On May 14, the miner said it was engaged in the acquisition of 14,387 acres of coal leases adjacent to the coking coal mine in southern Colorado’s Las Animas County.
Acquisition of the Secora Ranch lease area extends the New Elk expansion by a further 1346 acres of coal-bearing property.
These expansions will reportedly increase the site’s coal resources by hundreds of tons.
Cline has commissioned Agapito Associates to prepare NI 43-101-compliant technical reports for the coal resources on the expansion sites.
The resource update will be based on New Elk exploration drilling conducted in 2011 and 2012.
A 16-hole campaign in 2011 and a 4-hole follow-up earlier this year will be used to characterize quality and continuity of the deposits.
Agapito reports that the extension leases, including Secora Ranch, contain 618.9 million tons of measured and indicated coal which represents a 288.5Mt increase over the NI 43-101 total for New Elk dated May 27, 2011.
In addition to Colorado, Cline also has a metallurgical coal property in British Columbia, Canada.
