Positive preliminary assessment report on Raven Coal deposit


    VANCOUVER, Sept. 5 /CNW/ - Compliance Energy Corporation (the "Company")
announces that its recently completed preliminary assessment report on the
Raven Coal deposit concludes that a proposed underground mine producing
823,000 clean tonnes per year of high volatile metallurgical coal results in a
life of mine average profit of $30.62 per clean tonne of coal and a life of
mine annual excess of income over expenditures of $25.2 million. The estimated
net present value of the project at a constant dollar discount rate of 12% is
$106.8 million. Associated Geosciences Ltd. of Calgary ("AGL") studied two
production cases: one producing 823,000 tonnes of high volatile metallurgical
coal per year and another producing 1,440,000 tonnes of thermal coal per year.
Based on these studies AGL believes that the Raven Property warrants
additional exploration and a feasibility study to form the basis of a
production decision.
    Earlier this year Compliance engaged AGL to prepare a preliminary
assessment of the Company's Raven Coal deposit. The Raven Deposit is located
in the Comox Coal Basin and encompasses approximately 7,660 acres of a total
of 82,000 acres that CEC has under option on Vancouver Island, British
Columbia. The Raven property is located approximately 20 kilometers to the
south east of Courtenay on Vancouver Island with the island highway, rail and
power within 2 kilometers from the site. The report which is titled
"Preliminary Assessment of an Underground Mining Operation on Compliance
Energy Corporation's Raven Coal Deposit" ("Preliminary Assessment") will be
filed on SEDAR.
    AGL cautions that the Preliminary Assessment is based on a mine life that
exceeds the measured and indicated resource figures and includes approximately
8 million tonnes (13%) of a total of 59 million tonnes of inferred resources.
However based on the seam continuity demonstrated by seismic data, AGL is
confident that additional exploration will prove sufficient coal resources
exist on the property. Although a considerable amount of sampling and
washability testing has been conducted on coal from the property, additional
testing is recommended to gain a thorough understanding of the variation of
coal quality within the main seam and throughout the area.
    AGL recommends that further core drilling should be conducted in the area
planned for initial years of mining with additional infill drilling for the
life of mine plan. They also recommend that additional coal quality work be
conducted to understand a) the liberation characteristics of the middling
material; and b) the washability characteristics of the raw coal when crushed
to different top sizes. Finally, they believe that there is potential to
optimize the value of the project by considering alternate adit locations to
gain access to the main seam for development.
    The key assumptions in determining the preliminary financial assessment
are shown in Table 1.

    Table 1: Key Assumptions for Determining Preliminary Financial Assessment

                                                Metallurgical   Thermal Coal
                                              Coal Production     Production
    Life of Mine (years)                                   20             20
    Annual Raw Coal Production (tonnes)             2,211,000      2,211,000
    Coal Processing Plant Recovery                        40%            70%
    Clean Coal Production (tonnes)                    823,000      1,440,000
    Production costs per clean tonne
     FOB Port (Can$)                             $      79.91   $      52.12
    Revenue Per Clean Tonne (US$)                $     105.00   $      61.00
    Exchange rate                                        0.95           0.95
    Revenue Per Clean Tonne (Can$)               $     110.53   $      64.21
    Capital Cost of Mine and Port
     Infrastructure (Millions $)(1)              $       48.3   $       48.3
    (1) Capital Cost estimate excludes Interest During Construction

    As previously outlined in The NI 43-101 "Technical Report Raven Coal
Property" filed with SEDAR on June 12, 2007, the Raven coal deposit holds
39,093,000 tonnes of measured and indicated and 59,004,000 tonnes of inferred
underground coal resources as outlined in Table 2 below.

              Table 2: In Situ Coal Resources for Raven Project

                                                    In Situ Coal Resources
                                           Coal          (kilotonnes)
                             ASTM Rank     Zone/  ---------------------------
      Area   Deposit Type Classification   Seam   Measured Indicated Inferred
    Raven                                 Seam 1    12,917    19,892   56,424
     Coal                 high volatile A -----------------------------------
     Project                 bituminous   Seam 3
    T'Sable  Underground                   Upper     1,754     4,430    2,580
     River                ---------------------------------------------------
     Coal                                             Measured and   Inferred
     Field                         Totals               Indicated
    Comox                                         ---------------------------
     Basin                                               39,093        59,004

    AGL's Preliminary Assessment was prepared by Peter Cain Ph.D., P.Eng. and
Alan Craven P.Eng. who are the Independent Qualified Persons for reporting
purposes as defined in NI 43-101 Standards of Disclosure for Mineral Projects.
Dr. Cain and Mr. Craven have reviewed and approved the technical content of
this news release.
    The Preliminary Assessment is preliminary in nature and includes inferred
coal resources that are considered too speculative geologically to have
economic considerations applied to them that would enable them to be
categorized as coal reserves and there is no certainty that the Preliminary
Assessment will be realized. Coal resources that are not coal reserves do not
have demonstrated economic viability.

    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
    John Tapics
    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.

    %SEDAR: 00014871E

For further information:

For further information: Rob Roney, Investor Relations, at (250)
897-0437; or Rod Shier, CFO, at (604) 689-0489

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