holes

  • No legacy environmental permit issues

  • Stable NSW royalty regime

ARTC Inland Rail Project Creates
an Efficient Route to Market

  • Inland Rail to North Star completed in 2023

  • Changes operability & economics of project

  • Ashford Mine located ~100km of new rail line

  • Train loading facilities to be established

  • Conntect to HV rail network

Approvals Process

  • Environmental permits & consents required before conversion to a mining lease, via a well-defined statutory process

  • Preparation for EIS commenced

  • Engagement & consultation with stakeholders is key

  • Lease areas contained operating coal mine, leaving no remnant environmental legacy

  • Tenements do not contain strategic cropping lands

Production Target/Aim

  • 2026, i.e. 3 to 3.5 years

Clara have a current option to purchase Savannah Goldfields’ 60% interest in the Ashford Project for cash, shares and ongoing royalty. Clara and Savannah are currently in negotiations with respect to the terms and conditions of a proposed early exercise of the option to purchase Savannah’s interest. These negotiations are incomplete.

The Project is located within exploration licence tenements EL6234 and EL6428 in the Northern Tablelands of NSW, approximately 10km north of the Ashford and 65km north of Inverell, a large regional centre.

The company considers that two (2) external and significant factors give confidence to progress further studies into the economic viability of the Project:

1. The Australian Rail Track Corporation (ARTC) proceeding with the Inland Rail Project connecting Brisbane and Melbourne, providing an efficient rail connection to Newcastle Port via the Hunter Valley Coal Rail System. The upgraded rail line will be within 120km of the Ashford Project, a potentially viable trucking distance.

2. Sustained uplift in the global traded coking coal price. Independent forecasts consistently predict increased global demand for steel, with implications for the coking coal price range that could make the sale of coking coal from Ashford economically viable.

Ashford Scoping Study

The current priority is finalising a scoping study examining the viability of developing the Project as a mine to produce coking coal products for export. The study will identify an economic development pathway for the project, based on the data currently available, coal pricing forecasts and defined mining, processing and transportation assumptions. The study includes:

• A qualified financial analysis and pre-tax project metrics. The intended accuracy of financial modeling used in scoping studies is typically +/- 35 to 40%.

• An overview of logistics and marketing.

• A summary of major project risks and opportunities.

• Project development schedule.

Clara engaged independent experts to conduct the concept level technical and commercial work in the specific segments. These work packs are complete. Final stage compilation and editing is being carried out. The outcomes are positive and show the potential opportunity for the Ashford project to deliver strong economic returns to Shareholders. Project logistics positives such as the Inland Rail Project coupled with a strong coal price forecast bodes well for Ashford and Clara looks forward to releasing the Study outcomes shortly.

Ashford Access Agreements

In conjunction with the scoping study the Company is progressing the work for preparation of the Environmental Impact Study. A critical piece of the EIS is to undertake the range of non-invasive baseline environmental studies and doing these things requires access to the lease areas. Access requires negotiating individual agreements with affected stakeholders. The Company has continued meeting with all stakeholders, including pastoralists and representatives of the Gomeroi indigenous group.

Image | Clara Resources presenting to the Gwydir Shire Council. Clara are planning to establish the Ashford train loading facility at North Star, located within the Gwydir council boundaries.