Grande Cache Coal Corporation

Grande Cache Coal Corporation

July 31, 2008 08:30 ET

Grande Cache Coal Corporation to File Application for Regulatory Approval to Re-Establish Surface Mining Operations in the No. 12 South A Mine Area

CALGARY, ALBERTA--(Marketwire - July 31, 2008) - Grande Cache Coal Corporation (TSX:GCE) ("Grande Cache Coal" or "the Corporation") announced today that it intends to file an application in August 2008 for regulatory approval to re-establish surface coal mining operations in a portion of the designated No. 12 South Mine area where the Corporation holds coal leases. The Corporation identifies this area as the "No. 12 South A (Phase 1) Mine", which was initially mined by a previous operator to an economic limit and not reclaimed.

The No. 12 South Mine area, which encompasses the No. 12 Mine South A (Phase 1) project area, was estimated by AMEC Americas Ltd. in 2007 to contain 26.7 million tonnes of measured coal resources. The Corporation has identified 3.6 million tonnes of the coal resource as "recoverable" during the first four years of Phase 1 mining of the No. 12 South A project area.

Grande Cache Coal intends to recover the intact deeper seams of metallurgical coal within the footprint of the original mine, which is justified by the market opportunity presented by current export coal prices. The No. 12 South A (Phase 1) Mine will be a truck-and-shovel operation, similar to current surface mining on the property. The No. 12 South A (Phase 1) is adjacent to the Corporation's current operations at the No. 12 South B2 Mine. Mining infrastructure, notably haul road, mine shop and water management structures, are in place to facilitate an efficient transition to No. 12 South A (Phase 1) area. The No. 12 South A (Phase 1) Mine will complement the Corporation's current operations and assist the Corporation in responding to exceptional market opportunities.

The Corporation intends to commence mining operations immediately upon receipt of the necessary regulatory approvals which consist of the issuance by the Alberta Energy Resources Conservation Board of an amendment to the Corporation's Mine Permit C2003-1A and a Mine Licence and the issuance by Alberta Environment of an amendment to the Corporation's Environmental Protection and Enhancement Act Approval No. 155804-00-02.

Grande Cache Coal is an Alberta based metallurgical coal mining company whose experienced team of coal professionals are managing a mine that produces metallurgical coal for the steel industry and holds coal leases covering over 22,000 hectares in the Smoky River Coalfield located in west-central Alberta.

This news release contains forward-looking statements, which are based on Grande Cache Coal's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. The forward-looking statements are not guarantees of future performance and undue reliance should not be placed on them. Actual results may differ materially as a result of any number of factors and uncertainties, many of which factors are beyond the Corporation's control. Many of these risks and uncertainties are described in Grande Cache Coal's 2008 annual information form, Grande Cache Coal's management's discussion and analysis and other documents Grande Cache Coal files with the Canadian securities authorities. Grande Cache Coal undertakes no obligation to update or revise any forward-looking statements except as required by applicable securities laws.

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

Contact Information

  • Grande Cache Coal Corporation
    Anita L. Roncin
    Vice President, Finance and Chief Financial Officer
    (403) 543-7070
    (403) 543-7092 (FAX)