Quantcast

Compliance Energy confirms Raven coking coal quality

March 25, 2010

TSX-V TRADING SYMBOL: CEC

VANCOUVER, March 25 /PRNewswire-FirstCall/ – Compliance Energy Corporation (“Compliance” or the “Company) is pleased to announce that testing completed at GWIL Industries (Birtley Coal & Mineral Testing Division) in Calgary Alberta, and SGS North America Inc. (Mineral Services Division) in West Virginia USA on core from the 2009 drilling program has confirmed that coal from the Raven Project on Vancouver Island is a High Volatile Bituminous A coking coal. The characteristics of this type of coal allow it to be blended with other coking coals (low to mid volatile) for the production of coke used in steel making. The Raven coal exhibits similar characteristics to The Kellerman and Elkhorn Group (Blend Group G5) of coals under the Classification of Coking Coal By Quality By Group used historically by Nippon Steel Corporation.

The 2009 drill program confirmed continuity of the coal seams as anticipated. In the 42 drill holes completed, a total of 9,899 meters was drilled and coal was intersected in all but one of the 42 holes. (Please see the October 13, 2009 News Release for further details on the drilling program.) Washability tests have also confirmed the assumptions on preparation plant yield used in the 2007 Preliminary Assessment, which was produced by Associated Geosciences Ltd. (Please see the September 05, 2007 for further details on the Preliminary Assessment.)

Analyses of washed coal from Seam One indicate the following characteristics:

    -------------------------------------------------------------------------
                                                       Coking Coal - Seam 1
    -------------------------------------------------------------------------
                                                      Average       Range
    -------------------------------------------------------------------------
             Rank             Vitrinite Reflectance
                               Ro(max)                   0.92    0.90 - 0.94
    -------------------------------------------------------------------------
                              Equilibrium Moisture %     2.02    1.42 - 3.29
    -------------------------------------------------------------------------
                              Ash %                      10.0     7.8 - 12.8
                             ------------------------------------------------
    Proximate Analysis db     Volatiles %                34.0    31.4 - 36.7
                             ------------------------------------------------
                              Fixed Carbon %             56.0    52.3 - 57.8
    -------------------------------------------------------------------------
                              Sulphur % (db)             0.84    0.49 - 1.24
    -------------------------------------------------------------------------
                              Heat Value MJ/kg (db)     31.52  30.17 - 32.25
    -------------------------------------------------------------------------
                              Carbon                    84.74  83.97 - 86.00
                             ------------------------------------------------
                              Hydrogen                   5.43    5.17 - 5.59
                             ------------------------------------------------
    Ultimate Analysis dafb    Nitrogen                   1.48    1.22 - 1.73
                             ------------------------------------------------
                              Sulphur                    0.94    0.54 - 1.37
                             ------------------------------------------------
                              Oxygen                     7.41    5.61 - 8.40
    -------------------------------------------------------------------------
                              FSI                           8      7.5 - 8.5
                             ------------------------------------------------
    Rheological Properties    Fluidity ddpm              1500     194 - 4690
                             ------------------------------------------------
                              Dilatation %                 94       44 - 229
    -------------------------------------------------------------------------
                              Phosphorous in Coal %     0.060  0.045 - 0.102
    -------------------------------------------------------------------------
                              Reactives %                  80        77 - 86
                             ------------------------------------------------
                              Inerts %                     20        14 - 23
                             ------------------------------------------------
    Petrographics             Calculated Strength Index   3.2      3.0 - 3.4
                             ------------------------------------------------
                              Estimated coke Strength
                               JIS DI 30/15              81.1    60.2 - 90.3
    -------------------------------------------------------------------------
                              Coke Reactivity Index
                               CRI %                     66.4
    Moveable Wall Oven Tests ------------------------------------------------
                              Coke Strength after
                               Reaction CSR %             6.0
    -------------------------------------------------------------------------

The Raven coal is unique in western Canada. While the coal exhibits strong coking properties (Free Swelling Index, Fluidity, and Dilatation), its resultant coke strength is low. Typical western Canadian coals are medium or low volatile, inertinite-rich coking coals and the Raven Coal is a high volatile vitrinite-rich coking coal that is similar to high volatile coking coals from eastern Canada, the eastern USA and some parts of Australia.

Based on washability tests on the core from Seam One, preparation plant yield of washed coal (10% ash) is expected to be in the range of 40 to 45%. It is anticipated that under this scenario overall plant yield may be able to be increased to 55 to 60% by also producing a middlings product with higher ash content, which could potentially be sold as a thermal product. If a washed coal of 15 % ash was produced (high energy content thermal coal) as a standalone product, plant yield would increase to over 60%. Preparation plant design is currently being studied by Pincock Allen and Holt as part of the overall feasibility study. Mr. O. R. Cullingham, P. Geo, supervised the drilling and sampling program and is the Independent Qualified Person for the purposes of reporting under National Instrument 43-101.

Good overall progress is being made on the Raven Project. In early March, a Section 11 Order was issued under BC’s Environmental Assessment Act, which establishes the formal scope, procedures and methods concerning the proposed project’s environmental assessment. It is anticipated that The BC Environmental Assessment Office will ask for a public review and comment of the proposed scope sometime in the next few months. After final approval of the scope the Company will be free to submit its application for an Environmental Assessment Certificate.

Pincock Allen & Holt (“PAH”) is making good progress on the mining feasibility study. The geological modeling is close to completion and a resource update is expected in the near future. Mine planning has commenced and PAH has confirmed that based on geotechnical testing of rock core, the Raven Underground Coal Mine is expected to have “…roof and floor conditions that are comparable to many other mines operating in the USA that have devised successful strategies for mining and effective strata control.” It is now anticipated that the feasibility study will be completed early in the third quarter of 2010.

About Compliance Energy Corporation

Compliance Energy Corporation is a coal exploration and development company with an interest in over 75,000 acres of coal and mineral rights on Vancouver Island BC and that owns the Basin Coal Mine near Princeton BC. The company is focused on developing the Raven Coal Project for the Comox Joint Venture, of which it has a 60% interest. The remaining 40% is owned by I-Comox Coal Inc. a subsidiary of Itochu Corporation of Japan and by LG International Investments (Canada) Limited, a subsidiary of LG International Corp. of Korea. Company shares trade on the TSX Venture Exchange under the symbol CEC and investor information is available on the Company’s web page at www.complianceenergy.com.

    On behalf of the Board of
    COMPLIANCE ENERGY CORPORATION

    John Tapics
    Chief Executive Officer

Neither the 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 release

Note: This release contains forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents, filed by the Company on SEDAR at www.sedar.com, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The Company undertakes no obligation to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking statements.

SOURCE Compliance Energy Corporation


Source: newswire



comments powered by Disqus