Grande Cache Coal Corporation

Grande Cache Coal Corporation

March 24, 2009 19:12 ET

Grande Cache Coal Corporation to Seek Regulatory Approval for the No. 12 South B2 Underground Mine

CALGARY, ALBERTA--(Marketwire - March 24, 2009) - Grande Cache Coal Corporation (TSX:GCE) ("Grande Cache Coal" or the "Company") announced today that it intends to seek regulatory approval for the No. 12 South B2 Underground Mine. The purpose of this mine is to provide a successor mine to the Company's present No. 7 Underground Mine. As the proposed underground mine will be a multi-seam operation that starts at the highwall of the present No. 12 South B2 Surface Mine, it will require no additional surface disturbance or changes to the existing haul road. Subject to receipt of the required regulatory approvals, the Company will be prepared to start site preparation for surface portals in early 2010.

The No. 12 South B2 Underground Mine will require an amendment of a mine permit currently held by the Company, an Energy Resources Conservation Board Mine Licence, and an amendment by Alberta Environment of an Environmental Protection and Enhancement Act Approval currently held by the Company.

"The new mine will be a successor mine to our current No. 7 Underground Mine and provide continuity for our underground workforce and the community" said Robert Stan, President and Chief Executive Officer of Grande Cache Coal. "Our company has made a significant investment in underground mining expertise, training and equipment and has gained operational experience at the No. 7 Mine that will carry over into the new No. 12 South B2 Underground Mine. Current world pricing and demand for export metallurgical coal is depressed, however, our company must prepare for the future and secure mining approvals so that production can be increased as world markets recover."

Grande Cache Coal intends to file a National Instrument 43-101 statement of resources and reserves in support of the No. 12 South B2 Underground Mine project with its annual information form for the fiscal year ended March 31, 2009.

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. Grande Cache Coal's common shares are listed on the Toronto Stock Exchange under the trading symbol "GCE".

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
    Ian Bootle
    Vice President, Finance and Chief Financial Officer
    (403) 543-7070
    (403) 543-7092 (FAX)