KNOXVILLE, TN, March 16 /PRNewswire/ - South Fork Coal Company, LLC, a wholly owned subsidiary of Xinergy Ltd. (TSX :XRG ) ("Xinergy" or "the Company"), a US Central Appalachian producer of high quality coal, is pleased to announce that it has completed a detailed review of the mineral exploration, development and production activities at its Greenbrier metallurgical coal reserves ("the Property") located in Greenbrier County, West Virginia. The work was conducted under the supervision of James Canterbury ("Qualified Person") of Summit Engineering Inc. and is detailed in a National Instrument 43-101 ("NI 43-101") technical report on the Property entitled "An Independent National Instrument 43-101 Report Summarizing Mineral Exploration, Development and Production Activities of South Fork Coal Company, LLC Mining Reserves, Greenbrier County, West Virginia" (the "Technical Report"). The Technical Report indicates that there are approximately 32.4 million measured and indicated mineral resource tons currently leased, from which there are approximately 25.4 million proven and probable mineral reserve tons on the Property in the seven seams evaluated in the Technical Report. These results supersede the estimated results that were disclosed in a press release dated January 31, 2011. The complete Technical Report is available on the Company's website www.xinergycorp.com and under the Company's profile at www.sedar.com. The base case mine plan anticipates the Company starting production on or about October 1, 2011, at an average of 10,000 tons per month for 2011, then ramping up to a run rate of 500,000 tons annually in 2012. The company envisions total capital expenditures for the Property to be in the range of US$25 million - US$40 million.
Jon Nix, Xinergy's Chairman and CEO, commented, "We are pleased to provide all interested parties, including our shareholders, with the additional color on our previously announced metallurgical coal acquisition contained in this Technical Report. Bernie Mason [Xinergy's President] and his team in West Virginia have done a tremendous job executing our vision of creating shareholder value through organic growth, as well as accretive acquisitions with this being the most significant to date. We expect this Property to have a substantial, positive financial impact on our company going forward."
The following summary estimate table was taken from the Technical Report.
|Plum Creek Timberlands Area|
|Seam||Mineral Resource Tons||Mineral Reserve Tons|
|Total Measured and Indicated Resource (tons)||32,381,852||Reserves (tons)||25,439,737|
Note: Mineral resources that are not mineral reserves do not have demonstrated economic viability.
James Canterbury, P.E., M.B.A, Vice President with Summit Engineering Inc., is a Qualified Person and Independent of the Company in accordance with NI 43-101. In addition, he has reviewed and approved the technical and scientific information contained in this news release.
About Xinergy Ltd.
Headquartered in Knoxville, Tennessee, Xinergy Ltd., through its wholly owned subsidiaries, Xinergy Corp. and Xinergy of West Virginia, Inc., is engaged in coal mining in eastern Kentucky and West Virginia. Currently, Xinergy sells high quality coal to electric utilities and industrial companies throughout the south-eastern United States. For more information, please visit www.xinergycorp.com.
This release contains "forward-looking information" that includes information relating to future events and future financial and operating performance, including management's assessment of Xinergy's future outlook, forecasts of production, and capital expenditures. Forward-looking information should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by which, that performance or those results will be achieved. Forward-looking information is based on information available at the time it is made and/or management's good faith belief as of that time with respect to future events, and such information is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking information. Important factors that could cause these differences include but are not limited to: changes in contracted sales, the business of the Company may suffer as a result of uncertainty surrounding the metallurgical coal market; the Company may be adversely affected by other economic, business, and/or competitive factors; the worldwide demand for coal; the price of coal; the price of alternative fuel sources; the supply of coal and other competitive factors; the costs to mine and transport coal; the ability to obtain new mining permits; the costs of reclamation of previously mined properties; the risks of expanding coal production; the ability to bring new mines on line on schedule; industry competition; the Company's ability to continue to execute its growth strategies; and general economic conditions. These and other risks are more fully described in the Company's filings with the Canadian Securities Administrators, including its Annual Information Form for the year ended December 31, 2009, available on SEDAR at www.sedar.com. You should not put undue reliance on any forward-looking information. We assume no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward looking information, except to the extent required by applicable securities laws. If we do update one or more forward-looking information, no inference should be drawn that we will make additional updates with respect to those or other forward-looking information.
SOURCE Xinergy Ltd.