REY Resources

Shares / Stock Code

REY

Stock Exchange / Sharemarket

Australian Securities Exchange

REY Resources has two groupings of assets. First are the Canning Basin Coal/Petroleum tenements in WA. The total coal inventory is huge, probably over 1B tonnes of thermal coal, with moderate to high ash. REY is developing into a good energy play and this is being reflected in the share price. There are also two very exciting Cu-Au porphyry plays in Chile, Humitos and El Timon. REY will advance exploration on these projects to support an IPO or asset sale from its South American portfolio.

REY has built a footprint in South America with projects in Chile and Peru. Humitos and El Timon are high-priority targets, but are challenging for a junior explorer. The coal projects in WA are looking increasingly likely where the future value of the company lies. Native Title and Heritage Protection Agreements to explore the Liveringa coal project have been signed, paving the way for drilling.

REY owns 100% of an extensive coal basin. During 2008, the company will drill to resource status two areas that it hopes to move to Feasibility Study in 2009, whilst continuing to investigate the basin for additional areas suitable for development. Company was listed on Australian Stock Market (ASX) on 5 June, 2006.

As an explorer, REY has no customers at present. Rey Resources competes with gold and copper explorers including Arafura Resources NL (ARU) and Climax Mining Limited (CMX). Competing coal explorers and producers include BHP Billiton (BHP), Rio Tinto (RIO) and Excel Coal (EXL). Its subsidiaries include Blackfin Pty Limited and Rey Kimberley Pty Limited.

Liveringa Coal Project

The Liveringa Coal Project is located approximately 60 kilometres along strike to the west of the Duchess Coal Project. Previous drilling was undertaken by Thiess and AIE in the 1970s who reported an average Upper Seam thickness of 3m at depths of 20-300m and along a strike distance of approximately 9kms. The coal in this area is believed to dip around 20 degrees and led to the commissioning of a feasibility study on an underground operation at Liveringa.

The study concluded that an economic coal operation was not viable at that time, when prevailing export thermal coal prices were around US$30-$40 per tonne and regional markets were much less developed. Thermal coal prices contract prices were US$100-125 per tonne in 2008, having reached US$200 per tonne earlier during the year.

Only preliminary drilling was undertaken in 2008 which identified an Upper Seam of approximately three metres thick and a Lower, contiguous but banded coal measure of up to 30 metres thick. The seams dip to the south at approximately 25 degrees.

REY Resources Products and Services

  • Exploration and development of mineral tenements - coal tenements in Western Australia, copper properties in Chile and gold prospects in Peru.

REY Resources Locations and Subsidiaries

REY Resources Head Office
Level 8, 50 Clarence Street, SYDNEY,
NSW, AUSTRALIA, 2000
Phone: (02) 9299 9357
Fax: (02) 9262 1403

REY Resources Share Price

Submitted by ASX Listed Company on 27 May, 2010 - 20:31

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