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RSM Resouro Strategic Metals Inc

0.42
0.00 (0.00%)
27 Jun 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type
Resouro Strategic Metals Inc TSXV:RSM TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0.42 0.41 0.47 0 21:00:00

RSM Advances its Wolfe County, Kentucky Coal Property

26/08/2008 5:49pm

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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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