Cline Mining acquires Cabin Creek through applications
Cline Mining Corp CMK
Shares issued 23,173,925 Feb 17 close $0.135
Mon 23 Feb 2004 News Release
Mr. Ken Bates reports
CLINE ACQUIRES THE CABIN CREEK COAL MINE PROJECT
Cline Mining has acquired the Cabin Creek metallurgical hard coal mining
property in the southeastern British Columbia coal field. The property has
been acquired by way of approved coal licence applications.
The Cabin Creek coal property is located 46 kilometres southeast of the
town of Fernie in the Canadian Rocky Mountains. All presently producing
properties in this coal mining area of the province are owned by the Elk
Valley coal partnership (Teck Cominco 35 per cent -- Fording 65 per cent)
and include the Fording River mine, Greenhills mine, Line Creek mine,
Balmer mine (Elkview) and the Coal Mountain mine. The Elk Valley
partnership presently produces about 22 million to 26 million tonnes of
hard coking coal annually for sale from these coal mines in British
Columbia for shipment to steel mills around the world, and is presently the
only producer and exporter of hard coking coals from Canada.
The Cabin Creek property and proposed mine project cover an area of 1,494
hectares and are connected by 11 kilometres of logging access road to the
Sage Creek hard coking coal deposits. Previous work consisting of detailed
topographical and geological mapping, surface trenching and the extraction
of two bulk samples from adits driven into each of the two seams has been
undertaken by previous owners Shell Canada Resources and Crowsnest
Resources. This work indicates that the Cabin Creek deposit structure is a
gently dipping syncline which outcrops around a hill top and hosts an
inferred resource of 8.2 million tonnes of in-place coal. The two coal
seams found at Cabin Creek total in thickness to 14.7 metres and are
believed to correlate with seams 4 and 5 at Sage Creek. Carbonization tests
by the Canadian government Canmet laboratory indicate a product coal with
Ash of 9.4 per cent to 9.6 per cent; volatiles of 25 per cent to 25.8 per
cent, FSI of 4.5 to seven; JSI30/15 Drum Index of 90.1 to 93.5. A target
strip ratio of 5:1 BCM to a clean coal tonne was recorded by the previous
owner of the property. The coal resources in place at the present time are
complementary to the company's nearby Sage Creek coal mine project,
providing early low strip ratio and low-cost coal to the company's coal
mine developments in British Columbia. A drilling program is being planned
to bring the Cabin Creek resource to National Instrument 43-101 standard.
Cabin Creek is the second major southeastern British Columbia hard
metallurgical coal mine property acquired by Cline Mining during the last
six months.
In Stockwatch on Oct. 15, 2003, Cline announced the acquisition of the Sage
Creek hard coking coal mine property project which covers an area of 2,590
hectares, in southeastern British Columbia. Sage Creek is about 20
kilometres south of the Cline Cabin Creek coal mine project. Sage Creek,
which was previously owned by Rio Algom (now BHP/Billiton), was the subject
of extensive drilling, mapping, trenching and bulk sampling, with coal
resources calculated and reported by the initial owners at 149.9 million
tonnes of in-place coal in three coal seams, totalling an average coal
thickness of 28 metres. The Sage Creek feasibility reports completed by the
previous owners contemplated the construction and operation of a coal mine
to produce hard coking coal for export at a rate of between 1.7 million and
three million tonnes of hard metallurgical coal annually for 20 years,
depending on the transportation method.
The company plans to drive six adits into the Sage Creek coal seams for
bulk sampling purposes, has applied for the appropriate work permits and
also plans to carry out work on the previous database to bring it to
National Instrument 43-101 standards.
The Cabin Creek coal represents additional sales tonnage and will be
economically complementary to Sage Creek.
WARNING: The company relies upon litigation protection for
"forward-looking" statements. |
