It is reported that Cardero Resource Corp consultant estimates the Carbon Creek coal deposit in the Peace River district of northeast BC could support construction of a USD 301 million mine and related infrastructure.

The mine would take three years to build and would have a 30-year production life, based on various assumptions used in the preliminary economic assessment compiled for Cardero by Norwest Corp.

The assessment looks at various scenarios. Assuming metallurgical coal at USD 185 per ton the mine would pay back the pre-construction costs at the end of the third year of production.

The Northwest report envisages construction of an open pit mine followed by an underground mine which would be operational two years after the surface mine begins production.

The coal would be trucked 69 kilometres to a Canadian National rail line and then be transported to ports at either Vancouver or Prince Rupert, BC to be loaded on ships that would take it to Pacific Rim markets.

Cardero owns 75% of the Carbon Creek joint venture. It acquired the property with the acquisition of Coalhunter Mining Corp last year.

(Sourced from www.castanet.net)