RE: GCETORONTO, Aug. 31, 2011, 2011 (Canada NewsWire via COMTEX News Network) --
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Cline Mining Corporation ("Cline Mining" or the "Company") (TSX:CMK) Cline Mining continues on plan to ramp up metallurgical coal production at its New Elk Mine in southern Colorado to reach the initial level of 3.0 million tons annually in the first quarter 2012. On August 24, 2011 the Company commenced to drive three new rock slopes from surface down 500 feet (at 6 degrees) to access the Blue seam which lies 50 vertical feet below the level of the coal plant site. The slopes are scheduled to be completed within 60 days at which time mining in the seam will begin with the introduction of four continuous miners in sequence from October through December this year with two additional continuous coal miners being added in the first quarter 2012. The six miners, organized as three super sections, will have the production capacity of 1.8 million tons of clean coal annually.
At the same time, current mining will continue in the Allen Mine, progressing into the Apache and Allen seams with four additional continuous miners organized into two super sections with a combined additional production capacity of 1.2 million tons of clean coal annually. The continuous miner operating in the Apache seam has now reached the ventilation shaft as scheduled enabling the mine ventilation system to be fully conformed to the mine plan. Three additional continuous miners will be gradually mobilized to complete the implementation of the two super sections and continue mining at the full rate according to plan.
As previously announced, the Company's first commercial metallurgical coal shipment was made into rail cars on August 9, 2011 from New Elk's bulk rail load-out facility. The coal met the full specification grade of New Elk's high quality metallurgical grade coal for steelmaking purposes. The New Elk metallurgical coal is a high volatile, high fluidity, high FSI and low sulfur product. An updated audio-video presentation of the mine operations, including the first rail shipment, will be available on Cline's website at www.clinemining.com.
Dennis Z. Mraz, P.Eng, Chief Operating Officer of Cline, is a Qualified Person within the meaning of National Instrument 43-101 and is responsible for the technical content of this press release.
About Cline: Cline has significant metallurgical coal property interests in British Columbia, Canada and in Colorado, U.S.A. with NI 43-101 compliant independent Technical Reports. Cline Mining Corporation is focused on the exploration and development of metallurgical steel making coals in Canada and the U.S., and on its iron ore property in Madagascar and its Cline Lake gold property in northern Ontario, Canada.