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CALGARY, Dec. 17 /CNW/ - Alter Nrg Corp. (the "Company" or "Alter Nrg") is pleased to announce that further independent assessment of the Fox Creek Coal Resource has resulted in an increase in the previously announced resource values from 770 million tonnes to 847 million tonnes. This revised assessment of the Fox Creek Coal Resource translates into 468 million tonnes of proven plus probable reserves, calculated using a maximum mining cost of $30 per tonne, which corresponds to an average of less than $20 per tonne mining cost. The Fox Creek Coal Resource is the cornerstone of the Company's Fox Creek Polygeneration facility which is described further below and if pursued is anticipated to produce sulfur free diesel, naphtha, power, carbon dioxide and various chemicals and is expected to be operational between 2013 and 2015.
Alter Nrg commissioned an independent evaluation by Norwest Corporation of the Company's Fox Creek coal property located in central Alberta. The evaluation, prepared in accordance with National Instrument 43-101 and dated November 30, 2007, reports 847 million tonnes of measured and indicated coal in-place for the Fox Creek property, as outlined in the table below:
FOX CREEK COAL PROJECT
COAL RESOURCE SUMMARY
AS AT NOVEMBER 22, 2007
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IN-PLACE SURFACE MINEABLE COAL RESOURCES
20:1 STRIP RATIO (KTONNES)
ASTM GROUP --------------------------------------------------
MEASURED INDICATED INFERRED
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Subbituminous C 474,023 373,364 96,722
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Total 847,387 96,722
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A coal reserve is the economically mineable part of a Measured or Indicated coal resource demonstrated by a Preliminary Feasibility Study, which includes information on mining, processing, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A mine design and financial analysis have been completed for the project as part of a preliminary feasibility study. The saleable surface mineable reserves identified in the study are 468 million tonnes and are based on a maximum mining cost of $30 per tonne, which corresponds to an average mining cost (capital and operating) of less than $20 per tonne. A total of 90% of the 1 of 3 reserves, or 421 million tonnes, would be mineable at an average extraction cost of $18.12. The distribution and classification of the reserves are listed in the table below:
FOX CREEK COAL PROJECT
SURFACE MINEABLE COAL RESERVES SUMMARY
AS AT NOVEMBER 22, 2007
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SURFACE MINEABLE COAL RESERVES
(KTONNES)
AREA ASTM GROUP ------------------------------------------
PROVEN PROBABLE
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Fox Creek Area Subbit C 268,205 199,872
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Total 468,077
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The foregoing information is a summary only of certain of the information contained in the Norwest Report. Reference should be made to the complete text of the Norwest Report for a further discussion of the key assumptions, parameter and methods used to estimate the mineral resources and mineral reserves as well as the methods used to verify the data disclosed. The full Norwest Reserve Report is available on SEDAR at www.sedar.com.
The Fox Creek Coal Resource is the cornerstone of the Company's planned Fox Creek Polygeneration facility which is anticipated to produce sulfur free diesel, naphtha, power, carbon dioxide and various chemicals and is expected to be operational between 2013 and 2015. The planned Polygeneration facility intends to capture the Carbon Dioxide and sell it to nearby oilfields for use in their enhanced oilfield recovery projects. The coal mining costs and reserve information is consistent with the economic modeling done by the Company to date. The Fox Creek Polygeneration Facility has commenced its regulatory process preparation and core hole drilling program to provide data for detailed engineering design, with the anticipation of filing its preliminary disclosure document in 2008. The regulatory process, in conjunction with detailed engineering, is expected to take approximately 3 to 4 years followed by an approximately 2 to 3 years construction period. The Company will be soliciting input from potential strategic partners over the next 12 months to further determine the optimal project parameters including the anticipated production output and project structure.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Advisory Respecting Forward-Looking Statements:
This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "confident", "might" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the following: the development potential of the Company's properties; the estimation of mineral reserves and resources; the timing and amount of estimated future production; costs of production; capital expenditures; permitting time lines; mining or processing issues; currency exchange rate fluctuations; environmental risks; unanticipated reclamation expenses; ability to finance; risk of obtaining regulatory approvals; ability to find joint venture partners; engineering and design risk; fluctuation in commodity prices and other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release.
The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties including but not limited to:, unexpected events during construction, and start-up; variations in coal grade, tonnes mined, crushed or milled; delay or failure to receive board or government approvals; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of commodities; possible variations in coal reserves, quality or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labor disputes and other risks of the mining industry; delays in the completion of development or construction activities, as well as those factors discussed in or referred to under the heading "Risk Factors" in the Company's Prospectus dated April 10, 2007 available at www.sedar.com which could cause actual results to differ materially from those anticipated and described in the forward-looking statements. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements.
The Company cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information and statements contained in this news release speak only as of the date of this news release, and the Company assumes no obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.