Further Coal intersections at Raven
News from CNW Group
Further Coal intersections at Comox JV's Raven Coal Project
11:52 EDT Tuesday, August 04, 2009
TSX-V TRADING SYMBOL: CEC
VANCOUVER, Aug. 4/CNW/ - Compliance Energy Corporation (the "Company" or "Compliance")is pleased to provide a further update on its activities at the RavenUnderground Coal Project onVancouverIsland, BC. Drilling continues to intersect Seam No.1 and Seam No. 3 inareas where resources were previously categorized as inferred. Theresults from the latest twelve holes, when combined with the previoustwenty holes that were reported onJuly 09, 2009, will allow a significant portion of the previously reported inferredresources (59 million tonnes) to be upgraded to either measured orindicated when the 43-101 reported resources are updated as part of thefeasibility study that is targeted for completion in the second quarterof 2010.
Drilling is progressing very well with a total of thirty two holesand 8044 meters completed to date. A summary of the additional drillingresults is provided in Table 1 "Coal Intersections - Depth andThickness in Meters" shown below and all the hole locations includingthose previously reported are shown on attached Figure 1 "Drill HoleLocation Map".
Seam No.3 was intersected in 11 of the 12 holes, while Seam No.1 wasintersected in 10 of the 12 holes as drill hole No.RAV-09-21 wasterminated short of Seam No.1 due to technical difficulties during thedrilling process. The Company plans to drill an additional hole in thisarea to verify the existence of Seam No.1 at this location.
In holes where the coal was of mineable thickness (1.5 meters orgreater), Seam No.1 averaged 2.79 meters and Seam No.3 averaged 2.22meters. In the 43-101 report issued in 2007, Seam No.1 averaged 2.8meters in thickness and Seam No.3, 1.5 meters in thickness. (Note: allthicknesses represent drill intersected thickness and have not beencorrected to true thickness).
The Company is extremely pleased with the drilling results to date.These results will allow the feasibility study to be completed on amuch larger resource than the current measured and indicated resourceof 39 million tonnes. Based on our current drilling progress, theCompany anticipates completing the program by mid to late August, whichwould be a full month ahead of schedule.
In addition to drilling activities, good progress is being made ongathering environmental baseline information in preparation for filingan environmental assessment application in the second quarter of 2010.Work on the feasibility study has also commenced with the initial focuson preliminary mine planning and transportation studies. Samples ofSeam No.1 and No. 3 have been taken for gas content and gascompositional analyses to assist in design of the mine ventilationsystem, and rock samples have been taken for geotechnical testing toassist in mine design. Preparations have also been made to begin pumptests for groundwater quantity and quality.
A summary of drilling results is as follows:
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Table 1 - Coal Intersections - Depth in Meters and Thickness in Meters
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Drill hole Seam 1 Seam 3/3U*
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Coal Intersection Depth Coal Intersection Depth
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Coal Seam Coal Seam
From To Thickness From To Thickness
(m) (m) (m) (m) (m) (m)
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RAV-09-016(1) 360.00 361.00 1.00 334.85 338.55 2.875/3.7(xx)
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RAV-09-019 367.60 370.00 2.40 342.05 343.90 1.85
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RAV-09-020 329.25 331.05 1.80 296.80 300.10 3.30
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RAV-09-021 Nd Nd Nd 357.65 359.60 1.70/1.95(xx)
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RAV-09-022 161.25 163.25 2.00 138.00 139.50 1.50
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RAV-09-023 186.50 187.80 1.30 137.68 139.50 1.82
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RAV-09-024 205.60 208.50 2.75/2.9(xx) 177.25 180.60 1.35/3.35(xx)
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RAV-09-025 Note: Lower Seams displaced by faulting
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RAV-09-026 69.10 70.80 1.55/1.7(xx) 22.85 25.35 2.50
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RAV-09-027 147.38 154.80 7.42 113.74 114.68 0.94
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RAV-09-030 65.15 66.75 1.60 36.20 37.35 1.15
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RAV-09-031 56.58 59.97 1.09/3.39(xx) 24.20 25.00 0.80
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Drill hole Seam 3L Seam 4
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Coal Intersection Depth Coal Intersection Depth
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Coal Seam Coal Seam
From To Thickness From To Thickness
(m) (m) (m) (m) (m) (m)
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RAV-09-016(1) - - - 298.00 299.40 1.15/1.4(xx)
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RAV-09-019 345.10 345.92 0.82 309.30 310.10 0.80
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RAV-09-020 - - - 261.00 261.80 0.80
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RAV-09-021 - - - 321.25 323.15 1.90
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RAV-09-022 140.75 141.75 1.00 119.85 120.75 0.90
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RAV-09-023 - - - 55.50 56.85 1.15/1.35(xx)
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RAV-09-024 - - - 145.75 146.95 1.20
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RAV-09-025 Note: Lower Seams displaced by faulting
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RAV-09-026 25.70 26.55 0.85 - - -
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RAV-09-027 - - - - -
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RAV-09-030 - - - - - -
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RAV-09-031 - - - - - -
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Note: * Where Seam 3U and 3L are not well defined the interval is
Seam 3 and is correlated with Seam 3U pending further study.
(xx) Coal seam thickness excluding partings/including partings
(1) No geophysical log for Seam 1. Intersections are from core
log.
Nd - Not determined. Hole aborted prior to intersecting Seam 1
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A basic geophysical logging suite of gamma, resistivity, caliper,density and deviation have been run on all holes with sonic, dip meter,acoustic televiewer, and neutron being run on selective holes. All coalintersections have been cored and sampled on a ply by ply basis and theinterpretation of the coal intersections presented in Table 1 aresubject to confirmation upon receipt of coal quality information. Thecore samples have been sent to Birtley Coal & Minerals TestingDivision of GWIL Industries inCalgary ,Alberta for coal quality analyses and washability testing. It isexpected that coal quality composite analyses and washability data willbe available in the fall of 2009. The drilling and coal quality programis under the supervision of Owen R. Cullingham, P. Geo., who is theIndependent Qualified Person for reporting purposes as defined in NI 43- 101 Standards of Disclosure for Mineral Projects.
Compliance Energy Corporation is a coal exploration and developmentcompany with an interest in over 75,000 acres of coal and mineralrights onVancouver Island BC and thatowns the Basin Coal Mine near Princeton BC. The company is currentlyfocused on developing the Raven Coal Project for the Comox JointVenture, of which it has a 60% interest. Company shares trade on theTSX Venture Exchange under the symbol CEC and investor information isavailable on the Company's web page atwww.complianceenergy.com.
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On behalf of the Board of
COMPLIANCE ENERGY CORPORATION
John Tapics
Chief Executive Officer
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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Note: This release contains forward-looking statements that involverisks and uncertainties. These statements may differ materially fromactual future events or results. Readers are referred to the documents,filed by the Company on SEDAR atwww.sedar.com, specifically the most recent reports which identify important riskfactors that could cause actual results to differ from those containedin the forward-looking statements. The Company undertakes no obligationto review or confirm analysts' expectations or estimates or to releasepublicly any revisions to any forward-looking statements.
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To view "Figure 1 - Drill Hole Location Map" please see the link below:
https://files.newswire.ca/812/Compliance_RavenCoal.pdf
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For further information: Greg Werbowski, Investor Relations or Rod Shier, CFO at (604) 689-0489
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