TSX-V TRADING SYMBOL: CEC
VANCOUVER, May 26 /CNW/ - Compliance Energy Corporation (the "Company")
is pleased to provide a progress report on the Raven Underground Coal project
on Vancouver Island British Columbia.
Compliance Coal Corporation dba Comox Joint Venture ("CJV") has just
received an exploration permit from BC's Ministry of Energy, Mines and
Petroleum Resources to drill up to 53 holes (15,000 meters) on the Raven
Underground Coal Project. The Raven project has 39,093,000 tonnes of measured
and indicated and 59,004,000 tonnes of inferred coal resources as reported in
the Company's 43-101 Technical Report prepared by O.R. Cullingham Resource
Consultant Ltd. The primary objective of this year's exploration program is to
increase the 39.0 million tonnes of measured and indicated resources by
upgrading the 59.0 million tonnes of inferred resources. In addition,
extensive coal quality sampling and testing will be conducted including
washability, carbonization, and petrographic tests. The Raven Coal deposit is
inherently a High Volatile A Bituminous metallurgical coal and the testing
will help determine the ultimate wash plant process and forecasted plant yield
and the coal's suitability for sale on the international metallurgical,
thermal and PCI coal markets. In addition, this summer's program will include
hydrogeological sampling including the installation of six piezometers and two
pump tests. Gas desorption canisters and geotechnical samples will also be
taken to assist in mine design.
The CJV is currently reviewing responses to its Requests for Proposals to
complete a feasibility study on the project and will announce a successful
bidder in the near future. The successful bidder will immediately begin
preliminary work on the feasibility study and is targeting delivery of a final
feasibility study in the second quarter of 2010 after incorporation of the
results from this year's drilling program. The Raven project has an existing
elaborate network of logging roads so only a minimal amount of new road and
drill pad construction will be necessary before drilling can commence.
Drilling is expected to commence by June 01, 2009 and be finished in the
fourth quarter of 2009.
In addition to this summer's exploration program, the CJV has also hired
AMEC Earth and Environmental to prepare an environmental assessment on the
project. AMEC has initiated its environmental baseline monitoring including
hydrology, surface water quality, wildlife, and fisheries. The CJV expects to
file a project description with BC's Environmental Assessment Office in June
2009 and is targeting to file an application for an environmental assessment
certificate in the second quarter of 2010.
All of the activities leading up to a production decision will be funded
from the $7.0 million held in the CJV's bank account.
Compliance Energy Corporation's shares trade on the TSX Venture Exchange
under the symbol CEC and investor information is available on the Company's
web page at www.complianceenergy.com.
On behalf of the Board of
COMPLIANCE ENERGY CORPORATION
Chief Executive Officer
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Note: This release contains forward-looking statements that involve risks
and uncertainties. These statements may differ materially from actual future
events or results. Readers are referred to the documents, filed by the Company
on SEDAR at www.sedar.com, specifically the most recent reports which identify
important risk factors that could cause actual results to differ from those
contained in the forward-looking statements. The Company undertakes no
obligation to review or confirm analysts' expectations or estimates or to
release publicly any revisions to any forward-looking statements.
For further information:
For further information: Greg Werbowski, Investor Relations or Rod
Shier, CFO at (604) 689-0489