Agapito Associates, a provider of geo-engineering, mining engineering consulting services, reported that a total M&I coal resource for the New Elk coal mine of 618.9 million tons and an additional 104.5 million tons of Inferred coal resource were identified.
It also included the extended Department of Wildlife lease, the Secora Ranch, and the four new coal seams.
Elk chief operating officer David Stone said taking into account the inclusion of the additional 230.4 million tons of Measured and Indicated ("M&I") coal resources identified through the updating of the Company’s resource by Agapito Associates, a detailed optimization process has been commenced to ensure that the optimum Net Present Value is achieved for the asset.
"It is envisaged that this process should take approximately 10 to 12 weeks and will include short-term volume optimization for a defined ‘Life of Mine’ value maximization," Stone added.
Cline Mining president, CEO and director Ken Bates said the company is preparing a new mine plan under the guidance of David Stone to maximize the mine’s production and in parallel develop a world class longwall mining complex.
"The New Elk coal mine holds tremendous potential to be a major, long-term hard coking coal producer," Bates said.
"The Company believes that through this thorough planning and review process, the asset will demonstrate its optimum potential so that it is poised for growth as the metallurgical coal market strengthens."
