RE: RE: Logic is logicOne positive is that this is very quite on these boards and companies usually have a nice pop as soon as there is news of cash flow. Oh and by the way most of their current capital spending to initiate production is done and they are not in debt up to their eyebrows. Might i add the roughly 9 million they have at the bank!
Most of their spending is done? All they have completed is pumping out the mine, installed new doors on one of the access and are installing a ventillation fan. The mine was flooded / sealed and the equipment needs to rehabilitated once they confirm which of it they can in fact re-use and which they need to replace. They need to install new electrics, conveyors, and refurbish the plant. Also, there
Also as per the latest MD&A
The Company has existing commitments at February 28, 2009 of approximately $4.3 million, the most significant portion of which represents a US$2.7 million reclamation bond for a portion of its New Elk property. The reclamation bond is secured through a cash deposit with a commercial bank and as such, this cash is not available for operational and corporate spending; representing restricted cash.
$4.3 million is a pretty good sized chunk of that cash.
As per the New Wlk 43-101 technical report: So how much of the following from the report has been completed?
Development plans for the property should be expanded to include consideration of thearea adjacent to the mine and in the two major seams (Apache and Maxwell) immediately
overlying the Allen Coal seam.
o The mine should be pumped dry to allow access to the existing works to determine theircondition and to permit the taking of bulk samples for initial coal testing.
o The preparation plant should be upgraded and modernized to take care of excess coalfines and to permit reprocessing of the current coal wastes.
o A drilling and coring program should be undertaken to confirm the existing drill resultsand to secure sufficient coal samples to conduct modern coal testing. Samples should
also be taken to identify geotechnical considerations to be including in any mine planning
effort. Hydrological testing should also be conducted as part of any drilling and core
testing program. Although the cost of this drilling program will ultimately be dependent
upon the scope of the drilling and the nature of the coal and geotechnical testing, it
should fall within the range of $250,000 and $500,000.
o A pre-feasibility study should be undertaken based upon the expanded development planthat incorporates the newer drilling, as well as existing information. Part of this study
should also include consideration for transportation alternatives, labour availability, and
environmental concerns. This study should also consider sustainability and equator
principles in its development. The cost of this study will ultimately depend upon its
scope, as well, but should be in the range of $750,000.
o Once the drilling and pre-feasibility studies are complete, modifications of the existingpermits should be made to permit mining operations to go forward.