Cline Mining Corporation
Coal - Gold - Iron-ore - Uranium
Message: New Elk Coal Mine Development
| April 14, 2009 |
| Cline Mining New Elk Coal Mine Development |
| TORONTO, ONTARIO--(Marketwire - April 14, 2009) - NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES Cline Mining Corporation ("Cline" or the "Company) (TSX:CMK) announces that the refurbishment and development to commercial production of its New Elk metallurgical coal mine located in southern Colorado, U.S.A. is proceeding well and Phase I is approaching completion. The New Elk Coal Mine has now been officially designated as an 'Active' coal mine; the east portal re-entry into the mine has been approved and the west portal re-entry is expected to be approved later this month; at which time the entire mine will reopen and coal miner access afforded to the coal seams and faces. New Elk will then be in a position to recommence coal mining, subject to final regulatory approval of the formal New Elk mine plan and completing installation of the mining and handling equipment and production facilities. The Phase I work comprises dewatering the lower level of the underground workings, which is now substantially completed, and the installation and operation of the mine ventilation air fan system, including the steel safety doors, all to full coal mine operating standards. Renovation of the existing mine offices and lab, as well as the site security structures and system has been completed. The work is proceeding with the cooperation and through the approval process of the Colorado Mine Safety and Health Administration (MHSA) Completion of Phase I will allow and permit full access to the mine, roadways and coal faces by suitably qualified coal miners. Phase I, including full testing of full mine air quality, is expected to be completed early May 2009 affording coal miners access to the workings immediately. Photographs of the mine surface installations and the Phase I work being completed can be viewed on the www.clinemining.com website. The New Elk Coal mine assets include a coal preparation plant with a designed production capacity of 550 tons per hour, product coal silos and rail load-out, buildings, railway right of way, surface real estate, mining equipment, conveyor systems, electrics, underground workings with mine portal access from the plant site, mine permit and coal waste dump. The mine is accessed directly by paved highway from the town of Trinidad, southern Colorado. Cline continues with its plan to bring the New Elk coal mine back into commercial production as soon as possible. On completion of the full capital and refurbishment program the coal plant and mine is planned to eventually have the capacity to produce 3 million tons of high quality metallurgical steel making coal per annum. The mine is also capable of producing high-quality thermal coal. The management plan is to recommence initial coal production in 2009 at the annual rate of 500,000 tons of coal following completion of Phase I in early May 2009. The plan is to utilize as much of the existing infrastructure as possible, this includes refurbishment of the existing mine equipment, including the underground coal haulage rail system, and re-installation of new in-mine coal conveyors and the mine electric power system. Refurbishment of the surface coal plant will be a part of the work to bring the mine back into full commercial production. Coal production is planned to increase systematically with the re-installation of the steel railway line on the right of way from the mine connecting to the Burlington Northern Railroad system at the local town of Trinidad. The BNR is able to service continental customers as well as export coal terminals on both the Pacific and Atlantic coasts to reach the global sea-borne trade. The initial coal production tonnage and sales will be delivered to market in trucks to the BNR rail head; the production and sales plan calls for the increase to the present plant design capacity to 3 million tons a year by year three with the re-installation by New Elk Coal of the rail line to the major railroad carriers from the coal plant to provide unit train service from the existing mine load-out. The Company is very satisfied with the recently announced 'benchmark' seaborne trade coal price settlements announced in Asia, and which took effect on April 1, 2009, for quality metallurgical coking coal between the major international steel mills and major coal mining companies. at prices of U.S.$128.00 to $129.00 per metric tonne f.o.b. vessel, for top quality product. New Elk has a high quality metallurgical coal resource and a long history of providing its excellent quality product into the U.S. coking and steel making market. The Company also has in-place mine and infrastructure and low capital and operating costs projected, and is confident in its ability to enter the metallurgical coking coal market at a low cost and to be fully competitive and economic in our industry, world-wide. Cline is presently in discussions with financial institutions and financially interested groups with a view to raising on-going financing to bring New Elk into commercial production at its full planned rate of 3 million tons of coal annually, as described. The Company has sufficient funds for its immediate purpose and is now providing for its near future and continuing requirement. The New Elk Coal coal property contains 315,000,000 tons of National Instrument 43-101 ("NI 43-101") compliant in-place metallurgical steel making and thermal grade coals, which are detailed in the May 2008 43-101 Technical Report from Behre Dolbear & Company Ltd. to Cline. Mr. Gardar G. Dahl Jr. C.P.G. is the NI 43-101 Qualified Person for the Report. The complete NI 43-101 is available on the Cline website www.clinemining.com and on SEDAR at www.sedar.com. About Cline Mining In addition to New Elk Coal, Cline has significant additional metallurgical coal property interests in British Columbia, Canada with Canadian Instrument 43-101 compliant independent Technical Reports. The total 43-101 reported measured, indicated and inferred coal in the Cline Canadian coal resources and in New Elk Coal exceeds 800 million tonnes. Cline Mining Corporation is a mine development company focused on the exploration and development of metallurgical steel making coals in Canada and the U.S. iron ore in Madagascar and gold in northern Ontario, Canada. CLINE MINING CORPORATION Ken Bates, President and Chief Executive Officer |
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