TORONTO, Oct. 15, 2013 /PRNewswire/ - Pacific Coal Resources Ltd. (TSXV: PAK) provides an operational update on its third quarter 2013 production at the La Caypa and Cerro Largo mines.
Hernan Martinez, Executive Chairman, commented: "The production improvements noted in the first half of the year continued as the Company produced 395,499 tonnes of coal in the third quarter of 2013. This was consistent with the 398,865 tonnes produced in the second quarter of 2013 and represents a 27% increase over the quarterly average in the first half of 2013. We also continue to make important progress with the development of La Caypa's south pit. The Company remains committed to expanding its margins and reducing its costs on a per tonne basis."
Q3 2013 production at La Caypa
Production of Coal
(1) Bank cubic meters
During the third quarter of 2013, the Company produced 315,933 tonnes at La Caypa, 105% of its planned production and consistent with the production of 320,436 tonnes in the second quarter of 2013 (which represented the highest production at the mine since the first quarter of 2011). The positive results can be attributed to the proficiency of the Company's new management and their La Caypa team. Operational stripping ratios at La Caypa also continued to improve, from 8.02 in the second quarter of 2013 to 7.74 in the third quarter of 2013 (3% decrease).
Given that La Caypa produced 755,349 tonnes of coal in the first nine months of 2013, including the limited production in the first quarter as the new operator ramped-up, the Company is in-line to meet the anticipated production target of 1.0 million tonnes at La Caypa in 2013. This would represent a 12% production increase from 2012.
Q3 2013 production at Cerro Largo
Production of Coal
In the three months ended September 30, 2013, coal production at the Cerro Largo mine was 79,566 tonnes, which was below planned production for the quarter. Production was limited due to lower than forecasted availability of equipment for mine operations and transportation, as the Company transitioned from use of a third party operator to operating the mine in-house in 2013. The Company plans to rectify these issues in the fourth quarter of 2013. The third quarter stripping ratio was consistent with the ratio for the first six months of 2013 (11.00).
As the Company continues to ramp-up in-house operations of Cerro Largo, production targets for 2013 for Cerro Largo were adjusted to 0.4 million tonnes, consistent with the production levels in 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.