Cline Mining Corporation

Cline Mining Corporation

September 22, 2005 14:24 ET

Cline Mining Update-Mine Developments

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 22, 2005) -

Not for distribution to U.S. newswire services or for dissemination in the United States.

Cline Mining Corporation (TSX:CMK) reports on the status of its mine developments and related activities to date.

The Company is currently bringing two metallurgical steel making coal mine projects into commercial production in British Columbia, Canada. The Lossan Coal Mine project is located in the Northeastern British Columbia Coalfield and the Lodgepole Coal Mine project is in the Crows Nest Pass Coalfield of Southeastern British Columbia. Both coal mine developments are on planned schedule with first mining to commence in the first Quarter of 2006.

The field programs on both projects were successfully completed on schedule during the second Quarter this year, providing the final detailed information to meet environmental and feasibility requirements to bring both mines into commercial production. Drilling, bulk sampling of coal from adits driven into the coal seams, detailed pilot plant tests, analysis and assessment of coal qualities for steel making are completed. Mine planning, process plant design and designs for coal loadout to rail are being finalized and will be compiled into separate Reports to be issued in November, as planned.

The results from both the Lossan and Lodgepole coal mine projects confirms the coals to be suitable for steel making purposes producing Pulverized Coal Injection (PCI) as well as coking coal grades, with excellent blending attributes and qualities.

The November Reports will provide for each of the Lodgepole and Lossan coal mines to be brought into initial coal production at 250,000 tonnes a year increasing to 1.0 million tonnes of coal annually. Lodgepole will be further increased to a 2 million tonne per year production level in planned increments. The total Canadian NI 43-101 coal Resource Classifications by Norwest Corporation and GR Technical Services for both mines reports 102.6 million tonnes of coal in place. First mining is scheduled at the end of the first Quarter of 2006 for the Lossan mine.

A three dimensional block computer model for the Lossan Coal Mine has been completed by Norwest Corporation. Initially, the coal will be mined selectively to produce a low ash PCI or Met coal for direct shipping. A modular 1 million tonne per year product coal process designed by Norwest wash plant engineers and will be constructed to fully utilize the present 20 million tonne NI 43-101 coal resource at Lossan. The Lossan coal processing plant and rail loadout facility is to be located adjacent to the Canadian National Rail line in the Pine River Valley on a site to be provided by the British Columbia Government on a proposed 'joint use' arrangement with Western Canadian Coal. Product coal quality specifications of the project, based on analytical, washing and carbonization testing are being finalized. Rescan Environmental Services, the Company's Lossan environmental consultant, has completed the requisite formal "Project Description" for Lossan which is posted on the Company website.

The Lodgepole Coal mine plan has been prepared for the Company by G R Technical Services of Calgary. The coal mine will produce a low volatile Pulverized Coal Injection (PCI) coal product for use in the production of steel. A 1 million tonne per year product coal plant has been designed by A.D. Walters & Associates based on the present 82.5 million tonne NI 43-101 coal resource at Lodgepole. The Lodgepole coal resource is sufficient to support a coal production rate of 2 millions tonnes annually. The present plant design is planned to efficiently accommodate an increase to this production level. The advantageous 'down dip' mining configuration attitude of the coal seams and surface contours will allow for long-term mining at low strip ratios at Lodgepole.

The Lodgepole mine area will be on the northern side of McLatchie Ridge from where the raw coal will be transported to the coal processing plant on the southern side of the ridge. There will be no tailings pond in the Lodgepole Mine development. The coal plant will produce "dry tailings" only which very significantly enhances the environmental and visual considerations.

EBA, the Company's Lodgepole environmental consultant, has completed a formal "Public Disclosure" document which is posted on the Company's website. A requisite formal "Project Description" has been received from EBA which will also be placed on the Company website.

Product coal quality determinations for both the Lossan and Lodgepole coal mine properties were carried out in collaboration with Khan & Associates and included various Carbonization Tests by the Canmet (Federal Government.) Research Laboratory in Ottawa.

