Cline Mining New Elk coal mine development



    
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    THE UNITED STATES/
    

    TORONTO, June 30 /CNW/ - Cline Mining Corporation ("Cline" or the
"Company) (TSX:CMK). Cline Mining announces that it has now re-opened access
to its New Elk coal mine, following successful completion and continuous
operation of the newly installed mine air ventilation system, which now
provides air to the mine at fully compliant operational mining air quality
standards. The mine was entered by opening the main East Portal ramps located
at the plant site. This ramp provides miner man-way and materials and
equipment access into the mine and a separate belt-slope which delivers raw
coal production from the mine into the adjacent coal preparation plant. The
requisite regulatory approvals and authorizations have been issued as
required, and the company's operational activities are monitored on site by
the Mine Safety and Health Administration ("MSHA").
    The New Elk mine is designated an 'Active' coal mine and full regulatory
compliance is strictly observed in all operations and activities. With access
now available, the Company will enter and inspect the mine, roadways and coal
seams, confirm conditions, develop the formal New Elk mine plan and will be in
a position to recommence coal mining, subject to final regulatory approval of
the formal New Elk mine plan and completing installation of the mining and
handling equipment and production facilities.
    Photographs of the mine seal breaking and opening, mine surface
installations, plant site and infrastructures will be posted on the Company's
website at clinemining.com.
    The New Elk Coal mine assets include a coal preparation plant with a
designed production capacity of 550 tons per hour, product coal silos and rail
load-out, buildings, railway right of way, surface real estate, mining
equipment, conveyor systems, electrics, underground workings with mine portal
access from the plant site, mine permit and coal waste dump. The mine is
accessed directly by paved highway from the town of Trinidad, southern
Colorado.
    The New Elk Coal coal mine property contains 315,000,000 tons of National
Instrument 43-101 ("NI 43-101") compliant in-place metallurgical steel making
and thermal grade coals, which are detailed in the May 2008 43-101 Technical
Report from Behre Dolbear & Company Ltd. to Cline. Mr. Gardar G. Dahl Jr.
C.P.G. is the NI 43-101 Qualified Person for the Report. The complete NI
43-101 is available on the Cline website www.clinemining.com and on SEDAR at
www.sedar.com.
    As earlier reported, the Company plans to bring the New Elk coal mine
back into commercial production as soon as possible. On completion of the full
capital and refurbishment program the coal plant and mine is planned to
eventually have the capacity to produce 3 million tons of high quality
metallurgical steel making coal per annum. The mine is also capable of
producing high-quality thermal coal. Coal production is planned to increase
systematically with the re-installation of the steel railway line on the right
of way from the mine connecting to the Burlington Northern Railroad system at
the local town of Trinidad. The BNR is able to service continental customers
as well as export coal terminals on both the Pacific and Atlantic coasts to
reach the global sea-borne trade.
    Cline is presently in discussions with financial institutions and
financially interested groups with a view to obtaining on-going financing to
bring New Elk into commercial production at its full planned rate of 3 million
tons of coal annually, as described. The Company has sufficient funds for its
immediate purpose and is now providing for its near future and continuing
requirement.

    About Cline Mining

    In addition to New Elk Coal, Cline has significant additional
metallurgical coal property interests in British Columbia, Canada with
Canadian Instrument 43-101 compliant independent Technical Reports. The total
43-101 reported measured, indicated and inferred coal in the Cline Canadian
coal resources and in New Elk Coal exceeds 800 million tonnes. Cline Mining
Corporation is a mine development company focused on the exploration and
development of metallurgical steel making coals in Canada and the U.S. iron
ore in Madagascar and gold in northern Ontario, Canada.

    
    CLINE MINING CORPORATION
    Ken Bates, President and Chief Executive Officer

    Forward Looking Information
    

    All statements, other than statements of historical fact, contained in
this news release, including any information as to the Company's current
expectations with respect to the potential acquisition and future development
of the New Elk Coal Properties, constitute "forward-looking information"
within the meaning of applicable securities laws. Words such as "intend",
"may", "will", "plan", "potential" or similar words suggesting future outcomes
identifies forward looking information, which is, by its very nature, not a
guarantee of Cline's future operational or financial performance, and are
subject to risks and uncertainties, both known and unknown, as well as other
factors that could cause the Company's actual results to differ materially
from those expressed or implied in any forward-looking information made by, or
on behalf of, the Company. Readers are cautioned not to place undue reliance
on forward- looking information. By its nature, forward-looking information
involves numerous assumptions, known and unknown risks and uncertainties, of
both a general and specific nature, that could cause actual results to differ
materially from those suggested by the forward-looking information or
contribute to the possibility that predictions, forecasts or projections will
prove to be inaccurate. These factors include, but are not limited to:
uncertainty related to the Company's title to its properties; liabilities
inherent in coal mine development and production; geological, mining and
processing technical problems; the Company's inability to obtain required mine
licenses, mine permits and regulatory approvals required in connection with
mining and coal processing operations; dependence on third party coal
transportation systems; competition for, among other things, capital,
acquisitions of reserves, undeveloped lands and skilled personnel; changes in
commodity prices and exchange rates; changes in steel-making methods and other
technological changes; the oversupply of, or lack of demand for, metallurgical
coal; currency and interest rate fluctuations; various events which could
disrupt operations and/or the transportation of coal products, including
labour stoppages and severe weather conditions; the demand for and
availability of rail, port and other transportation services; the other
factors discussed under "Risk Factors" in Cline's 2007 Annual Information
Form; and management's ability to anticipate and manage the foregoing factors
and risks. Information relating to the magnitude or quality of mineral
deposits is deemed to be forward-looking information.
    Head Offices: Toronto Office: TD Canada Trust Tower, 161 Bay Street, 27th
Floor, Toronto, ON M5J 2S1 / Vancouver Office: Suite 2950 - 650 West Georgia
Street, Vancouver BC V6B 4N8
    The reliability of such information is affected by, among other things:
uncertainty of estimates of their size or composition; uncertainty of
projections relating to costs or production, transportation or estimates of
market prices for products; the possibility of delays in mining activities;
changes in plans with respect to exploration, development projects or capital
expenditures; and various other risks including those relating to health,
safety and environmental matters. The Company cautions that the list of
factors set forth above is not exhaustive. Some of the risks, uncertainties
and other factors which negatively affect the reliability of forward-looking
information are discussed in the Company's public filings with the Canadian
securities regulatory authorities, including its most recent management
information circular, annual report, quarterly reports, material change
reports and news releases. Copies of the Company's Canadian public filings are
available at www.sedar.com. The Company further cautions that information
contained on, or accessible through, this website is current only as of the
date of such information and may be superseded by subsequent events or
filings. Except as required by applicable securities laws, the Company
undertakes no obligation to update publicly or otherwise revise any
information, including any forward-looking information, whether as a
information, future events or other such factors that affect this information.





For further information:

For further information: Ken Bates, President and CEO; Ernest Cleave,
Vice-President and CFO, Office: (416) 572-2002, Email: info@clinemining.com,
Website: www.clinemining.com

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Cline Mining Corporation

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