CLINE MINING CORP. 
By Ken Bates, CEO and Director of Cline Mining, commented: "The global coal market, in which metallurgical coal prices have decreased sharply over the last two quarters, is incredibly challenging for coal companies at the present moment and is a direct reflection on excess inventories and current soft demand. We are focused on, and committed to, navigating this challenging environment. We have taken all the necessary actions so that we preserve our capital position and conserve our working capital. The implementation of the marketing strategy is also key and we are firmly committed to this process and to achieving a financially viable and economic rate of return for our coal product. The New Elk mine is an asset with long-term potential as markets recover."
Temporary Production Suspension at New Elk Mine
As announced in the Company's July 11, 2012 news release, the
Company temporarily suspended production at its New Elk mine
in order to manage costs and preserve the Company's financial
condition. While the duration of the suspension was expected
to be approximately sixty (60) days, the Company, due to
current market forces, will continue the suspension of
operations at New Elk pending improved market conditions.
The Company is implementing a long-term marketing strategy to
sell its current stockpile and future production at a rate
that is financially viable. Though the Company anticipates
that production will resume, variability of market conditions
and other economic factors continue to make it impossible to
project an exact personnel return date with certainty.
The technical mine planning review process for operations of
the New Elk mine, conducted by the recently- appointed New
Elk Coal Company LLC Chief Operating Officer, David Stone,
has been completed on schedule. The primary focus has been on
the development of the Central Zone of the mining lease which
provides optimum utilization of the already present
infrastructure coupled with the highest short-term production
output. The technical mine plan review now demonstrates the
optimal resource and recovery coupled with the overall focus
on increasing the Net Present Value ("NPV") of the asset. The
Northern and Southern areas of the lease provide an
exceptional upside case and will be developed once the action
plan for the Central Zone is complete. These areas in
supplement to the Central Zone facilitate the ability to
perform low capital brownfields expansion.
The Company continues to build appropriate Life Of Mine
operating schedules and new financial and cost analysis for
the project, and expects to formalize this review and
production plan at the time that it resumes production.
David Stone, Chief Operating Officer of New Elk, commented:
"The results of the review have clearly demonstrated that the
resource can be transformed into a world class mining
complex. The entire plan has been built from first principles
taking into account geology, equipment and infrastructure. A
detailed implementation action plan inclusive of all required
factors including safety, human resources, financials,
logistics, engineering and maintenance is well underway for
the entire operation and we are confident that upon the
securing of an off-take agreement the projected plan will be
achieved."
Cline has metallurgical coal property interests in Colorado, U.S.A. with NI 43-101 independent Technical Reports. Cline Mining Corporation is focused on the exploration and development of metallurgical steel making coals in the U.S., and on its iron ore property in Madagascar and its Cline Lake gold property in northern Ontario, Canada.
Forward-Looking StatementsThis press release contains forward-looking statements (including "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995) relating to, among other things, the operations of the Company, the environment in which it operates and the Company's future financial and operating performance. Generally, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Such statements are based on assumptions, estimates, forecasts and projections made in light of the trends, conditions and expected developments that are considered to be relevant and reasonable in the circumstances at the date that such statements are made. Forward-looking statements are not guarantees of future performance and such information is inherently subject to known and unknown risks, uncertainties and other factors that are difficult to predict and may be beyond the control of the Company. A number of factors and assumptions may cause actual results, level of activity, performance or outcomes of the Company to be materially different from those expressed or implied by such forward-looking statements including, without limitation, the future price of coal, the estimation of mineral reserves and resources, capital, operating and exploration expenditures, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters and other risks set forth in other public filings of the Company. Consequently, undue reliance should not be placed on such forward-looking statements. In addition, all forward-looking statements in this press release are given as of the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.
Head office:Brookfield Place, 181 Bay Street, 3rd Floor, Clarkson Gordon Heritage Building, Toronto, ON, M5J 2T3
Contact:
Ken Bates, President and CEO Office: (416) 504-7600
Email: kbates@clinemining.com
Belinda Labatte Greg DiTomaso The Capital Lab
Office: (647) 438-2193
Email: investor@clinemining.com
|
distributed by
|
