H1 2011: Capex $40 million invested to date
(i)H1: First Half, H2: Second Half, kt: '000 tonnes
Since 2010, the Company has invested over $55 million at Ulaan Ovoo. This includes road and bridge construction, mining vehicles, mining camp, pre-stripping, and other infrastructure and community improvement.
This news release is to provide investors and shareholders with an update respecting the current status of and the Company's intentions regarding the Ulaan Ovoo project. The Company cautions that at this time there are no specific plans to resume mining operations at Ulaan Ovoo, and no Russian coal sales and purchase agreements are in place. Prophecy's board of directors and management will continue to assess the conditions for potential mine restart and will disseminate information on the signing of any material coal sales agreements and any decision to restart the Ulaan Ovoo mine if and when these events occur.
Visit www.prophecycoal.com for a map of the Company's Ulaan Ovoo mine.
Mr. Christopher Kravits, LPG, CPG, is a qualified person as defined under National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). Mr. Kravits is not considered independent of Prophecy given the large extent that his professional time is dedicated solely to, and his position as Manager of Mining with Prophecy Coal Corp. Mr. Kravits has reviewed and approved the technical and scientific disclosure within this news release.
About Prophecy Coal
Prophecy Coal Corp. is a Canadian company listed on the Toronto stock exchange engaged in developing energy projects in Mongolia. Prophecy's wholly-owned subsidiary Prophecy Power Generation LLC is advancing plans for a proposed 600 MW coal-fired mine-mouth power plant, which has been licensed by the Mongolian government, adjacent to its Chandgana coal deposit. Chandgana Coal LLC, another Prophecy wholly-owned Mongolian subsidiary, has contracted to supply 3.6 million tonnes of coal per year to Prophecy Power for 25 years. Chandgana Coal LLC controls a significant coal resource. This includes the two Chandgana tal mining licenses containing 124 million tonnes of measured resource with an average strip ratio of 0.7 to 1 and the Khavtgai uul license containing 509 million tonnes measured and 539 million tonnes indicated resource with a strip ratio of 2.2 to 1. Substantially all of Prophecy's resources are not mineral reserves; hence, they do not have demonstrated economic viability. Further information on Prophecy Coal can be found at www.prophecycoal.com.
PROPHECY COAL CORP
ON BEHALF OF THE BOARD
(i)Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this news release, including statements which may contain words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, and statements related to matters which are not historical facts, are forward-looking information within the meaning of applicable securities laws. Such forward-looking statements, which reflect management's expectations regarding Prophecy's future growth, results of operations, performance, business prospects and opportunities, are based on certain factors and assumptions and involve known and unknown risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements. These estimates and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies, many of which, with respect to future events, are subject to change and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by Prophecy.
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