Posts tagged coal

First Coal Corporation is a private Canadian company exploring and developing coal properties in northeast British Columbia, Canada. First coal has more than 90,000 hectares under license term or license application in the Peace River. First coal is the first company in the world from coal narrow, steep seams using a method that combines the development of trenches and coal production with the Dip Highwall Mining System addCar Each. The company is the extraction of bulk samples in Q1 2010 with this technology and expects to begin full production in 2013

Intelligence Resource. Doug, you are in two areas of exploration project in central British Columbia known as South Central and South Cirque. Let’s start with the description of each of these project areas, the type of coal to all and to all the resources you have found
Doug Smith. These are the first two properties we have and that we, the developing countries. Both are in the north-eastern British Columbia. The draft South Central Coal has about 80 million tonnes of coking coal resources, about half of the PCI and semi-volatile hard coking coal averages. And then, in the south of the project, a property such as Cirque du Sud, the historic resources of over 500 million tonnes of coking coal is known to have

RI. Based on the resources you have today to be at South Central, how long a life span of the mine it?
DS: The extraction technique that we have chosen is an innovative concept of mining trench with high wall mining machines We thus creating ditches to 600 meters and mining centers in the high walls of the trench to mining by remote control. Equipment. In this phase, we interpreted the trenches up to 50 meters deep and so we see a life of 12-15 years in South Central Mine. We also have the option, up to 100 feet deep and would extend the mine life.

RI: That’s huge. If the approach you’re really using this new technology at the plant you save money
DS: We think so. The concept would be a lesser impact on the environment, which means in our case, increased profitability. Also, because we mining trenches instead of traditional methods of mining, we overburden mining less, which means a recovery rate of 4.01 bis 05.01 clock. The combination reduces the overall cost of operation

RI. What are the operating costs per tonne if this mining method
DS: Our studies show that the moment we have proposed cost for the ship in Prince Rupert are about Canadian per tonne. Coal prices are generally expressed in international dollars

RI. Their last resource size was estimated at 81 million tons in all categories in the field of South Central. What is the price of coking coal in a similar markets in North America
DS: Right now, the market price per tonne for USD9 cooking hard and PCI coal – it is to approximately USD per tonne. Spot prices are much higher. We believe that our deposit of 50% and 50% PCI coal to coke. But while these prices are acceptable to us, we’re certainly looking to recover the price of coal used, because it beats analysts to take the direction of the recession, were much higher than contract prices today . It is expected that prices will rise in 2010 and remain relatively strong in the years after

RI. What is the geometry of the deposit, how?
DS: These deposits are several steep climbs and steep anticlines seams.We 50 to 90 ° along the strike. The strike extends from northwest to southeast, about 10 km south-central, then we see the seams extend continuously in the strike zone. We have ditches on 600 meters centers, then we can mine in the upper wall of the trench. We designed the device to my 300 meters horizontally. We believe that the ownership of South Cirque geology very similar to

RI. Have you started looking at marketing the product and sending samples to potential bidders
DS: We have sent samples to a small scale to potential customers. We did some tests in a coke oven plant in Pittsburgh, and we have information on the washed coal and coke products. We have now started sending samples to customers.
We are in the process now deposited in a bulk sample of the great South Central. The primary objective of mining equipment to test the regional geology, to be sure it works as expectedand second, we need to provide bulk samples for commercial high ..

RI: You recently requested an environmental assessment for the proposed South Central. What is involved in this and how long it will
DS: We’re just applying. It could be 16-20 months, we hope that by the end of 2011, we completed the environmental assessment and approval process of the mine itself

RI. What aspects of the team you have put in place gives you bragging
DS: We have a management team that has industy for many years both in coal and mining in general. As for me, I am engaged in the coal industry for over 30 years working with Luscar Ltd., Canada and with Andalex Resources, Inc. in the United States. Our Chief Operating Officer Peter Stokes has over 45 years experience in metal mines and two coal mines in the world. He began his career with the National Coal Board, then came to Canada and worked with Kaiser Resources and Westmin Resources for a certain period, then his own consulting company for years, working on projects around the world. Our CFO Alan Ahlgren Kinross Gold worked in the past, and, finally, our Vice President of Engineering Bruce Briggs, has extensive experience in coal and metals projects worldwide.

RI: So, there is a team with extensive experience, especially in coal mines. What was your experience working with communities?
DS: Very positive. Our goal and commitment is to hire firms for First Nations and First Nations peoples of the environment at every opportunity. In my experience, I know that our presence in the region can benefit Chetwynd important to the community as jobs and economic recovery.

RI: What project Cirque du Sud? You said that of 575 million tons of historical resources. How well drilling and metallurgical finished DS />

RI: It sounds like you definitely have a lot of energy focused on the draft South Central. Can you project when you are in production, in a baseline scenario?
DS: First of all, we are, our exploratory study published this month. The next big step is to evaluate the process of environmental approval and is completed in early 2012, then makes a decision immediately after production. In this case, we will begin production in 2013 and South Cirque follow behind it until the year 2016.

RI: How good are funded in the meantime to get through the scoping study and the next phase DS />

IR: How did you manage all this as a private company does Doug
DS: We have a solid business plan with a group of professionals in the mining sector has experienced. We were the storm of the year 2008 by a slowdown in our weather, but we’re still on track with our business plan. I think it shows the strength of our business.

RI: Statements by investors, how would you ask them, first evaluate coal
DS: We’re still a gold exploration and development. How can we get out of this planned funding next thepermitting and complete, we will then move to a manufacturing company in 2013.We through a company with innovative mining method that has the potential to reduce costs in the coal market metallurgical. We are ready to come in the production and demand for our products is strong. Northeast British Columbia is one of the few places in the world where the infrastructure is available with a great capacity to move quality resources in international markets.

steps:

* scoping study for mid-March 2010
* financing activities in the Second Quarter of 2010
* testing environment and the production decision in 2012 Q1
* first start of construction Quarter of 2012
* South Central Production 2013, Cirque du Sud production in 2016

PCI Scope