Cline Mining New Elk Coal Mine Development


    TORONTO, June 16 /CNW/ - Cline Mining Corporation ("Cline" or the
"Company) (TSX:CMK) announces that the mine re-opening, plant and site
refurbishment and development to commercial production of its New Elk
metallurgical coal mine located in southern Colorado, U.S.A. continues to
proceed as planned. The requisite ongoing approvals and authorizations for the
present important mine re-opening phase are issued as required, and the
Company's operational activities are monitored on site, at this stage, by the
Colorado Mine Safety and Health Administration (MSHA).
    The Company has now opened both the east and west mine ventilation air
shafts located at the east and west Mine Portal accesses to the New Elk Coal
Mine and has completed the installation of the Ventilation Fans which are
confirmed as operative. The Air Shafts are adjacent to the east and west mine
portal ramp accesses into the mine, and located about 1.5 kilometers apart on
the coal seams. The opening of the mine air ventilation shafts and
installation and testing of the Ventilation Fan system was carried out by the
Company with the requisite MSHA approval and on-site supervision. Completion
of the dewatering process at the eastern portal area, breaking of the seals to
both portals and ventilation of the complete mine to fully compliant air
quality mining operational standards is expected to be achieved this month.
    As previously reported, the New Elk mine is designated an `Active' coal
mine and full regulatory compliance is strictly observed in all operations and
activities. The completion of Phase I and full miner access to the mine had
previously been anticipated to occur during May and is now scheduled for June;
the delay being due to extra diligence and time taken to ensure regulatory
compliance requirements. Upon completion of Phase I New Elk will enter and
inspect the mine, roadways and coal seams, confirm conditions, the mine plan
and 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.
    New photographs of the mine surface installations, plant site and
infrastructures and the Phase I work can be seen on the Company's website at
    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
    Cline continues with its plan 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. The management plan is to recommence initial coal
production in 2009 at the annual rate of 500,000 tons of coal following
completion of Phase I. The plan is to utilize as much of the existing
infrastructure as possible, this includes refurbishment of the existing mine
equipment, including the underground coal haulage rail system, and
re-installation of new in-mine coal conveyors and the mine electric power
system. Refurbishment of the surface coal plant will be a part of the work to
bring the mine back into full commercial production. 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 U.S. coasts
to reach the global sea-borne trade. The initial coal production tonnage and
sales will be delivered to market in trucks to the BNR rail head; the
production and sales plan calls for the increase to the present plant design
capacity to 3 million tons a year by year three with the re-installation by
New Elk Coal of the rail line to the major railroad carriers from the coal
plant to provide unit train service from the existing New Elk mine load-out.
    Cline is presently in discussions with financial institutions and
financially interested groups with a view to raising 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
    The New Elk Coal coal 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 and on SEDAR at

    About Cline Mining

    In addition to New Elk Coal, Cline has significant additional
metallurgical coal property interests in British Columbia, Canada with
NI43-101 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.

    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 2008 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 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:,

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