CALGARY – GRANDE CACHE COAL has completed the first quarter of production from its Smoky River operation in Alberta. For the fiscal year ended March 31, 2005, coal sales are estimated at 400,000 tonnes. The cost of sales is expected to be $115/tonne, and capital expenditures are anticipated to total $32 million.
The following fiscal year ending March 31, 2006, looks promising. The company has contracts for 1.5 million tonnes of metallurgical coal at US$125/tonne, 200,000 tonnes of metallurgical coal at US$64/tonne, and 300,000 tonnes of other coal at prices yet to be determined. Average cost of sales for the year is expected to be $65 to $70/tonne.
Grande Cache began production from the No.7 underground mine in November 2004. The planned production rate is 100,000 tonnes/month. It is also developing the No.12S B2 surface mine and refurbishing the wash plant. Grande Cache intends to recover 24.7 million tonnes of saleable coal over a 12-year period.
The company’s website is available at www.gccoal.com.