KNOXVILLE, TN, March 31 /PRNewswire/ - Raven Crest Minerals, 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 Brier Creek thermal coal reserves ("the Property") located in Boone and Kanawha Counties, West Virginia. The work was conducted under the supervision of James S. Canterbury of Summit Engineering Inc. and is detailed in a National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") technical report on the Property entitled "An Independent National Instrument 43-101 Report Summarizing Mineral Exploration, Development and Production Activities of Xinergy Corporation, Regarding Brier Creek Reserves, Through Its Wholly Owned Subsidiary Raven Crest Minerals, LLC Boone and Kanawha Counties, West Virginia" (the "Technical Report"). The Technical Report indicates that there are approximately 59.4 million measured and indicated mineral resource tons currently leased, from which there are approximately 27 million proven and probable mineral reserve tons on the Property. These results supersede the estimated results that were disclosed in a press release dated March 2, 2011 when the lease agreement ("the Transaction") was announced. 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 Transaction includes surface leases and coal subleases to the thermal coal reserves through two fully permitted deep mine areas, which have been faced up, as well active permits for a coal preparation plant and refuse area.
Jon Nix, Xinergy's Chairman and CEO, said, "Xinergy has a proven track record of acquiring and developing additional coal reserves. We have grown our proven and probable reserves as well as our permitted reserves exponentially since inception and are continuously evaluating additional opportunities. The Brier Creek property, which is adjacent to our Raven Crest mining complex, is fully permitted with approximately 27 million tons of high-quality thermal coal. We expect to begin developing the Property over the next several months."
The Company expects initial production of 50,000 tons per month on the Property to begin in early 2012, after construction of a new preparation plant, with production expected to increase to an annual rate of 1.2 million tons per year, subject to market conditions, once the Property is fully developed. The Company further anticipates total capital expenditures related to the Property to be approximately US$40 million including the preparation plant and mining equipment.
James S. 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, development of the property 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 thermal 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.