Canadian explorer surges on review of coal prospect
miningweekly.com
By: Liezel Hill
Published on 6th June 2008
Shares in TSX Ventures Exchange-listed Cash Minerals leapt 25,6% on Friday, after the company said that it had launched a strategic review to relook at the economic potential of its Division Mountain coal property, in Canada's Yukon Territory.
Rising demand and prices for coal had prompted the company to update its studies on the viability of exporting coal, as well as on the potential for a coal mine at Division Mountain to provide feedstock to a proposed mine-mouth power station.
The Division Mountain property contains a measured resource of 52,5-million tonnes of high volatile B bituminous thermal coal.
"The aim of Cash Minerals' strategic repositioning plan is to assess all of the company's projects to determine which assets would provide a greater return to shareholders," said president and CEO Greg Duras.
An independent feasibility study on a mine at the project was completed in 2006, and Cash Minerals plans to commission the same company to update the feasibility study to “reflect current improved market conditions and opportunities”.
An exploration program will also be designed to determine the potential for metallurgical coal on the property and to upgrade and expand the existing resource.
The company, which is also exploring for uranium in Yukon Territory, said it was also actively seeking additional coal assets.
Cash Minerals shares rose C$0,055 a share on Friday, to C$0,27 apiece by 15:59 in Toronto. More than 11,47-million shares changed hands.
Editor: Liezel Hill |