Cline Mining has joined the Ridley Shippers Coalition which has been formed by the principal coal mines and developers in the Northeast Area of British Columbia, Canada. The Ridley Shippers Coalition consortium is in discussions to acquire the Ridley Terminal Inc. bulk coal terminal located at Prince Rupert on the Pacific coast, British Columbia from the Canadian Government. The Ridley Terminal is a major bulk coal shipping facility with a capacity to load for export 16 million tonnes of coal annually into vessels of up to 240,000 dwt. The Terminal will primarily serve the coal mines of Northeastern British Columbia to which it is connected by unit train service.

In other Canadian coal activities, the Company has submitted an exploration program on its Crown Mountain coal mine project which is located adjacent to the Elk Valley Partnership's (Teck-Fording) Elkview Mine in Southeastern British Columbia. Cline has recently increased its property holdings at Crown Mountain. Crown Mountain coal is a medium volatile metallurgical type coal suitable for steel making applications. The British Columbia Ministry of Energy & Mines reports, from early reconnaissance and work, in-place coal resources presently in the order of 4.6 million tonnes (Non NI 43-101 compliant). Crown Mountain has significant potential for additional coal resources. Three coal seams have been identified within the Crown Mountain Coal Licence Application area ranging in total aggregate thickness between 14.4 to 30.1 meters. The coal seams at Crown Mountain are found in the Mist Mountain (Kootenay Group) strata which host all current production in the region. Other important quality characteristics of Crown Mountain reported by government include Volatile Matter at 20.8-23.6%; Ash content at 17.5-19.5%; Fixed Carbon at 49.7-56.5% and Sulphur at 0.23-0.26%. The Company will review economic and quality synergies between its Crown Mountain and Lodgepole coal projects.

The Company owns the Bekisopa Iron Ore property in Madagascar and is evaluating iron ore and related development opportunities at the instance of and in conjunction with its strategic partners in the steel industry. Bekisopa has an extensive Data Base of earlier exploration and test work prepared separately by BRGM, the French Government exploration company, the United Nations (Development Program) and the Government of Madagascar. Bekisopa covers an area of 25 square kilometres. The Data Base reports the iron formations as being primarily magnetite with iron grades across the deposit at between 25 per cent and 65 per cent (density 2.5 to 4.75) averaging 45 per cent. The Data reports the elluvial lateritic surface part of the deposit reported at grades of between 40 per cent and 65 per cent iron. Additional details of the Bekisopa data base are posted on the Cline website.

The Company owns the Cline Lake Gold Mine property near Wawa, Ontario, Canada; an earlier days gold producer. More recent work, including 50,000 feet of drilling, identified four areas on the property with economic potential. The Company announced some time ago that it considered it prudent to carry out a modest program to seek to enhance the opportunity and determine how best to maximize shareholder values in the property. Accordingly, a 2500 foot drill program (two holes) has been commissioned to extend the existing drill data to below Cline Lake and prepare a NI 43-101 evaluation. Further details on the Cline Lake Gold Mine property are available on the Company website.

Cline Mining Corporation is a mine development company focused on the exploration and development of metallurgical coal in Canada for the international seaborne coal trade market. The Company website is at Shares of the company trade on the Toronto Stock Exchange under the symbol CMK.

Cline Mining Corporation

"Ken Bates"

Ken Bates, President and Chief Executive Officer

Head Office Vancouver Office
530 Lasalle Boulevard 650 West Georgia Street
Sudbury, Ontario Suite 2950, P.O. Box 11578
P3A 1W9 Vancouver, B.C.
V6B 4N8

Contact Information

  • Cline Mining Corporation
    Ken Bates
    (416) 830-0709
    Cline Mining Corporation
    Allan Taylor
    (705) 560-8100
    (705) 560-8521 (FAX)
    Cline Mining Corporation
    Gordon Gormley
    (604) 687-7789
    (604) 687-7765 (FAX)
    Bay Street Connect
    Investor Relations
    (416) 569-7092