TORONTO, May 14, 2012 /CNW/ - New Elk Coal Company LLC (the "Company"), a wholly owned subsidiary of Cline Mining Corporation ("Cline") (TSX:CMK) has entered into an Agreement with the Department of Wildlife of the State of Colorado ("DOW") significantly extending its present DOW coal mining property area at its New Elk coal mine in Las Animas County, southern Colorado.
The initial New Elk DOW coal mine lease covers an area of 15,553 acres, and the extension area will add a further 14,387 contiguous acres to the initial DOW lease, resulting in a new total coal lease property area of 29,940 acres.
The extended lease area is coal bearing and the Company has commissioned AGAPITO Associates Inc. to prepare a National Instrument 43 101 Report of coal resources on the extended area. A resource report is expected by May 24, 2012 with the full report to be published within the regulatory 45 day period.
The initial DOW lease area contains 330.3 million tons of coal resources out of the total of 388.5 million tons of coal resources on all of the New Elk property, as reported in the updated National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") report titled "NI 43-101 Technical Report, New Elk Mine Project, Los Animas County Colorado, USA Prepared for New Elk Coal Company LLC, subsidiary of Cline Mining Corporation" dated May 27, 2011 (the "2011 Technical Report") by AGAPITO Associates Inc.
Dennis Z. Mraz, P.Eng. a qualified person under NI 43-101 has reviewed and approved the technical information in this news release.
About Cline: Cline has significant metallurgical coal property interests in North America with NI 43-101 compliant independent Technical Reports. Cline Mining Corporation is a mine development company focused on the exploration and development of metallurgical steel making coals in North America, iron ore in Madagascar and the Cline Lake Gold Mine Property in northern Ontario, Canada.
CLINE MINING CORPORATION
Ken Bates, President and Chief Executive Officer
This news release may contain 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, mineral resource estimates in that it reflects a prediction of the mineralization that would be encountered if a mineral deposit were developed and mined. 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 information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. 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. More detailed risks are set forth in other public filings of the Company which may be accessed on the Company's profile page at www.sedar.com. Consequently, undue reliance should not be placed on such forward-looking statements. In addition, all forward-looking statements in this news 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.
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