Cline Mining Corporation T.CMK

Discussion with Dale Hendrick

[courtney10]

I put in a call to Dale Hendrick, one of the board members.  He returned my call.  He has his own firm, you can google him to get the number,  he will return your call.

Here were his responses to my questions

1- Coal quality,  according to the 43-101, and Sean Cassey- should be able to get 75% discount to premium
2- Operational costs - he is comfortable with approx $100/tonne
3- Buyers of the coal- several
4- Buyers of the Lossan property-  have been approached by a major,  this is an option that the company is seriously considering
5- Buyers of CMK altogether- will be there once production and sales is up and running.
6- lack of transparency from mgmt,- had no comment

One other note, which i found somewhat confusing,   they had a bd mtg  on Friday and were speaking with Sean Cassey, sez that there is approx 50000 tonnes of clean coal on the property ready to be sold.  I asked him this twice and he confirmed it, even after i mentioned to him about the 35000 tonnes report on the latest MD & A.  Would not be surprised to see the coal sold in the next few months.

I also asked him about additional financing, - not happening,  they have enough coal right now to sell at high prices
They are very careful with the finances,  rail line will only be built once sales are established and cash flow is there.

[waterboy2]

Many thanks for the post Courtney10, greatly appreciated. The comment about " bunkering " 50,000 tons of coal is intriguing and confirms that the initial plan to ship multiple trial quantities totalling 10,000 tons feel through the cracks because it is impossible to ship bulk cargo in such small lots. The only exception would be if they were on a river and could ship a part-barge

[brundall]

This post has been removed in accordance with Community Policy

[kamchatkatravel]

Thanks for sharing this, Courtney. I am a bit confused by his comments that no additional financing will be required, given the company's current cash position vs. planned expenses, as well as the language in the MD&A that very explicitly states, "substantial additional funding for the establishment of the company's planned mining operations will likely be required." Would

[maplak]

........careful with finances.LOL I thought that last financing will be used for rail.LOL.So what are they doing with those 75 million filling up the mine with cheap coal.LOL

[waterboy2]

Regarding para 4 of the conversation : LOSSANThe Lossan property contains 186.1 million tons of medium volatile betuminous coal that are described as being of suitable quality for metallurgical & thermal coal applications.The mine is located adjacent to the Willow Creek Mine, now belonging to Walter Energy. Willow Creek may be approaching the end of its lifecycle and Walter may be interested

[ckstar83]

look at jan 24 2006 news release,the feasibility studynpv was about 274.5 million back in 2006,i could be wrong though