Jul 11 2012
Colombia Energy Resources, Inc. (OTCBB: CERX), a metallurgical coal exploration and production company operating in the Republic of Colombia, has begun making shipments from its Ruku mining complex after temporarily halting production earlier this year to make repairs and safety upgrades and to improve security at the site.
Since the Company restarted production on April 17, the production rate at Ruku has increased from prior levels of about 1,500 tonnes per month. CERX is targeting coal production from Ruku of greater than 7,000 tonnes per month by year end.
"With support from the federal and local provincial government, along with an active community outreach and education program, we are confident that our responses to the concerns and issues expressed by the local population are being effectively conveyed and that Ruku will remain in production on a consistent basis," said Ronald G. Stovash, president and CEO of Colombia Energy Resources. "The rehabilitation of Ruku has made it a safer, more economical and more productive facility, with this largely due to CERX introducing modern practices and policies for mining operations."
The company began shipping coal on June 15, with over 2,800 tonnes shipped to-date. Revenue from the initial sales will be reported in the company's second quarter financial statements.
The Ruku mining complex is located in the central portion of Colombia in the provincial department of Boyaca. The project contains four coal leases. Current production comes from a mine (#010-91) that is approximately 24.5 hectares (~60 acres) in size and has been in production for more than 18 years. Production from the Ruku mining complex has been supplying local customers with metallurgical coal.
Management issued its first 43-101 resource report on the Ruku mining complex earlier this year, which demonstrated 4.2 million tonnes of resources.
For additional information about Colombia Energy Resources, contact Liolios Group at 949-574-3860 or email [email protected].
About Colombia Energy Resources, Inc.
Colombia Energy Resources (OTCBB: CERX) is a metallurgical coal exploration and mining company. CERX is exploring coal deposits and developing coal mines at company controlled mining concessions in the interior region of Colombia. The company currently controls mining concessions underlying approximately 25,000 acres of land in the Republic of Colombia, which is the world's tenth largest producer and fourth largest exporter of coal. The country also has the largest reserve base in South America with an estimated 7 billion metric tons (MT) of recoverable reserves and 17 billion MT of potential reserves.
The company plans to implement international mining best practices at its properties in Colombia, as it becomes a leading consolidator in the Colombian metallurgical coal market. CERX's team of executives, advisors and partners is comprised of experienced entrepreneurs and business professionals from the U.S. and Colombia, with extensive experience in coal mining as well as substantial industry relationships.
For more information, visit www.colombiaenergyresources.com.
Forward Looking Statements
This release contains forward-looking statements regarding CERX's future plans and expected performance based on assumptions the Company believes to be reasonable. A number of risks and uncertainties could cause actual results to differ materially from these statements, including, without limitation, the success rate of business development efforts, exploration efforts and the timeliness of development activities, fluctuations in coal and energy prices, confirmation of estimated resources, and other risk factors described from time to time in the Company's reports filed with the SEC. Such risks also include the restart of mining operations at the Ruku Mining Complex, which depends on factors not under the company's control and therefore there is no assurance it will occur as anticipated. In addition, the Company operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond the Company's control. Colombia Energy Resources, Inc. undertakes no obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise.
Cautionary Note to U.S. Investors—The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "resources," that the SEC guidelines strictly prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosure in our annual report on Form 10-K for the year ended December 31, 2010, File No. 000-32735, and in subsequent filings with the SEC. You can review and obtain copies of these filings from the SEC's website at www.sec.gov/edgar.shtml.
Company Contact: Daniel Carlson Executive Vice President [email protected] Tel 415-460-1165
Investor Relations: Liolios Group, Inc. Justin Vaicek [email protected] Tel 949-574-3860
SOURCE Colombia Energy Resources, Inc.