TORONTO, July 15, 2014 /CNW/ - Pacific Coal Resources Ltd.
(TSXV: PAK) provides an operational update on its second quarter of
2014 production at the La Caypa and Cerro Largo mines, in addition
to the production outlook for the mines for the remainder of 2014
and details of a debt offering.
Hernan Martinez,
Executive Chairman, commented: "The Company produced 284,262 tonnes
of thermal coal in the second quarter of 2014, a 3% increase from
the 274,744 tonnes produced in the first quarter. For the
remainder of 2014, we are aiming to maximize south pit production
and working towards full-scale underground production at the La
Caypa mine, beginning by completing the 40,000 tonne pilot project
by the end of the year. At the Cerro Largo mine, the Company will
continue its focus on maximizing operations and lowering costs as
the mine's new third party operator ramps-up to full
production."
Production at La Caypa
Open-pit
operations |
Production of
Coal
(metric tonnes) |
Waste
(bcm)(1) |
Stripping
Ratio |
|
|
|
|
Q2 2014 |
|
|
|
|
|
|
|
Operations(2) |
191,975 |
3,026,723 |
15.77:1 |
South pit
development |
- |
609,841 |
N/A |
Total |
191,975 |
3,636,564 |
18.94:1 |
|
|
|
|
2014
YTD(3) |
|
|
|
|
|
|
|
Operations(2) |
430,803 |
5,127,295 |
11.90:1 |
South pit
development |
- |
2,097,785 |
N/A |
Total |
430,803 |
7,225,080 |
16.77:1 |
(1) Bank cubic meters
(2) La Caypa's operations for the second quarter
included 17,372 tonnes from the north pit and 174,603 tonnes from
the south pit, and 233,697 tonnes from the north pit and 197,106
tonnes from the south pit for the first half of 2014.
(3) Year to date |
|
Underground operations |
Production of Coal (metric
tonnes) |
Q2 2014 |
4,669 |
2014 YTD |
6,992 |
Production from the La Caypa mine was 196,644
tonnes in the second quarter of 2014 (open-pit operations of
191,975 tonnes and underground operations of 4,669 tonnes),
achieving 73% of its planned production and 18% less than the
241,151 tonnes produced in the first quarter of 2014.
The decrease from the first quarter of 2014 can
be attributed to adverse geological conditions in the section
produced from in the second quarter. The issue is outside of
the Company's control and primarily a result of naturally occurring
burning of the coal mantles in addition to the mantles being
affected by the presence of a geological fault.
The Company continues to forecast thermal coal
from La Caypa in 2014 of approximately 960,000 tonnes (open pit
production of 920,000 tonnes and underground production of 40,000
tonnes), representing a 5% production decrease from 2013.
Production at Cerro Largo
|
Production of
Coal
(metric tonnes) |
Waste
(bcm) |
Stripping Ratio |
Q2
2014 |
87,618 |
912,825 |
10.42:1 |
2014
YTD |
123,211 |
1,306,469 |
10.60:1 |
In the second quarter of 2014, the Company
produced 87,618 tonnes from the Cerro Largo mine, over two times
the amount produced in the first quarter of 2014 (35,593 tonnes)
and 12% greater than the second quarter of 2013 (78,429 tonnes).
Production at Cerro Largo in January and February 2014 was lower as the Company finalized
a contract with a new third party operator, who commenced
operations late in the first quarter of 2014.
Production was 36% below planned production for
the second quarter of 2014 as the new operator's ramp-up to full
production was slower than originally anticipated. Production
targets for 2014 at Cerro Largo are 0.4 million tonnes, an
approximately 32% increase over the tonnes produced in 2013.
July Debt Offering
In July 2014, the
Company completed a debt offering for aggregate gross proceeds of
approximately USD$6.5 million at an
interest rate of 12%, payable monthly. The notes expire in
July 2015 and are guaranteed by a
USD$6.5 million payment as part of
the 2013 Barranquilla port concession sale agreements, which is
also due in July 2015. Net proceeds
were approximately USD$6.3 million,
after excluding fees associated with the offering. Related parties
to the Company subscribed up to $0.5
million of the debt offering.
About Pacific Coal Resources Ltd.
Pacific Coal Resources Ltd. is a
Canadian-based mining company engaged in the acquisition,
exploration and production of coal and coal-related assets from
properties located in Colombia.
The Company's common shares are listed on the TSX Venture Exchange
and trade under the symbol "PAK".
Forward Looking Information:
This news release contains "forward-looking
information", which may include, but is not limited to, statements
with respect to the future financial or operating performance of
the Company and its projects. Often, but not always,
forward-looking statements can be identified by the use of words
such as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or believes" or
variations (including negative variations) of such words and
phrases, or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Pacific Coal to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements.
Forward-looking statements contained herein are made as of the date
of this press release and Pacific Coal disclaim, other than as
required by law, any obligation to update any forward-looking
statements whether as a result of new information, results, future
events, circumstances, or if management's estimates or opinions
should change, or otherwise. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, the reader is
cautioned not to place undue reliance on forward-looking
statements.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
SOURCE Pacific Coal Resources Ltd.