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More reserves located at New Elk

CANADA-based Cline Mining has filed an updated technical report for its New Elk underground opera...

Donna Schmidt
More reserves located at New Elk

The company filed a National Instrument 43-101 (NI 43-101) compliant report completed by Agapito Associates to replace a previous version.

The mine’s Measured and Indicated resources have risen from 315 million tons (87.6Mt measured and 227.4Mt indicated) to 388.5Mt (191.2Mt Measured, 197.3Mt Indicated).

The additional tonnage stems from the exploration and addition of the Blue Creek seam into the coal resource and mine plan; the plan now includes the Maxwell, Apache, Allen and Blue seams.

The Blue seam is the closest to the surface, lying above Maxwell and just 50 feet below the elevation of the New Elk mine’s coal processing plant.

Cline officials said the mine’s seams are low-sulfur, medium to high-fluidity, high-volatile B bituminous metallurgical coking coals, and as they are generally consistent they are not expected to require onsite blending for the coking market.

New Elk coal production commenced last December from one continuous mining machine in the Apache seam.

Continued development in that seam, along with a planned portal and slope to the Blue seam, should allow for an additional nine continuous miners to begin operation in their designated mining areas.

The mine’s saleable metallurgical coal production will continue ramping up this year and reach production of 2.75Mt in 2012 and 3Mt in 2013 through 2030.

Cline expects this year’s production and sales rate to be 350,000t.

“All ten continuous mining machines are projected to be producing coal from the mine by the end of 2011,” the company noted in the report.

“The continuous mining machines are organized into five super sections to maximize productivity [and] the rated capacity of each super section is 1Mt of raw coal annually. The ten continuous mining machines are projected to produce 3Mt of high-quality metallurgical coal annually.”

Cline’s has met coal properties in British Columbia, Canada and Colorado.

It also has iron ore interests in Madagascar and owns the Cline Lake gold mine property in northern Ontario, Canada.

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