DEEPGREEN MINERALS CORPORATION NL 2000-02-24 ASX-SIGNAL-G
HOMEX - Melbourne
DEEPGREEN SHIPS FIRST COAL PRODUCTION FROM ITS PAGETON,
WEST VIRGINIA SITE IN THE US
Deepgreen advises that its wholly owned subsidiary, Deepgreen
Minerals West Virginia Inc, has shipped first coal production from
its Pageton, West Virginia, site in the US.
US Steel Mining has agreed to work within terms of an agreement under
which all coal and synthetic coal fuel produced by Deepgreen from the
Pageton Project will be placed under their direction.
Deepgreen purchased Pageton from Consolidation Coal Company, a
subsidiary of Rheinbraun of Germany. The 530 acre site contains 2.5
million tonnes of fine coal rejects and mineral outcrops of high
grade metallurgical quality Pocohontas No 3 seam coal.
Initial production has been from the coal fines pond. Contractors are
on site to commence production of raw, direct shipping grade coal
from the Pocohontas No 3 seam.
The present budget envisages production building up to an annual rate
of 260,000 tonnes of marketable coal annually. Deepgreen's coal
dredge and fine coal recovery plant, presently located at
Wollondilly, NSW, Australia, is being prepared for Shipment to
On the present schedule the dredge and plant will be delivered to
West Virginia in the final quarter of 2000. Once installed, this
equipment is expected to add another 260,000 tonnes to Pageton's
annual production capacity taking total output to in excess of
500,000 tonnes per year.
Negotiations are continuing with coal briquette manufacturers. These
discussions are restricted to briquette makers whose coal treatment
plants have qualified for synthetic fuel tax credits under Section 29
of the US Internal Revenue Services Act.
Directors view the start-up of Pageton as a major achievement.
Deepgreen has been able in a short space of time, since resuming US
rights to its technology and expertise, to acquire suitable resources
to launch a commercial coal reclamation project. It is expected that
Pageton will serve the Company as a profitable enterprise while
demonstrating to the US coal industry Deepgreen's expertise in fine
coal recovery in either reclaiming land or deferring the need to
establish new coal ponds.
In line with Deepgreen's strategy of concentrating assets in shares,
rather than operating projects, Lysander Minerals Corporation of
Vancouver has been granted an option to acquire Deepgreen Minerals
West Virginia Inc, the Wollondilly dredge and fine coal recovery
plant, and the patents and know-how of Deepgreen.
If this agreement is approved by Lysander shareholders and Canadian
authorities, and if Deepgreen achieves its agreed underwriting of
Lysander's proposed financing, Deepgreen will own 48% of Lysander,