The Vancouver-based company said the National Instrument 43-101 (NI 43-101) compliant review, prepared by US consultant Pincock, Allen and Holt, found the property near Comox has a measured and indicated coal resource of 72 million tons and an inferred coal resource of 59.4Mt.

Capital expenditure for the project’s pre-construction phase is estimated at $C240.1 million, with $32 million more in sustaining capital.

“The PFS concludes that the project is financially attractive with an estimated pre-tax net present value (8 per cent discount rate) of $201.9 million at an average realized coal price of $142 per tonne [prices are free on board Port Alberni],” officials said.

Construction is expected to begin at Raven in 2012 following the receipt of all needed permits, and first coal shipments are anticipated in 2012.

Once coal is transported by conveyor belt to the surface, Compliance will process an average of 1.88Mt onsite to yield approximately 830,000tpa of semi-soft metallurgical and thermal middlings coal for its 16-year lifespan.

Clean coal tonnage will range from 650,000t to 1.1Mt per year on initial start.

Once processed, the producer said, Raven’s coal will be hauled to Port Alberni in western Vancouver Island and sent to Asia, most likely Japan and Korea.

The mine’s operating costs are expected to be in line with a typical room and pillar operation with conveyor transport.

Onsite costs are expected to average $60.30 per million tons of saleable coal, while off-site costs are estimated to average $15.07/Mt of saleable coal, for a total average operating cost of $75.37.

“The company and its consultants are continuing to advance the study work in order to complete the feasibility study,” Compliance officials said.

“Areas of uncertainty in engineering design that must be addressed further to determine feasibility including reject geochemistry and groundwater inflows and geochemistry to determine underground water management and, if necessary, water treatment requirements.”