Vancouver – Cline Mining (CMK.H-V) is fast-tracking its Lossan coal project, in northeastern British Columbia, to the feasibility stage after completing its bulk sampling and drilling program ahead of schedule. The property is situated near Pine Valley’s (PVM-V) Willow Creek coal mine near Chetwynd.
The Lossan coal deposit contains both near-surface oxidized pulverization injection coal (PCI) as well as unoxidized coking coal at depth.
Recent work included mining a bulk sample from new underground adits and drilling 4,281 metres in 28 holes. The 10-tonne bulk coal sample includes material from the PCI and coking coal sections of the deposit. The sample is being processed in Calgary for process plant design and marketing purposes.
Cline eventually wants to produce 1,000,000 tonnes per year, but in order to fast-track the project, is gearing the feasibility study to a quarter of that rate (250,000 tonnes), initially. The company expects that it could begin production at the initial rate by the first quarter of 2006, provided the project clears provincial environmental reviews. Rescan is overseeing the environmental aspects of the feasibility.
Norwest’s formal feasibility report is expected to be completed in November.
Norwest has the advantage of drawing on previously-completed feasibility studies done on Lossan on behalf of Gulf Resources in the early 1990s. These considered production scenerios of 1 and 3-million tonnes per year.
The deposit sits within 15 km of the CNR main line which serves both the northern and southern coal terminals in the province at Prince Rupert and Vancouver, respectively.
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