The news comes days after the company would revise its mine plan as a result of a positive turn in its resources totals.

Cline said the updated estimates for the complex in Trinidad showed 618.9 million tons of measured and indicated coal resources, a jump of 230.4Mt.

New Elk’s inferred coal resources total 104.5mt, an increase of 81.8Mt, or a spike of 360%.

The company said the increases were due to a deal made with the Department of Wildlife and the state of Colorado for an extension of its DOW property lease area from 15,553 acres to 29,940 acres – or a 92% growth. The extension area also includes its recently acquired Secora Ranch and four neighboring coal seams.

The resource report and National Instrument 43-101 (NI 43-101) compliance report was filed by its retained consultant, Agapito Associates.

“This latest resource update further demonstrates that the New Elk coal mine property is a significant asset that the company expects will produce considerable amounts of coal over a very long mine life,” chief executive officer Ken Bates said.

New Elk is comprised of the Green, Loco, Blue, Bing Canyon Upper, Red, Maxwell, Apache and Allen coal seams in a total plan area of 34,060 acres.

The complex’s seams are classified as low sulfur, high-volatile B bituminous coal, and can be marketed as a high-ash metallurgical-grade coal, a PCI coal or a thermal coal.

Earlier this month, as a result of the news from Agapito, New Elk said it was replanning the New Elk complex to optimize its operation.

This included appointing former Xstrata engineer and manager of underground mining David Stone to head the subsidiary.

“Taking into account the inclusion of the additional 230.4 million tons of measured and indicated 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,” Stone said.

“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. A forecast will also be developed during this period for the remainder of the 2012 year and a budget for the 2013 year.

“These actions will enable the provision of appropriate volume and cost guidance as the operation tracks from the completion of the opening project through to Phase 1 of the production cycle.”

Cline Mining is a mine development and coal exploration company with significant metallurgical coal property interests in British Columbia and Colorado.