Nashville, TN., May 25, 2017 (GLOBE NEWSWIRE) — First Colombia Gold Corp. (OTCPink: FCGD) announced today their preliminary projections on their newly acquired coal lease located at 12964 S. Hwy 421 Manchester, Kentucky 40964. The company obtained lab analysis on several coal samples taken from this lease to determine the quality and specification the coal would fit and could be reliably marketed and sold. The lab analysis demonstrated that the coal within the Haddix seam had less than 5% ash and had a Btu of more than 12,000. Based upon this specification and permits that are already in place which include three seams, the Haddix, Fireclay and Amburgy totaling more than 1 million tons of coal, preliminary expectations are that this coal could bring in excess of $50 per short ton. Additionally, the company estimated that their mining costs would be between $40 and $42 per short ton.
Jason Castenir, CEO of First Colombia Gold Corp. stated, “This lease was in operation in early 2016, but at the time, coal was only selling for between $38 and $40 per short ton which caused the operator to take huge losses. Today’s prices give us nearly $10 per ton of profit. We believe that with the current strength in the coal markets and what appears to be a long term rebound, that the profit margins are stable and will be strong enough to sustain operations and really allow the company to grow and expand their footprint within the coal industry.”
The site and operating plan will focus initially on the Haddix Seam which ranges in thickness from 48 inches to 55 inches and will be mined using the area mining method. This seam has an existing permit in place which includes 300,000 tons of recoverable coal. The mine location will give First Columbia Gold Corp, the option to sell the coal through either the Eastern Kentucky Market or through access to the Norfolk Southern Rail system. Mr. Castenir further commented, “In our model, we would like to use the coal located within reasonable distance of the Norfolk Southern’s Cincinnati to Chattanooga line to provide a wider market for the coal. We believe that the numbers will allow us to develop significant infrastructure around this operation that could add additional profit centers in the future.”
This release contains forward-looking statements that are based on beliefs of First Colombia Gold Corp. management and reflect First Colombia Gold Corp.’s current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities and Exchange Act of 1934, as amended. When we use in this release the words “estimate,” “project,” “believe,” “anticipate,” “intend,” “expect,” “plan,” “predict,” “may,” “should,” “will,” “can,” the negative of these words, or such other variations thereon, or comparable terminology, are all intended to identify forward looking statements. Such statements reflect the current views of First Colombia Gold Corp. with respect to future events based on currently available information and are subject to numerous assumptions, risks and uncertainties, including but not limited to, risks and uncertainties pertaining to development of mining properties, changes in economic conditions and other risks, uncertainties and factors, which may cause the actual results, performance, or achievement expressed or implied by such forward looking statements to differ materially from the forward looking statements. The information contained in this press release is historical in nature, has not been updated, and is current only to the date shown in this press release. This information may no longer be accurate and therefore you should not rely on the information contained in this press release. To the extent permitted by law, First Colombia Gold Corp. and its employees, agents and consultants exclude all liability for any loss or damage arising from the use of, or reliance on, any such information, whether or not caused by any negligent act or omission. This press release incorporates by reference the Company’s filings with the SEC including 10K, 10Q, 8K reports and other filings. Investors are encouraged to review all filings. There is no assurance First Colombia Gold Corp. will identify projects of merit or if it will have sufficient financing to implement its business plan. There is no assurance that the Company’s due diligence on the potential acquisition of oil and gas assets will be favorable nor that definitive terms can be negotiated. Information in this release includes representations from the private companies referred to which has not been independently verified by the company. A downturn in oil prices would affect the potential profitability of the proposed acquisition negatively.