TORONTO, June 23, 2011 /CNW/ - Pacific Coal Resources Ltd. (TSX-V: PAK)
announced today the commencement of exploration drilling at its high
quality steam coal and asphaltite property at La Tigra; the completion
of the new truck fleet delivery; an update on the Barranquilla Port,
coke operation infrastructure, and the Company's new website; and an
update on the previously announced investment option agreement. The
Company also confirms its first quarter 2011 earnings release date.
Luis Carvajales, Chief Executive Officer of Pacific Coal, commented: "We
are pleased that the Company is progressing according to plan. By
exploring the upside potential at La Tigra, we aim to achieve a
National Instrument 43-101 compliant technical assessment by the first
quarter of 2012, which we expect will significantly increase our
reserves and contribute to the organic production growth by late-2012.
We anticipate timely execution of all of our active projects in order
to achieve our growth objectives."
Exploration at La Tigra
Drilling at the La Tigra deposit began on June 19, 2011 with the
objective of the preparation of a National Instrument 43-101 compliant
technical report by the first quarter of 2012.
RM Tecnoperforaciones SAS was selected to undertake drilling operations
at La Tigra after a competitive bid process. RM Tecnoperforaciones SAS
is a renowned and reputable drilling services company, having rendered
services to numerous multinational operating coal mines in Colombia.
Management estimates that production is still on track to commence in
Update on delivery of new truck fleet
The Company's new truck fleet was delivered in full, including 100
trucks in total. Seventy of these trucks are expected to be in full
operation by the end of the second quarter of 2011, serving both the La
Caypa and La Divisa (Cerro Largo) mines. The balance of 30 trucks is
expected to be fully operational early in the third quarter of 2011.
Transportes Sanchez Polo, known as Colombia's most reputable and
experienced coal transport company, has been retained to provide fleet
management and transport services for an initial one-year period
allowing for annual renewals.
The commissioning of 70 trucks has increased the total truck fleet
available to Pacific Coal to over 170 units, which covers the Company's
export schedule comfortably for the balance of 2011.
Update on investment option agreement
Pacific Coal provided an update on the Investment Option Agreement (the
"Agreement") with ALPHA, NDT and Bioenergy International Inc.
("BIOINT") previously announced on April 6, 2011. Pursuant to this
Agreement, Pacific Coal has the right to acquire up to a 20% equity
interest in BIOINT in exchange for a US$20 million investment. Pacific
Coal agreed to advance US$5 million out of its US$20 million investment
in BIOINT in exchange for a 5% equity interest and the Company agrees
to fund the remaining US$15 million subject to the successful testing
of Colloidal Coal in Water ("CCW") and Colloidal Asphaltite in Water
("CAW") within the 3-month period following the completion of such
testing. The required samples have been collected and prepared by
The above mentioned US$20 million investment in BIOINT also grants the
Company a carried interest up to US$20 million in a 50/50 joint venture
with BIOINT to build one or more plants to produce and market CCW/CAW
out of its mines in Colombia. It is expected that the first plant will
cost approximately US$40 million. Accordingly, the Company will only
need to contribute additional funds to the joint venture, if the cost
of the plant(s) exceeds US$40 million. The plant(s) is to be operated
by BIOINT and BIOINT would be entitled to an operating fee to cover
operating costs and expenses, plus a 6% technology royalty on the sales
of CCW/CAW from this plant(s). Pacific Coal will retain the right to
sell the coal and/or asphaltite to the joint venture company at market
Update on Barranquilla Port
The Company has received a technical review and financial assessment
from Nathan Associates Inc., setting forth six conceptual alternatives
with corresponding capital expenditure estimates for the development of
the Barranquilla Port. Pacific Coal has requested further details on
one of the proposed alternatives to determine feasibility. In the
interim, soil surveys and topographical mapping are being conducted.
Pacific Coal is aiming to tender for detailed engineering, construction
and procurement by the fourth quarter of 2011 pursuant to commissioning
of the port starting in the third quarter of 2012.
Update on Coke infrastructure
Eighty beehive ovens are now operational and the Company expects to
commence commercial production in the third quarter of 2011. The
construction of an additional eighty beehive ovens is progressing on
schedule and are expected to be commissioned in the third quarter of
Construction of crushing, blending and washing facilities is progressing
according to schedule and are due to be commissioned in the third
quarter of 2011.
Launch of Website
The Company's website is now live and can be accessed at www.pacificcoal.ca. News releases, financial reports, and investor presentations will be
updated and posted to the website as they become available.
First Quarter 2011 results
Pacific Coal will be filing its first quarter 2011 earnings on June 29,
2011 after market close. A press release will be issued and will
include a production update on La Caypa and Cerro Largo.
About Pacific Coal Resources Ltd.
Pacific Coal Resources Ltd. is a Canadian-based mining company focused
on steam coal, coking coal, and asphaltite exploration, development and
production from prospective producing, development-stage and
exploration-stage properties in Colombia. The Company has acquired or
entered into agreements to acquire various interests in several
operating coal mines and projects, representing a substantive coal and
asphaltite exploration and production area throughout Colombia. Pacific
Coal is committed to implementing its exploration and development
strategy with a comprehensive environment, safety and community
program, meeting international standards of best practice.
Forward Looking Information:
This news release contains "forward-looking information", which may
include, but is not limited to, statements with respect to the future
financial or operating performance of the Company and its projects.
Often, but not always, forward-looking statements can be identified by
the use of words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
believes" or variations (including negative variations) of such words
and phrases, or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Pacific Coal to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Forward-looking statements
contained herein are made as of the date of this press release and
Pacific Coal disclaim, other than as required by law, any obligation to
update any forward-looking statements whether as a result of new
information, results, future events, circumstances, or if management's
estimates or opinions should change, or otherwise. There can be no
assurance that forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, the reader is cautioned
not to place undue reliance on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
SOURCE Pacific Coal Resources Ltd.
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