Grande Cache Coal Corporation
TSX : GCE

Grande Cache Coal Corporation

June 30, 2005 08:30 ET

Grande Cache Coal Corporation Files Independent Technical Report Increasing the Reserves for the No. 8 Mine Area and Files Documents in Respect of its Fiscal Year Ended March 31, 2005

CALGARY, ALBERTA--(CCNMatthews - June 30, 2005) - Grande Cache Coal Corporation (TSX:GCE) ("Grande Cache" or the "Company") is pleased to announce that it has filed an updated independent technical report (the "Technical Report") prepared by AMEC Americas Limited quantifying the coal reserves and resources for the No. 8 surface mine area as mandated by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). The Company had the Technical Report prepared for the No. 8 mine area to incorporate the successful results of its winter drilling program, which resulted in the recoverable coal reserves in the No. 8 mine area increasing to 13.2 million tonnes from 7.6 million tonnes and the saleable coal reserves increasing to 9.6 million tonnes from 5.7 million tonnes.

A total of 20.4 million tonnes of measured and indicated coal resources have been identified in the No. 8 mine area, which includes total recoverable coal reserves of 13.2 million tonnes. There is also an additional inferred coal resource of 20.3 million tonnes in the No. 8 mine area identified in the Technical Report.

The Company anticipates that the No. 8 mine will be the next surface mining area at its Grande Cache operation. It is expected that the final operating license for this mining area will be received within the current calendar year and that pre-strip activities will commence immediately following receipt of such licence. The Company has entered into letters of intent to purchase an electric mining shovel and an electric drill, and the procurement of haul trucks, loaders, dozers and other support equipment is ongoing.

The Company also announced today that it has filed its audited consolidated financial statements for its fiscal year ended March 31, 2005 and related management's discussion and analysis and its annual information form for its fiscal year ended March 31, 2005 with Canadian security regulatory authorities.

Copies of the Technical Report and the foregoing continuous disclosure documents are available at www.sedar.com and the Company's website at www.gccoal.com.

Grande Cache is an Alberta based metallurgical coal mining company whose experienced team of coal professionals is developing a long-term mining operation to produce metallurgical coal for the export market from Grande Cache's coal leases covering over 15,000 hectares in the Smoky River Coalfield located in west-central Alberta. Grande Cache's common shares are listed on the Toronto Stock Exchange under the trading symbol "GCE".

This news release contains forward-looking statements. 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 Company's control. Many of these risks and uncertainties are described in Grande Cache's 2005 annual information form, Grande Cache's management's discussion and analysis and other documents Grande Cache files with the Canadian securities authorities.

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

Contact Information

  • Grande Cache Coal Corporation
    Rhonda M. Bennetto
    Director, Investor and Corporate Relations
    (403) 705-3803
    or
    Grande Cache Coal Corporation
    Suite 1610, 800 - 5th Avenue S.W.
    Calgary, Alberta T2P 3T6
    (403) 705-3803
    (403) 543-7092 (FAX)
    Website: www.gccoal.com