Liberty Resources’ positive scoping study June 29, 2010

Liberty Resources Limited (ASX: LBY) has completed a nine month scoping study to validate the economics of an Underground Coal Gasification (‘UCG’) syngas project in the Denison Trough in Queensland.

The positive results from the study were based on 19,783 PJ of recoverable syngas produced at a cost of $1.79/GJ. Assuming $3.00/GJ sale price for syngas, the model shows Project revenues exceeding A$59 billion. Further studies are being completed on the Denison and elsewhere.

Syngas Project Operating Cashflow has been estimated at $24 billion using a 25.3 GJ/tonne Coal Heating Value (HV) and $11.8billion using 20GJ/tonne HV. Both are considered more than adequate to cover future capital and development costs.

The table (refer to the attcahed anouncement) summarises the Project’s key study findings.

Further opportunities to upgrade the saleable products and hence revenues, as well as reduce operating and capital costs, have been identified.

Click here to view the full announcement.