RE: Management's PlansIF YOU POST SOMETHING PLEASE POST ALL. WHO DO YOU WORK A@HOLE PLEASE CHANGE YOUR OVARITIS THEN YOU CAN GET SOME RESPECT HERE .YOU CAN SEE WHY CMK ARE .40 CENT IMO SOME SMART A@S WANT CHEAP FINANCE DOWN HERE END THEY ARE SELLING EACH OTHER HERE. ALSO IMO CMK MANAGEMENT GAVE THEM GOOD INFORMATION THAT WE DO NOT WANT CHEAP FINANCE WE CAN WAIT COAL PRIZE GO UP NEXT YEARS.IMO THAT IS PROTECTING US MORE FROM RATS. I AM LOOKING HERE THAT SOME PUPPETS POSTING BEHALF OF THOSE RATS. HAHAHAA WE ARE LOOKING 20M THAT THE REASON CMK AT .40 CENT .....
On completion of the full planned capital and refurbishment the coal plant and mine is planned to have the capacity to
produce 3 million tons of marketable metallurgical steel making coal annually. The management plan is to recommence
initial coal production in 2010 at an initial annual rate of 1,120,000 tons of coal, increasing to the full planned level of 3
million tons annually, with refurbishment of the existing mine equipment, including the underground coal haulage system,
re-installation of new in-mine coal conveyors and the mine electric power system.
Refurbishment of the surface coal plant will be a part of the work to bring the mine back into full commercial production.
Coal production is planned to increase systematically with the re-installation of the steel railway line on the right of way
from the mine connecting to the Burlington Northern Railroad (“BNR”) system at the local town of Trinidad. The BNR is
able to service continental customers as well as export coal terminals on both the Pacific and Atlantic coasts to reach the
global sea-borne trade. The initial lower coal production tonnage and sales will be delivered to market in trucks and to the
BNR rail head; the production and sales plan calls for the increase to the present plant design capacity of 3 million tons a
year by year three with the re-installation by New Elk Coal of the rail line to the major railroad carriers from the coal plant
to provide unit train service from the existing mine load-out.
The ‘benchmark’ for annual contract sales of metallurgical coking coal, seaborne trade coal price settlements for the current
year took effect on April 1, 2009 and which apply until March 31, 2010 for metallurgical coking coal between the major
international steel mills and major coal mining companies ranged between US$128.00 to US$129.00 per metric tonne
F.O.B. vessel. Since the ‘benchmark’ price for this year was established, the ‘spot’ price of metallurgical coking coal has
increased and is now reported in the US$165.00 to US$170.00 per metric tonne range, indicating an ongoing strengthening
in the international market price. New Elk has a high quality metallurgical coal resource and has a long history of
providing its excellent quality product into the U.S.A. coking and steel making market. The Company also has in-place
mine and infrastructure and low capital and operating costs projected, and is confident in its ability to enter the
metallurgical coking coal market at a low cost and be fully competitive and economic in its industry, world-wide.
Cline is presently in discussions with financial institutions and financially interested groups with a view to raising on-going
financing of US$20 million to bring New Elk into commercial production at its full planned rate of 3 million tons of coal
annually, as described. The Company has sufficient funds for its immediate purpose and is now providing for its near
future and continuing requirements.
Lodgepole Coal Mine Property
The Company