Corsa Announces Purchase of 29.5 Million Ton Alumbaugh Expansion of the Acosta Deep Project
Toronto, Ontario – Corsa Capital Ltd. (TSXV: CSO) is pleased to announce that pursuant to its previously announced option, it has purchased the rights to mine all coal seams under approximately 5,600 acres in Jenner, Quemahoning, Lincoln, and Somerset Townships in Somerset County, Pennsylvania referred to as the Alumbaugh property.
The Alumbaugh property is immediately adjacent to the Company’s existing Acosta Deep project, a probable reserve in the Middle and Lower Kittanning coal seams, which contains 5.7 million recoverable tons of metallurgical coal and is located 20 miles by truck from the Company’s coal preparation plant.
This property has been extensively drilled with a total of 50 cores extracted within the footprint of the coal resource, the most recent of which (11) were pulled in 2010 and 2011 by Wilson Creek Energy.
Preliminary calculations for the Alumbaugh property, utilizing Carlson Mining Software, indicate the presence of a total of 29.5 million tons of in-place, low volatile, coking coal within the Lower, Middle and Upper Kittanning seams as follows:
|Seam||Tons||Average Thickness (feet)|
|Upper Kittanning||8,903,000 tons||3.35|
|Middle Kittanning||7,979,000 tons||3.44|
|Lower Kittanning||12,591,000 tons||3.2|
These coal seams are located 200 to 600 feet below the surface and exhibit an average inclination of 2 degrees.
This deposit meets the definition of an indicated coal resource as per National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). A technical report (within the meaning of NI 43-101) has not been prepared in respect of the Alumbaugh property. The effective date of the estimate of the mineral resources contained in the press release is April 1, 2011. The estimate of mineral resources reflects known environmental, permitting, title and other relevant matters. The footprint will require further definition in the following areas in order to achieve the classification of a coal reserve: surface and mineral control, mineability related to geologic conditions, and economic viability. The mineral resources referred to in this press release have not been classified as mineral reserves and a feasibility study has not been completed. Accordingly the economic viability of the Alumbaugh property has not yet been demonstrated.
The purchase price is a total of US$7 million of which US$3 million was paid on exercise. US$500,000 is payable on each April 5, 2012 and 2013 (unless the property is permitted for mining earlier). The balance is payable in three equal annual installments commencing on the earlier of the date the property is permitted for mining and April 5, 2014.
Don Charter the President and CEO of the Company stated “This purchase is a significant expansion of the Company’s Acosta Deep project and is another step in the Company’s progress in expanding its resource base.”
Corsa is a Canadian public company in the business of mining, processing and selling metallurgical coal as well as actively exploring, acquiring and developing resource properties consistent with its coal business, all currently located in Pennsylvania.
The mineral resource estimates have been prepared under the supervision of, and the technical information in this press release was verified and approved by, Dennis Noll of Earthtech Inc., a qualified person, as such term is defined in NI 43-101 – Standards of Disclosure for Mineral Projects. Dennis Noll is independent of Corsa and Wilson Creek Energy.
For further information please contact:
Corsa Capital Ltd.
Don Charter, President and Chief Executive Officer
Certain information set forth in this press release contains “forward-looking statements” and “forward-looking information under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements which include management’s assessment of future plans and operations and are based on current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as “expects” “anticipates”, “believes”, “projects”, “plans”, and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the Company’s actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: liabilities inherent in coal mine development and production; geological, mining and processing technical problems; the Company’s inability to obtain required mine licenses, mine permits and regulatory approvals required in connection with mining and coal processing operations; dependence on third party coal transportation systems; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in commodity prices and exchange rates; changes in the regulations in respect to the use of coal; the effects of competition and pricing pressures in the coal market; the oversupply of, or lack of demand for, coal; currency and interest rate fluctuations; various events which could disrupt operations and/or the transportation of coal products, including labor stoppages and severe weather conditions; the demand for and availability of rail, port and other transportation services; and management’s ability to anticipate and manage the foregoing factors and risks. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The reader is cautioned not to place undue reliance on forward-looking statements.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.