TORONTO, July 18, 2013 /PRNewswire/ - Pacific Coal Resources Ltd. (TSXV: PAK) today provided an operational update on its second quarter 2013 production at its La Caypa and Cerro Largo mines.
Hernan Martinez, Executive Chairman, commented: "We made good progress with regard to the Company's production during the second quarter of 2013, producing 398,865 tonnes of coal. This represents a 79% increase over the first quarter of 2013 and a 26% increase over the 2012 quarterly average. We have also made important progress with the development work at La Caypa's south pit. The Company remains committed to expanding its margins and reducing its costs on a per tonne basis."
Q2 2013 production at La Caypa
Production of Coal
(1) Bank cubic meters
During the second quarter of 2013, the Company produced 320,436 tonnes at La Caypa, 111% of its planned production. This represents the highest production at the mine since the first quarter of 2011 and a 169% increase from the 118,980 tonnes produced in the first quarter of 2013. The increase can be attributed to the positive results of the collaboration between the Company's La Caypa team and the mine's new operator, who completed their first full quarter of operations. Operational stripping ratios at La Caypa also improved from the first to second quarter of 2013 (from 8.57:1 to 8.02:1, a 6% decrease).
Given that La Caypa produced 439,416 tonnes of coal in the first half of 2013, including the limited production in the first quarter of 2013 as the new operator ramped-up, the Company continues to anticipate production of 1.0 million tonnes at La Caypa in 2013. This would represent a 12% production increase from 2012.
Q2 2013 production at Cerro Largo
Production of Coal
In the three months ended June 30, 2013, coal production at the Cerro Largo mine was 78,429 tonnes, which was below planned production for the quarter. Production was limited as a result of Cerro Largo's transition from using a third party operator to operating the mine in-house during the quarter. In-house operations progressed well during the quarter, with the tonnage produced in June more than doubling from production in April. The second quarter stripping ratio was the lowest recorded since the mine began full operation, down 24% from the first quarter of 2013.
The Company production target in 2013 for Cerro Largo is between 0.5 and 0.6 million tonnes, an increase of approximately 50% from 2012.
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.
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SOURCE Pacific Coal Resources Ltd.