Xinergy Ltd. Announces Filing of Ni 43-101 for Greenbrier Metallurgical Coal Reservesadmin
South Fork Coal Company, LLC, a wholly owned subsidiary of Xinergy Ltd., 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 Greenbrier metallurgical coal reserves (“the Property”) located in Greenbrier County, West Virginia. The work was conducted under the supervision of James Canterbury (“Qualified Person”) of Summit Engineering Inc. and is detailed in a National Instrument 43-101 (“NI 43-101″) technical report on the Property entitled “An Independent National Instrument 43-101 Report Summarizing Mineral Exploration, Development and Production Activities of South Fork Coal Company, LLC Mining Reserves, Greenbrier County, West Virginia” (the “Technical Report”). The Technical Report indicates that there are approximately 32.4 million measured and indicated mineral resource tons currently leased, from which there are approximately 25.4 million proven and probable mineral reserve tons on the Property in the seven seams evaluated in the Technical Report. These results supersede the estimated results that were disclosed in a press release dated January 31, 2011. 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 base case mine plan anticipates the Company starting production on or about October 1, 2011, at an average of 10,000 tons per month for 2011, then ramping up to a run rate of 500,000 tons annually in 2012. The company envisions total capital expenditures for the Property to be in the range of US$25 million – US$40 million.
Jon Nix, Xinergy’s Chairman and CEO, commented, “We are pleased to provide all interested parties, including our shareholders, with the additional color on our previously announced metallurgical coal acquisition contained in this Technical Report. Bernie Mason [Xinergy’s President] and his team in West Virginia have done a tremendous job executing our vision of creating shareholder value through organic growth, as well as accretive acquisitions with this being the most significant to date. We expect this Property to have a substantial, positive financial impact on our company going forward.”