The Company operates an open-pit mine on the Perry Creek property, one of the properties within the Wolverine Group. Coal was first produced in 2006. As of June 30, 2008 the Company has obtained a Mine Permit allowing for coal production from the Wolverine Mine of 3.0 Mt/a, the design capacity of the preparation plant. The capital cost of the mine and plant was approximately $245 million, which was completed on-time and on-budget.
The Wolverine Group is expected to be producing 3.5 Mt/a from the Perry Creek, EB and Hermann mines.
Coal from EB will be transported via an existing road (upgrading required) to the Wolverine coal preparation plant. The EB pit was included in the original EA Certificate approval for the Wolverine Project, and in the 2005 Wolverine feasibility study. Work is currently underway on the application for approval of the Mine & Reclamation Plan for the EB pit, to be submitted later in 2008, with approval expected early in 2009.
The Hermann property is part of the Wolverine group of coal properties, although not part of the Wolverine Project as defined above. It is a property which would provide additional feed to the Wolverine coal preparation plant. Hermann is not expected to be developed until 2010. An EA (Environmental Assessment) Certificate has been obtained.
Mining Engineer
Location: Tumbler Ridge
Environmental Technician
Location: Tumbler Ridge
Maintenance Foreman
Location: Tumbler Ridge
As at March 31, 2009 |
Reserves |
Resources |
Inferred |
||||
|
Proven |
Probable |
TOTAL |
Measured |
Indicated |
TOTAL |
|
Perry Creek |
28.9 |
- |
28.9 |
29.9 |
0.4 |
30.3 |
- |
EB |
- |
8.0 |
8.0 |
- |
11.8 |
11.8 |
- |
Hermann |
10.7 |
- |
10.7 |
15.0 |
15.6 |
30.6 |
9.6 |
TOTAL |
39.6 |
8.0 |
47.6 |
44.9 |
27.8 |
72.7 |
9.6 |
Notes:
- All coal reserves are run-of-mine (ROM) tonnages. They include provisions for mining dilution and losses, but not effects of coal washing or processing to saleable product.
- Perry Creek reserves are reduced by quantities removed by mining to March 31, 2009.
- Resources are inclusive of the coal used to derive Reserves.
- EB resources from “Revised Technical Report on the EB Project”, November 2007, Marston Canada Ltd. Qualified Person (QP) for purposes of NI 43-101 is Edward H. Minnes, P.E.
- Perry Creek surface resources from “Technical Report on the Perry Creek Mine”, February 2008, Marston Canada, Ltd. Qualified Person (QP) for purposes of NI 43-101 is James McQuaid, P.Eng.
- Perry Creek underground resources have been impacted by update of Perry Creek open pit resources and not yet re-quantified so are not included here.
- Hermann resources from “Technical Report on the Hermann Project Feasibility Study”, December 2007, Marston Canada Ltd. QP is Edward H. Minnes, P.E.
