TORONTO, Feb. 4, 2014 /PRNewswire/ - Pacific Coal Resources Ltd. (TSXV: PAK) provides an operational update on its fourth quarter 2013 production at the La Caypa and Cerro Largo mines, in addition to 2014 production outlook for the mines.
Hernan Martinez, Executive Chairman, commented: "The Company produced 1,317,373 tonnes of thermal coal in 2013, a 4% increase from the 1,268,082 produced in 2012. La Caypa mine met the 2013 operational expectations set by management late in 2012, producing in-line with the Company's plan and beginning operations at the south pit in the fourth quarter. The stripping ratio at Cerro Largo significantly improved when comparing 2013 to 2012. In 2014, we look forward to continued growth at La Caypa by ramping-up south pit production and working towards initiating underground production, beginning with the 40,000 tonne pilot project executed by Carbomec de Colombia S.A.S. At the Cerro Largo mine, the Company will continue its focus on maximizing operations and lowering costs. Management will also set long-term plans for the Company's other significant assets."
Production at La Caypa
Production of Coal
|South pit development||-||750,663||N/A|
|South pit development||-||3,928,068||N/A|
|(1)||Bank cubic meters|
La Caypa's operations for the fourth quarter of 2013 included 206,004
from the north pit and 52,750 from the south pit (operations
commenced in the south pit in November 2013).
During the fourth quarter of 2013, the Company produced 258,754 tonnes at La Caypa, 98% of its planned production. Production from the south pit began on schedule in November 2013, with the Company producing 52,750 tonnes as operations ramped-up. Total 2013 production of 1,014,103 tonnes was a 14% increase over the 892,363 tonnes produced in 2012 and in-line with the planned production for 2013. The positive results can be attributed to quality forecasting by the Company's management and superb execution by its La Caypa team. Operational stripping ratios at La Caypa were 10.87 in the fourth quarter of 2013 and 8.72 for the year.
The Company is forecasting open pit production of 1,010,000 tonnes and underground production of 40,000 tonnes of thermal coal from La Caypa in 2014. This would represent a 4% production increase from 2013.
Production at Cerro Largo
Production of Coal
In the three months ended December 31, 2013, coal production at the Cerro Largo mine was 40,909 tonnes, which was below planned production for the quarter, as the Company dealt with lack of availability of mining equipment and transportation. The fourth quarter saw a ramp down to approximately twenty percent of annual production, as the Company explored converting from in-house to third party operations of the mine. On January 31 2014, the Company signed a contract with a third party operator, Servicios Integrales del Ranchería S.A.S. This company is controlled by the same owner as Hormaza and Associates, a company with vast experience in engineering, strip mining services and the Cerro Largo mine specifically, as they are a former operator of the mine and therefore familiar with the region and mine conditions.
The 2013 operational stripping ratios at Cerro Largo were 12.21 in the fourth quarter of 2013 and 11.28 for the year ended December 31, 2013.
The Company is forecasting production of 600,000 tonnes of thermal coal from Cerro Largo in 2014. This would represent nearly two times the tonnes produced in 2013.
Barranquilla Port Sale
The Company is pleased to announce the closing, upon receipt of TSX Venture Exchange approval, of the previously disclosed sale of the port concession it owns in Barranquilla (Concession Contract No. 3-003 7-2008). Please see news releases dated June 28, 2013 and October 28, 2013 for further detail in respect of the transaction.
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.