Colombia Clean Power Fuels acquires additional coking coal concessions

Thursday, 12 May 2011

Colombia Clean Power & Fuels Inc announced today that it has finalized the acquisition of additional metallurgical coal concessions totaling approximately 3,300 hectares. The properties are located near the town of Otanche, in the district of Boyaca.

The concessions contain three contiguous areas, two of which are already permitted for mining operations. The Company expects the Otanche acquisitions to substantially accelerate its commercialization timeline for mining operations. CCPF has signed and filed definitive agreements before the Colombian Institute of Mining and Geology, Colombia's coal authority, and expects full transfer of the titles within 40 days.

Mr Graham Chapman COO said “The Otanche acquisition is a major milestone in our coal prospect acquisition strategy in Colombia. More importantly, with an approved mining plan and two exploratory drills on location, Otanche represents an opportunity for us to move rapidly to prove reserves and commence commercial operations. Based on initial drilling results, the coal at Otanche appears to be predominantly low and mid-volatility metallurgical coal of very high quality. We believe the coal from Otanche will prove suitable for use in our planned heat recovery coking plant without washing or blending with other coals, which we expect to confirm as we receive additional exploration results.”

The Company's due diligence included access to preliminary drilling that was completed by a previous owner of the property, full legal due diligence and preliminary exploratory drilling by the Company. In addition, the entire area is being mapped geologically to identify and sample the coal outcrops. The first exploration hole has been completed and revealed seam horizons and coal qualities consistent with potential for significant metallurgical coal resources.

Mr Carlos Soto, President of the Company's operating subsidiary in Colombia, Colombia Clean Power, SAS, added, "All data collected from Otanche is being loaded into a Vulcan database to produce a geological model after which a mining model will follow. A leading contracting company in Colombia is developing a conceptual mine plan, which will be verified by independent international experts prior to implementation. Thus far, a provisional portal position has been defined and work is focusing on the transport route from the proposed mine portal to the existing road network."

Colombia Clean Power & Fuels Inc is developing coal mining, coal coking and clean coal technology operations in the Republic of Colombia. The Company plans to build mines to produce both metallurgical coal and high grade thermal coal and implement advanced coal technologies, such as coal gasification and coal to liquids, to produce metallurgical coke, urea, liquid fuels, power and other clean energy solutions. Colombia is the world's tenth largest producer and fourth largest exporter of coal, with an estimated 7 billion tonnes of recoverable reserves and 17 billion tonnes of potential reserves. (sourced steelguru)