RSM Advances its Wolfe County, Kentucky Coal Property
27 August 2008 - 2:49AM
Marketwired
ROYAL STANDARD MINERALS INC. (TSX VENTURE: RSM)(OTCBB: RYSMF),
"RSM", RSM has advanced its surface mine coal project in Wolfe
County, Kentucky. The permitting and bonding for the initial phases
of the strip mine are in place and is expected to be approved by
the Kentucky Department of Natural Resources this week. All of the
necessary surface equipment to commence mining is in place,
according to Qualified Person the writer and reviewer of this press
release, Roland M. Larsen.
The expectation is that the initial construction of the surface
mine can be started as early as next week. This work will include
the construction of access roads into the property, the
construction of water containment ponds and clearing of timber on
the permitted minesite. The property includes more than 1,000 acres
with opportunities to expand the property position. The project is
sufficiently funded to bring the project into production with an
estimated startup, excluding permitting and bonding costs, to
production cost of approximately $500,000.00
The first coal shipment from this property is expected to be
within the next 30 days. Based upon drilling and outcrop trench
sampling data and chemical analysis indicates that the coal quality
is power generation for the industrial market, characterized as
12,000 btu, 1-2% sulfur, less than 10% ash, bituminous coal that
will be sold on a spot market basis. The production rate is
expected to commence initially in the 10,000 ton per month range
increasing to 20,000 tons per month when the mine is developed.
Coal prices based upon NYMEX-Big Sandy River and local brokers,
who are purchasing coal from the producers in this area indicate
that they are paying more than the posted prices to purchase the
production from the producers, a tight production market, indicate
that prices for this coal ranges from $75 - $100 per ton with
operating cost including transportation to the river for barge
transport in the $45-$50 range yielding an estimated operating
margin of between $25-$50 per ton. The company will try to
establish a market with the local power utility after the mine has
established a regular monthly production rate.
RSM is an exploration and development company with interests in
coal and precious metals in the United States.
The information presented in this press release is subject to
the various regulatory approvals. The economic viability of this
project is uncertain and is contingent upon coal pricing and mining
conditions that could affect the project economics.
The TSX Venture Exchange does not accept responsibility for
adequacy or accuracy of this release as per Exchange Policy 3.3
section 6.5.
Royal Standard Minerals cautions that the statements made in
this press release and other forward looking statements made on
behalf of the Company may be affected by such other factors
including, but not limited to, volatility of mineral prices,
product demand, market competition, imprecision of mineral
estimates, and other risks detailed herein and from time to time in
the Securities and Exchange Commission filings of the Company.
C.U.S.I.P. # 780919106
Contacts: Roland Larsen 804-580-8107 804-580-4132 (FAX)
Royalstandardminerals.com
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