Lysander Minerals Corporation: Mine Construction on Schedule and on Budget, Updated Development Plan, Proposed Name Change to EastCoal Inc.
17.01.2011 | Marketwire
VANCOUVER, BRITISH COLUMBIA -- (Marketwire - Jan. 17, 2011) - Lysander Minerals Corporation (TSX VENTURE: LYM) (the "Company") is pleased to report that construction of the first phase ("VNP") of its 100%-owned Verticalnaya anthracite mine in Ukraine is making good progress. Following commencement of construction in late September, 2010, on-surface construction is materially complete, portals for a conveyor drift and auxiliary drift have been constructed and drivage of these drifts has commenced and is progressing well. The project is on schedule and on budget.Subsequent milestones will include drifting into the coal seam, scheduled for April, and commencement of construction of the first longwall, in July 2011. Production from that longwall should commence in early 2012. Additional longwalls will be phased in thereafter.
A combined plan for flexible development of the total project has been updated. An independent technical report, combining VNP and the Verticalnaya mine, is currently being prepared. Under an optimized, combined plan, the Company will strive to expedite development and reach high production levels sooner, achieving early cash flow.
The Company is also pleased to report that, in accordance with the authority granted by shareholders, its Board of Directors has approved a change in name to EastCoal Inc. This will be effective following registration and acceptance by the TSX Venture Exchange. The new name accords with the Company's focus on coal.
The Company has identified the Donbass coal basin of Ukraine as having major potential, including export potential for world markets through rail connections to the nearby Sea of Azov and Black Sea ports. Projects are well located to supply both world export markets and significant local demand. Concurrently with construction of the Verticalnaya mine, the Company is reviewing other acquisition opportunities in the region. Considerable attention is being given to certain existing metallurgical coal operations in need of modernization as well as greenfield metallurgical coal resources. The Company's Board and management have a record of developing successful coal mines quickly.
By Order of the Board,
Bryce M.A. Porter
President
About Lysander
Using high standards of safety and efficiency, it is planned to develop the Verticalnaya mine in stages and lead developments by western companies in the Donbass coal basin.
Verticalnaya North is described in the March 2010 NI 43-101 technical report available on Sedar (www.sedar.com) and the Company's website (www.lysanderminerals.com). It represents the first phase in the redevelopment of the Verticalnaya mine, for which a NI 43-101 technical report was prepared in September 2008 and is also available on Sedar and the Company's website. Key indicators include:
Net present value @ 12% US$ 352.1 million
Internal rate of return 35.2%
Average cash operating cost per saleable tonne US$ 31.19/tonne
Proven reserves 16,200,000 tonnes
Probable reserves 11,000,000 tonnes
Measured resources 57,300,000 tonnes
Indicated resources 18,900,000 tonnes
Total resources 76,200,000 tonnes
Resources are inclusive of reserves.
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For more information, please contact
Lysander Minerals Corporation
Bryce M.A. Porter
President
604-681-8069
604-685-4675 (FAX)
www.lysanderminerals.com