BRITISH COLUMBIA - The feasibility study on the Lossan coal mine project in the Peace River Coalfield has been released by Vancouver's CLINE MINING. The study looks at the development of an operation producing 1.0 million tonnes/year of medium volatile bituminous pulverized coal injection (PCI) and metallurgical coking coal over a 14-year mine life.
The study was based on saleable proven and probable reserves of 13.93 million tonnes, recoverable from the surface. There is a further 186.1 million tonnes in the measured and indicated categories plus 53.5 million tonnes in the inferred category. Projected capital costs are approximately $57 million; production costs are estimated at US$80/tonne for PCI coal and US$90/tonne for metallurgical coal.
Cline has begun the permitting process for the Lossan coal project. Subject to regulatory approvals and coal sales contracts, construction and commissioning are scheduled to commence in the first quarter of 2007 and plant start-up in mid-2007. An updated technical report for the Lossan coal project will be filed by the company with the appropriate Canadian securities regulators within 45 days.
Visit www.ClineMining.com for details of the Lossan project and Cline's other projects.
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