Lysander, East Coal plan Verticalnaya North

Lysander Minerals Corp (C:LYM)
Shares Issued 23,046,130
Last Close 5/22/2009 $0.13
Monday May 25 2009 - News Release

Mr. Bryce Porter reports

VERTICALNAYA ANTHRACITE MINE PROJECT PROGRESSES. LYSANDER ALSO PLANS VERTICALNAYA NORTH SATELLITE PROJECT

Lysander Minerals Corp. has provided project indicators showing that good progress is being made by East Coal Company Ltd. of Ukraine. Following the award of rights over assets and infrastructure of the Verticalnaya mine, in addition to the mining lease it holds, East Coal is now preparing to assume control of operations at the mine. Lysander has an option to acquire Ukraine Energy Ltd., the 51-per-cent owner of East Coal.

Lysander and East Coal have also developed conceptual plans for a separate, relatively small satellite project, the Verticalnaya North project (VNP), that may provide cash generation from possible production from the first of up to three longwalls within two years. Development of VNP could commence in advance of the Verticalnaya mine. It will have separate surface facilities from the existing facilities and no washing plant is planned. Any sales will be to the domestic Ukraine power market. VNP will mainly access coal that is separate from the 27.2 million tonnes of reserves of the Verticalnaya mine.

IMC Group Consulting Ltd., of the United Kingdom, is preparing a technical report on VNP, to be compliant with National Instrument 43-101.

A technical report dated September, 2008, by IMC on the Verticalnaya mine is available on SEDAR and on the Lysander website. Lysander intends to develop Verticalnaya as expeditiously as possible, subject to constraints affecting capital markets.

Key data for Verticalnaya mine

Key project indicators from the September, 2008, technical report are as follows:

Initial capital expenditures

 US$ 237.8 million

 

 Net present value @12%

 US$ 352.1 million

 

 Internal rate of return

 35.2%

 

 Average cash operating cost per saleable tonne

 US$ 31.19/tonne

 

 Pay back period

 7 years

 

 

 Proven reserves

 16,200,000 tonnes

 

 Probable reserves  

 11,000,000 tonnes

 

 Measured resources   

 57,300,000 tonnes

 

 Indicated resources  

 18,900,000  tonnes

 

 Total resources   

 76,200,000 tonnes

 

 Resources are inclusive of reserves.