COAL STUDY – First look at Raven project promising

BRITISH COLUMBIA - COMPLIANCE ENERGY CORP. of Vancouver has received a preliminary assessment of its Raven coal deposit. The property is located on Vancouver Island, 80 km north of Nanaimo. ASSOCIATED GEOSCIENCES LTD. of Calgary prepared the report that examined two underground scenarios: one producing 823,000 tonnes/y of high volatile metallurgical coal and another with an output of 1.4 million t/y of thermal coal. In either case, the capital cost of a mine and port facilities would be $48.3 million.

The study indicated that over a mine life of 20 years, the metallurgical coal option would be the more lucrative. To produce a metallurgical product, costs per clean tonne FOB port would be $79.91 and revenue $110.53, making a potential profit of $30.62/t. To produce a thermal product, costs per clean tonne would be $52.12 and revenue would be $64.21, making a potential margin of only $10.29/t.

The Raven property contains an estimated in situ measured and indicated resource of 39.1 million t and inferred resources of 59.0 million t.

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