In May, Cline hired former Xstrata engineer and manager of underground mining David Stone to head its New Elk 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, Inc … 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.”

Agapito reported last May a total measured and indicated coal resource for New Elk of 619Mt and an additional 105Mt of inferred coal resource.

These findings include New Elk’s extended Department of Wildlife lease, the recently acquired Secora Ranch and four new coal seams, and represent a 289Mt increase over the NI 43-101 total calculated in May 2011.

Cline president, chief executive 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. 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.”

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