Phase #1 Project:
Swan Pond: (Permit 861-0561)
Total $150,000 Budgeted – FINANCING COMPLETED
Approximately 5 miles south of Barbourville, KY located east of St. Rt. 11 on Terrapin Branch Rd. in Knox County, KY.
37 acres & an additional 60+ acres of auger mining. Blue Gem seam is 24″ in thickness. Jellico coal seam is more than 35″ in thickness in the areas adjacent to the mine site.
Blue Gem coal seam containing approximately 15,0000 tons of coal mineable by surface contour and auger methods. Jellico coal seam mining will be added to the permit area by amendment and will add approximately 100,000 tons of coal to the permit area.
Approximately 150000 tons of Blue Gem seam presently permitted and 100000 tons of Jellico coal seam to be added by amendment to the permit.
Life Span of Project:
Two years with a monthly production rate of 7500 tons per month. Jellico coal seam will lengthen life of mine by approximately one year.
At present, Blue Gem coal of the quality present on the mine site will bring a minimum of $90/ton in the pit or greater. Auger contractor meeting already completed and contracts will be proposed upon closing.
Projected Production Rate:
7500 tons per month.
minimum of $17/ton at present sales prices. Once production begins, a higher price may be negotiated, mine must be producing coal to get the maximum price.
Issued, bonded and ready to begin mine development operations.
Condition of Mine Site:
Prior to coal production, road, ponds and ditches must be constructed. Contract miner must be added to the permit, the blasting plans must be advertised one time and a ten-day waiting period completed after the ad before the first shot is conducted. The KPDES (water) permit must be activated. MSHA plans, mine license maps submitted and safety training plans approved. Pre-blast surveys must be done on all dwellings within 1/2 mile of the blasting zone if requested by the resident. All these activities will be completed during the initial 30 days after closing the financing. Production will begin within 30 days of obtaining financing for the development costs.The Blue Gem seam present on the Swan Pond site is very valuable coal of a very high quality and in great demand. However, the high price paid for this coal seam cannot be obtained without having a producing mine so potential coal buyers can sample the coal actually being produced.