Grande Cache Coal Corporation
TSX : GCE

Grande Cache Coal Corporation

October 03, 2005 16:23 ET

Grande Cache Coal Corporation Provides an Update on Operations, Announces Sales Volume for the Second Quarter and Announces a Management Change

CALGARY, ALBERTA--(CCNMatthews - Oct. 3, 2005) - Grande Cache Coal Corporation (TSX:GCE) is pleased to announce sales volume for the quarter ended September 30, 2005 and to provide an update on the status of operations.

Consistent with expectations, Grande Cache Coal Corporation ("Grande Cache Coal" or the "Corporation") had sales volumes of 0.4 million tonnes in the quarter ended September 30, 2005. Sales schedules have become more consistent as the year has progressed and efforts to diversify the Corporation's customer base have shown potential.

"Our underground mine will begin the depillaring phase of its operations during the fourth quarter, which will increase production levels from the mine" said Robert Stan, President and Chief Executive Officer. "The roof bolter that was ordered last year and was scheduled for delivery in May has now been further delayed until November. This has affected the speed with which we reach the depillaring phase but the unit costs for the underground mine have been satisfactory."

Waste movement and coal mined in the surface mine showed considerable improvement in the month of September over prior periods. As we move forward in our mining plan, the strip ratio is declining and will continue to decrease through the last half of the year allowing coal production to increase. Due to the volume based nature of mining operations, with this improved rate of coal release and increased production, unit costs are expected to decrease.

"The Corporation continues to work closely with the surface mine contractors to increase productivity and reduce unit costs," Mr. Stan remarked. "We continue to work together with our contractors to achieve reasonable cost levels and based on the recent results, significant progress has been made."

Grande Cache Coal remains committed to achieving a long term cost of operation that is comparable with similar mining operations. To that end, any expansion plans or new mining opportunities will be carefully examined before moving forward. Recent movements in the Canadian/U.S. exchange rates and continuing high energy and material costs have encouraged us to take a close look at our expansion plans to ensure that we move into new mining areas at the optimal time based on an appropriate long term mine plan.

With the completion of the majority of the project development work in the surface and underground mines, Grande Cache Coal also announces that Eugene Wusaty, Vice President Operations and Chief Operating Officer has left the Corporation as of September 30, 2005. David Passfield, General Manager Grande Cache Operations will assume responsibility for long range planning and the regulatory approvals process. Mr. Wusaty will be available in an advisory capacity to work with Mr. Passfield through a transition period.


The Corporation anticipates the release of second quarter financial results following the close of business on November 9, 2005, to be followed by a conference call to discuss the financial results and status of operations on November 10, 2005. Further details on the conference call will be released closer to that date.

Grande Cache Coal 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 Coal's coal leases covering over 15,000 hectares in the Smoky River Coalfield located in west-central Alberta. Grande Cache Coal's common shares are listed on the Toronto Stock Exchange under the trading symbol "GCE".

This news release contains certain 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. Some of the forward-looking statements may be identified by words such as "expects", "anticipates", "believes", "projects", "plans" and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Grande Cache Coal's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, changes in general economic, market and business conditions; uncertainties associated with estimating the quantity and quality of coal reserves and resources; commodity prices, currency exchange rates, capital expenditures and debt service requirements; dependence on a single rail system; changes to legislation; liabilities inherent in coal mine development and production; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; geological, mining and processing technical problems; ability to obtain required mine licenses, mine permits and regulatory approvals required to proceed with mining and coal processing operations; ability to comply with current and future environmental and other laws; actions by governmental or regulatory authorities including increasing taxes and changes in other regulations; and the occurrence of unexpected events involved in coal mine development and production. Many of these risks and uncertainties are described in Grande Cache Coal's 2005 Annual Information Form, Grande Cache Coal's Management's Discussion and Analysis and other documents Grande Cache Coal files with the Canadian securities authorities. Copies of these documents are available without charge from Grande Cache Coal or may be accessed on Grande Cache Coal's website (www.gccoal.com) or on the website maintained by the Canadian securities regulatory authorities (www.sedar.com).

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

Contact Information

  • Grande Cache Coal Corporation
    Rhonda M. Bennetto
    Director, Investor & Corporate Relations
    (403) 543-7070
    (403) 543-7092 (FAX)
    Website: www.gccoal.com