Morien Provides Update on Donkin Coal Mine
Morien Provides Update on Donkin Coal Mine
May 21, 2019 – Halifax, Nova Scotia – Morien Resources Corp. ("Morien" or the "Company")
(TSXV:MOX), is pleased to announce that it has received notice from Kameron Collie ries ULC
(“Kameron”), the owner and operator of the Donkin Coal Mine (“Donkin” or “Mine”) in Cape
Breton, Nova Scotia, that it has been granted approval by the Nova Scotia Department of Labour
and Advanced Education (“LAE”) for a revised ground control pro cedure which allows for the
continuation of mining and development operations at Donkin.
Kameron announced in early January 2019 that LAE had rescinded its approval of the existing
ground control procedure at Donkin due to a fall of ground . No workers wer e injured nor
equipment damaged. Kameron submitted a revised ground control procedure and mine plan to
LAE in late January and was subsequently granted approval to recommence mining on a limited
scale. Since that time, Kameron has operated on a limited basis at a reduced capacity using the
interim ground control plan.
With the re -commencement of normal operations at Donkin, Kameron currently ha s two fully
operating coal sections. These include one section with a recently installed flexible conveyor
train, which is a continuous haulage, mobile conveyor belt that replaced the shuttle car fleet in
that section. The second coal section is using a traditional shuttle car fleet. Both coal sections are
actively developing the Mine’s main underground infrastructure and first production panel.
Morien owns a gross production royalty for the Mine of 2% on the revenue from the first
500,000 tonnes of coal sales per calendar quarter , net of certain coal handling and transportation
costs, and 4% on the revenue from any coal sales from quarterly tonnage above 500,000 tonnes ,
net of certain coal handling and transportation costs. The r oyalty is payable to Morien on a
quarterly basis over the anticipated 30+ year mine life.
Morien’s royalty payments from Kam eron increased from $4k in Q2 2017 , when production at
Donkin commenced, to $298k in Q4 2018. During Q1 2019, while production was temporarily
suspended and while Kameron operated at a reduced capacity , Morien’s Donkin royalty
decreased to $169k. At full production of 2.75 to 3.0 million saleable tonnes per year (1,2), and
using a wid e range of coal pricing (CAD $60 to $120 per tonne), royalty payments to Morien
could be in the order of CAD $5.0 to $9.0 million annually (2).
In January 2019, it was repo rted that Provincial Energy Ventures Ltd. (“PEV”) is proceeding
with the first phase of its $75 million expansion of its export facility in Sydney, Cape Breton.
PEV is located approximately 30 kilometres from the Mine and is currently responsible for
handling all of the exported coal from Donkin. Once complete, the PEV port will be capable o f
accommodating larger vessels and is expected to have the capacity to export up to 3 .0 million
tonnes of Donkin coal annually. A new, dedicated coal haul road that w ill by -pass certain
communities along the current truck route between Donkin and PEV is expected to be complete
during the first half of 2019.
Footnotes:
(1) The above technical disclosures are consistent with the information in the technical report
titled “Technical Report, Donkin Coal Project, Cape Breton, Nova Scotia, Canada” dated
November 2012, found on Morien’s SEDAR profile.
(2) These values are only estimates based on assumptions Morien manageme nt consider
reasonable, as of Q2 2019, and would o nly be a chieved if and when Donkin reaches
permitted production levels. Actual results and royalties received, if any, subject
primarily to production rates and coal pricing, may vary from those estimated by Morien.
Morien incurs general and administrative ex penses in respect of the administration and
preparation of filing of regulatory filings as a public company, collection of revenues
from the aforementioned royalties and seeking and acquiring new mineral projects.
Qualified Person
Dawson Brisco, P.Geo. ( Nova Scotia), President and CEO of Morien, is a Qualified Person as
that term is defined in National Instrument 43 -101 and has reviewed and approved the scientific
and technical information contained in this news release.
About Morien
Morien is a Canada based, dividend paying, mining development company that holds royalty
interests in two, long life, world class, tidewater accessed projects. The Donkin Coal Mine
commenced production in 2017 and the Black Point Aggreg ate Project was permitted in 2016
and is progressing toward a development decision. Morien’s management team exercises
ruthless discipline in managing both the assets and liabilities of the Company. The Company’s
management and its Board of Directors consider shareholder returns to be paramo unt over
corporate size, number or scale of assets and industry recognition. Morien has 53,793,864 issued
and outstanding common shares and a fully diluted position of 57,220,614. Further information
is available at www.MorienRes.com.
Forward-Looking Statements
Some of the statements in this news release may constitute "forward -looking information" as
defined under applicable securities laws. These statements reflect Morien's current expectations
of future revenues and business prospects and opportunities and are based on information
currently available to Morien. Morien cautions that actual performance will be affected by a
number of factors, many of which are beyond its control, and that future events and results may
vary substantially from what Morien currently foresees. Factors that could cause actual results to
differ materially from those in forward -looking statements include risks and uncertainties
described in Morien’s annual information form filed with the Canadian Securities regulators on
SEDAR (www.sedar.com) on April 26, 2016. Morien cautions that its royalty revenue will be
based on production by third party property o wners and o perators who will be responsible for
determining the manner and timing for the properties forming part of Morien’s royalty portfolio.
These third party owners and operators are also subject to risk factors that could cause actual
results to dif fer materially from those predicted herein including: volatility in financial markets
or general economic conditions; capital requirements and the need for additional financing;
fluctuations in the rates of exchange for the currencies of Canada and the Uni ted States; prices
for commodities including gold, coal and aggregate; unanticipated changes in production,
mineral reserves and mineral resources, metallurgical recoveries and/or exploration results;
changes in regulations and unpredictable political or e conomic developments; loss of key
personnel; labour disputes; and ineffective title to mineral claims or property. There are other
business risks and hazards associated with mineral exploration, development and mining.
Although Morien believes that the f orward-looking information contained herein is based on
reasonable assumptions, readers cannot be assured that actual results will be consistent with such
statements. Morien expressly disclaims any intention or obligation to update or revise any
forward-looking information in this news release, whether as a result of new information, events
or otherwise, except in accordance with applicable securities laws. All dollar values discussed
herein are in Canadian dollars. Any financial outlook or future-oriented financial information in
this news release, as defined by applicable securities laws, has been approved by management of
Morien as of the date of this news release. Such financial outlook or future -oriented financial
information is provided for the purpo se of providing information about management's current
expectations and plans relating to the future. Readers are cautioned that such outlook or
information should not be used for purposes other than for which it is disclosed in this news
release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
For more information, please contact:
Dawson Brisco, President & CEO
Office: (902) 423-6419
Mobile: (902) 403-3149
or
John P.A. Budreski, Executive Chairman
Phone: (416) 930-0914
www.MorienRes.com