Cline Mining Corporation

Cline Mining Corporation

February 28, 2005 13:54 ET

Cline Reports 82.5 Million Tonne Coal Resource In Lodgepole NI 43-101 Report


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CLINE MINING CORPORATION

TSX VENTURE SYMBOL: CMK

FEBRUARY 28, 2005 - 13:54 ET

Cline Reports 82.5 Million Tonne Coal Resource In
Lodgepole NI 43-101 Report

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 28, 2005) - Cline
Mining Corporation (TSX VENTURE:CMK) is pleased to announce the results
of its recently completed Geology and Resources of the Lodgepole Coal
Property report, which updates resource calculations on the Lodgepole
property in accordance with NI 43-101 reporting standards.

The Report states that Lodgepole is a property of merit, containing 82.5
million in-place tonnes of Low volatile coal resource of immediate
interest. The resource, classified in the surface mineable deposit type,
is comprised of a measured resource of 49.6 million tonnes, an indicated
resource of 22.5 million tonnes, and an inferred resource of 10.4
million tonnes.

In accordance with National Instrument 43-101 GR Technical Services Ltd.
of Calgary, Alberta (GR Tech) utilized the referenced document
Geological Survey of Canada Paper 88-21 to identify, classify and report
coal resources on the Lodgepole Project.

The methodology included a review of the data files from the previous
operators, Crowsnest Resources/Shell Canada Ltd and Fording Coal
Limited. The data included interpretive maps of seam structure and
overburden thickness, lithologic and coal intercept files, seam coal
quality parameters and surface topography. In addition, hard-copy data
was used to verify the integrity of the digital database. The "hard
copy" data consists of geophysical logs and representative laboratory
coal quality reports.

Data from 36 historic drill holes and bulk samples from 4 adits were
reviewed. These holes have penetrated the mineable seams and contain
both thickness and structural data. The coal quality database consists
of seam data taken from core holes and adits. Trenches and older drill
holes provided structural and general stratigraphic information, however
seam thicknesses are based only on verifiable geophysical logs.

Drill-hole data and seam intercepts were entered into a database using
Mintec's Minesight software by GR Tech in order to produce a Gridded
Seam Model (GSM) of the deposit. Several data verification procedures
were utilized in order to verify the integrity of the drill-hole
database. The drill holes were posted to the digital topographic file to
validate locations and surface elevations. Seam thickness, correlation
and structural positions were validated through inspection of the
geophysical logs of the drill holes. GR Tech created a digital geologic
model of the area using the Mintec Minesight software. The computer
model consists of a series of surface models for topography and seam
structure. A minimum mining thickness of .3 meters was used for coal and
rock partings. Twelve coal zones exist within the boundaries of the mine
plan; GR Tech has created a geologic computer model, addressing the
seams of interest in this study. Coal quality parameters for the seams
were evaluated by hand, outside the computer model. The drill-hole
locations were surveyed, and a number of independent laboratories have
previously analyzed drill-core. GR Tech is of the opinion that the
spacing of coal quality data available for the seams is adequate for
characterization of the in-place quality in this study. The computer
generated Mintec model was used for the volumetric calculation and these
volumes were converted to tonnage by the application of a density values
recommended for use in GSC Paper 88-21. The in-place surface mineable
resources were estimated at a cut off stripping ratio of 6 Bank Cubic
Meters of waste per Bank Cubic Meter of In Place Raw Coal. The cut-off
ratio for this resource is considerably less than the specified maximum,
of GSC 88-21. In GR Tech's opinion, the resource estimate meets current
NI 43-101 standards.


Lodgepole Property In Place Raw Coal Resource Summary



----------------------------------------------------------------
Deposit Type Measured Indicated Inferred
(Millions (Millions (Millions
of tonnes) of tonnes) of tonnes)
----------------------------------------------------------------
Surface 49.6 22.5 10.4
----------------------------------------------------------------


The coal resources stated in the tables above are not reserves and, in
the absence of a current feasibility study, do not have demonstrated
economic viability. The determination of coal resources can be affected
by various factors including environmental, permitting, legal and title,
socio economic, marketing or other issues. Cline Mining is not aware of
any current substantive issues that would materially affect any resource
estimate of the Lodgepole Project. The Lodgepole Area covers
coal-bearing Kootenay Formation strata in the Rocky Mountains of
southeastern British Columbia. The property is located about 33
kilometres by road southwest of Elk Valley Coal Corporation's Coal
Mountain Mine and of 42 kilometres by road from CP rails siding at
Morrissey, which is 15 kilometers south of Fernie, British Columbia.
Based on the information made available from this report, GR Tech has
recommended that Cline Mining complete a 51-hole drill program and adit
/ bulk sample program to assess the coal quality further. In addition,
the report recommends proceeding with a feasibility study and mine plan.
Mr. James H. Gray P.Eng., President of GR technical Services Lt., who is
an Independent Qualified person as required by NI 43-101, supervised the
preparation of the report.


Cline Mining Corporation

"Ken Bates"

Ken Bates, President

Not for distribution to U.S. Newswire services or for dissemination in
the United States. This press release was prepared by management who
takes full responsibility for its contents.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Cline Mining Corporation
    Ken Bates
    President
    (416) 243-7384 or Cell: (416) 830-0709
    (416) 242-6384 (FAX)
    or
    Cline Mining Corporation
    Allan Taylor
    Secretary-Treasurer
    (705) 560-8100
    (705) 560-8521 (FAX)
    or
    Cline Mining Corporation
    Head Office
    530 Lasalle Boulevard
    Sudbury, Ontario P3A 1W9
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.