www.clinemining.com
Cline Mining is in the business of acquiring, exploring and developing mine mineral resource properties to production in Canada, United States and overseas. The Company is a growth-oriented mine finder, developer and operator with an experienced management team and is supported by its strategic international corporate partner and shareholder, Mitsui Matsushima, a Japanese coal miner and conglomerate, which is also represented on the Cline Board of Directors.
Cline is developing its Lossan and Lodgepole metallurgical coal mine projects in British Columbia, Canada – C.I. 43 101 compliant Reports and feasibility studies completed; extensive diamond drilling program in progress at its Cline Lake gold property Ontario, Canada; additional iron ore mineral exploration on extensions and step-out areas at its Bekisopa, Madagascar iron ore properties; development of its New Elk metallurgical and thermal coal mine property in Colorado, U.S.A.
Cline Mining boosts resources at New Elk, rate of return and value rises
Toronto-based Cline Mining (TSE:CMK) reported today increased resources at its New Elk coal mine in southern Colorado, as the company released an updated NI 43-101 compliant technical report that includes results from the new Blue seam.
The report, prepared by Agapito Associates, estimated total in-place measured and indicated resources of 388.5 million tons of coal, up from 315 million tonnes in March of last year.
The new figure includes 191.2 measured million tons, and 197.3 million indicated tons.
The company said the additional 73.5 million tons stems from the exploration and addition of the new Blue seam into the coal resource and initial 20 year mine plan.
The study is now based on four coking coal seams: Blue, Maxwell, Apache and Allen, with the Blue seam being closest to the surface of all four. Cline said seam qualities are generally consistent, and are not expected to require mine site blending for the coking market.
The Blue seam lies above the Maxwell seam, and just 50 feet below the elevation of the New Elk coal processing plant.
Metallurgical coal production, which is currently coming from only the Apache seam since last December, is expected to ramp up this year, projected to reach a level of 2.75 million tons in 2012, and 3.00 million tons in 2013 through 2030.
According to the 2011 technical report, the New Elk coal mine has a pre-tax net present value of US$1.4 billion, at a 10% discount rate, with a more than 100% internal rate of return (IRR) and a payback period of almost two years. These figures are based on the first 20 years of coal production and sales, the company said.
The latest projections compare with those in 2010, which showed a net present value of $1.0 billion, and an IRR of 99%, based on the same 20-year scenario.
Aside from New Elk, Cline owns several properties in Canada and abroad at exploration stage.
