First Coal Corporation

First Coal Corporation

October 13, 2009 09:00 ET

First Coal Begins Strategic Investment Review

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 13, 2009) - First Coal Corporation (First Coal), a private Canadian company exploring and developing coal resources in northeastern British Columbia, is preparing for a strategic investment review as a result of receiving unsolicited expressions of interest in the Company. The review will permit an orderly and thorough process within which the Company may properly evaluate opportunities available to it and its shareholders. The Company intends to retain financial advisors to assist in developing its corporate investment strategy.

The Company has more than 90,000 hectares (357 square miles) under tenure licence or under application for licence in the Peace River Coalfield near Chetwynd, in northeastern BC. Historic resources are estimated at 1.6 billion tonnes of primarily metallurgical coal. First Coal has chosen to begin production on its Central South property. This property is typical of the region and characterized by steeply dipping coal seams. Its measured, indicated and inferred resources identified to date are in excess of 78 million tonnes of medium volatile coking and PCI coals.

First Coal has developed an innovative mining technique for its Central South property that involves the use of the ADDCAR Any Dip Highwall Mining System to extract coal from the highwalls of excavated trenches in a manner that causes minimal surface disturbance and provides a low strip ratio. First Coal will be the first in the world to mine steeply dipping coal seams using this technique. The Company plans to begin extraction of its bulk sample in the fourth quarter of 2009 (subject to receipt of ancillary permits). A Small Mine Permit Application will be submitted to the BC Government shortly which, once approved, would allow the Company to commence production at an annualized rate of 245,000 tonnes of clean coal. Planned startup is late in 2010 or early 2011. It is anticipated that production will, subject to the required permitting and financing, gradually increase to 3 million tonnes annually from this resource.

Contact Information

  • First Coal Corporation
    Douglas H. Smith
    President and CEO
    604-605-8811
    604-605-8822 (FAX)
    dsmith@firstcoal.com
    or
    Peak Communicators
    Linda Munro
    604-689-5559 or Cell: 778-839-9649
    lmunro@peakco.com
    or
    Peak Communicators
    Alyn Edwards
    604-689-5559