The company said the new system supplied the mine’s air at levels that were completely compliant to air quality standards. The opening used for admittance to the mine was the East Portal at the plant site.

The ramp, Cline said, will not only serve as a passage for personnel, materials and equipment but also has a separate belt-slope for coal transport between the mine and preparation facility.

New Elk has received the needed regulatory approvals and its current efforts are being monitored by US Mine Safety and Health Administration representatives, who are onsite.

As the mine is now accessible – and now designated as an active coal mine – Cline said it would enter and inspect the underground workings as well as roadways and coal seams, and confirm conditions. A mine plan for New Elk will then be developed and once final regulatory approvals are received, production can commence.

The complex, directly accessible by highway from the nearby town of Trinidad, includes a 550 tons per hour capacity coal preparation plant, silos and rail load-out as well as buildings, railway right-of-way and surface real estate. Its assets also include mining equipment, conveyor systems, electrics, underground workings, the mine permit and a coal waste dump.

Cline expects to produce 3 million tons per annum of coking coal and/or high-quality thermal coal from the mine, with initial production of 500,000t in 2009. In May 2008, the property contained a total 315Mt of in-place metallurgical coal.

“As earlier reported, the company plans to bring the New Elk coal mine back into commercial production as soon as possible,” the company said.

“Cline is presently in discussions with financial institutions and financially interested groups with a view to obtaining ongoing financing to bring New Elk into commercial production at its full planned rate.”