Cline Mining Corp. (TSX: T.CMK, Stock Forum) is preparing a new mining plan for its New Elk coal mine in southern Colorado to take into account additional coal resources that were announced in May.
A detailed optimization process has been commenced to ensure that the optimum net present value is achieved for the asset, said New Elk Chief Operating Officer David Stone. It will take into account the inclusion of 230.4 million tonnes of measured and indicated coal resources that were identified by Agapito Resources Inc. and described in a company press release on May 24, 2012.
It is envisaged that this process should eventually take up to 12 weeks, the company said in a release. During this time, a budget will be developed for the remainder of 2012 and for 2013.
On May 24, Agapito reported a total measured and indicated coal resource for the New Elk coal mine of 618.9 million tonnes, plus an additional 104.5 million of Inferred coal resources, including the extended Department of Wildlife lease, the recently acquired Secora Ranch and four new coal seams.
This represents an increases of 230.4 million tonnes of measured an indicated coal resources and 81.8 million tonnes of inferred material from a technical report completed in May 2011.
Trading at 82 cents on Tuesday, Cline has a market cap of $171.1 million, based on 208.6 million shares outstanding. The 52-week range is $2.72 and 56 cents.