Printer Friendly
The Free Library
14,560,361 articles and books
Member login
User name  
Password 
 
Join us Forgot password?

Globaltex Industry Says Pine Valley Coal Feasibility Study Projects High Rate of Return for Mine.


Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Sep. 25, 2002

High Quality Reserves Expected to Enjoy Strong Market Demand Over

the Long Term; Board Considering Strategic Alternatives to Realize

Value

Globaltex Industries Inc. (TSX-VE:GTX GTX Gore-Tex
GTX Global TeleExchange
GTX Grand Tourisme Extra
; NASD NASD

See: National Association of Securities Dealers


NASD

See National Association of Securities Dealers (NASD).
 OTC OTC

See: Over-the-counter.


OTC

See over-the-counter market (OTC).
:GBTXF) announced today that a newly concluded feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented.  of its Pine Valley Pine Valley may refer to:
  • Pine Valley, California
  • Pine Valley, New Jersey
  • Pine Valley Golf Club, ranked #1 in the US by Golf Digest
  • Pine Valley, Utah
  • Pine Valley, Wisconsin
 Coal property, of which Globaltex is majority owner, projects a cumulative after mineral tax cash flow in excess of CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. $85 million over the project's estimated 14-year life, making the property highly economic.

At a 5% discount, moreover, the net present value pre-tax return would approximate CDN$51 million, for an internal rate of return of almost 27%, according to the report prepared by Norwest Corporation, a leading international consulting and engineering firm retained by Pine Valley Coal Ltd.

"This is an exciting report that underscores the validity of the many years and hard work that has gone into developing Pine Valley and justifies the early enthusiasm that high grade, good quality coal exists and that it can be mined economically," said Mark Fields, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board.  of Globaltex. "There is now no question that the Pine Valley Coal Project is viable, with an attractive rate of return founded on low operating costs, modest capital requirements Capital requirements

Financing required for the operation of a business, composed of long-term and working capital plus fixed assets.
 and improving metallurgical coal prices. Extracts from the feasibility study can be viewed on our web site, www.globaltexinc.com."

He noted that Pine Valley Coal has already received key operating and environmental permits to begin development and construction.

Walter Davidson, Chairman of Globaltex, said that the Company's Board of Directors currently is studying strategic alternatives to determine, among others, whether to obtain financing and go forward in developing the Project, or seek a strategic buyer or partner. "Our focus is clearly on doing what is best for the shareholders, who have been very patient," he added.

The feasibility study estimated initial capital costs of approximately CDN$24.1 million to fully equip the site and begin production. Annual production is planned to average 950,000 tonnes (1,045,000 tons) of coal from open pits with a low strip ratio of clean coal to waste rock of 4.36:1 for the life of mine. The report estimates the operating and processing costs will be CDN$25.09 per tonne of coal production. While using a base case 14-year life, the report also indicated there appears to be significant potential for improvements by increasing the mine life and/or annual production through delineation of increased reserves and utilizing recent processing advancements.

While noting that the long-term outlook for coal prices is a function of global economic conditions and the financial outlook for the steel industry, the feasibility report commented that "the market for coking coal and the market for PCI (1) (Payment Card Industry) See PCI DSS.

(2) (Peripheral Component Interconnect) The most widely used I/O bus (peripheral bus).
 (pulverized pul·ver·ize  
v. pul·ver·ized, pul·ver·iz·ing, pul·ver·iz·es

v.tr.
1. To pound, crush, or grind to a powder or dust.

2. To demolish.

v.intr.
 coal injection) coal is stable and continues to expand. The economic and financial conditions affecting the international steel industry are leading to increased demand for PCI coal. Metallurgical coal prices have stabilized and the supply side has seen significant concentrations in the past two years. Based on the product coal specifications, Pine Valley metallurgical coal and PCI coal each have positive attributes that will be of interest to prospective buyers."

The feasibility study represents an update of a feasibility study "A Feasibility Study" is an episode of the original The Outer Limits television show. It first aired on 13 April, 1964, during the first season. It was remade in 1997 as part of the revived The Outer Limits series with a minor title change.  completed in January 1999, which included geological evaluations, coal processing and plant design evaluations and economics, geotechnical and hydrological hy·drol·o·gy  
n.
The scientific study of the properties, distribution, and effects of water on the earth's surface, in the soil and underlying rocks, and in the atmosphere.
 evaluations, and environmental studies. The new feasibility study updated the prior study in several important technical and geological respects, in addition to adjusting operating costs and capital requirements to 2002 dollars.

The economic factors used in the feasibility study were as follows for the base case. The coal price for the metallurgical grade production, which is semi-hard coking coal, is US$40.00 per tonne, for the PCI coal US$32.25 and for thermal coal US$28.50 per tonne. The exchange rate used is US$1.00 =CDN$1.55. The production will be comprised of approximately 36% of metallurgical coal, 62% pulverized coal injection ("PCI") and 2% thermal coal. The coal is characterized by its low ash and low impurities content.

Earlier this year, Pine Valley Coal became the first new mine in 20 years to ship coal from British Columbia, when it shipped 84,376 tonnes (93,008 tons) of coal under contract to a Japanese steel maker. Utilization of the Pine Valley coal was reported to be highly satisfactory.

Pine Valley Coal Ltd. is 66.7% owned by Globaltex, and the balance by a Canadian subsidiary of the Japanese industrial company of Mitsui Matsushima. Mitsui Matsushima Canada Ltd. is project sales agent for Pine Valley Coal.

Globaltex also wholly owns the Indin Lake gold property, northwest of Yellowknife in the Northwest Territories, a mine currently inactive but which has demonstrated the presence of high gold grades through successive exploration programs.

The TSX Venture Exchange TSX Venture Exchange

Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors.
 has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

CAUTIONARY STATEMENT

This news release contains certain "forward looking statements", as defined in the United States Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and  of 1995, that involve a number of risks and uncertainties. There can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Such risks and uncertainties are disclosed under the heading "Risk factors" and elsewhere in documents filed.
COPYRIGHT 2002 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2002, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Geographic Code:1CANA
Date:Sep 25, 2002
Words:897
Previous Article:Schnuck Markets Begins Rollout of Next Generation U-Scan Terminals; Fifty Stores to Receive Optimal Robotics' Low Profile Self-Checkout Systems.
Next Article:Teradata Announces Keynote Speakers for PARTNERS 16th Annual Conference and Expo; Premier Data Warehousing Conference Focuses On Industry's Future.
Topics:



Related Articles
Company floats hot idea to city: Abandoned mines possible source for heating system.(Brief Article)
Timmins geothermal project lands city in hot water: use of abandoned mines examined for potential energy project. (Timmins: Special Report).(Brief...
DSM Hires SNC Lavalin & Dynatec for Jacobina Pre-Feasibility.
Globaltex Industries Inc. Announces Appointment of Interim CFO And Willow Creek Coal Project Update.
Golden Star to Develop Wassa Gold Project in Ghana; Total Production to Double at Cash Costs Below $200 Per Ounce.
Geothermal project heats up in Timmins.(Energy & Environment)
Aurizon Awards Casa Berardi Feasibility Study.
Minefinders Receives Positive Feasibility and Initial Optimization Studies for Dolores Gold and Silver Project in Mexico.
Cash Minerals Plans New Exploration Targets To Expand Yukon Coal Reserves And Evaluates Coal Liquefication Projects.
Pine Valley Appoints Executive Vice President and Chief Operating Officer.

Terms of use | Copyright © 2009 Farlex, Inc. | Feedback | For webmasters | Submit articles