SOURCE: MMEX Mining Corporation
DALLAS, TX--(Marketwire - Oct 10, 2012) - MMEX Mining Corporation (OTCBB: MMEX) ("MMEX" or the "Company") is pleased to announce that it has received a third party comprehensive study on the transportation and infrastructure for development of coal projects in Colombia.
Upon entry into Colombia in 2010, the Company has recognized that access to export markets depends upon challenging infrastructure and transportation systems since all coal transported today from the interior metallurgical producing areas is dependent upon trucking.
With this Study, performed by an outside consultancy with significant experience in Colombia, the Company has confirmed that significant volumes of potential production can be transported at reasonable costs and at a reasonable capital expenditure to improve roadway availability. The Study presents current projected transport model costs to the two ports of Barranquilla (Caribbean and Atlantic) and Puerto Buenaventura (Pacific) of (i) Trucking only at a cost of US $51 to $57 per ton; (ii) Intermodal trucks and river barge at a cost of US $53-57 per ton and (iii) Intermodal truck and train (when completed) at a cost of US $39 to $41 per ton.
The Study also confirms that with a relatively low capital cost to build a road to by-pass existing population centers, production levels of up to 2.4 Million tons per year, the maximum within the Company's current existing permits, can be transported. By comparison, some of the largest metallurgical coal mines in Colombia currently produce 500,000 to 700,000 tons per year.
In March 2012, MMEX successfully completed an initial equity capital raise in Lima, Peru through its engagements with Lima based brokerage firms.
The Corporation continues to review potential projects in metallurgical coal in Colombia and other mining projects in Peru.
Jack W. Hanks, President and Chief Executive Officer commented today,
"This Study is a major milestone to our development plans in Colombia and significantly improves the economics of our coal projects confirming that we have the potential to produce and transport much higher volumes of met coal with lower transportation costs and capital expenditures for road infrastructure. This underscores our strategy to attract and invest more capital to develop much higher levels of production and become a major met coal producer in Colombia."
About MMEX Mining Corporation
MMEX is an exploration stage company engaged in the acquisition and development of coal and other mining assets in South America. MMEX Mining Corporation is publicly traded on the OTC market under the ticker symbol "MMEX" and is headquartered in Dallas, Texas USA. For more information please visit: www.mmexmining.com
This document may contain "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "project," "estimate" or similar expressions, it is making forward-looking statements. Forward-looking statements reflect current plans and expectations and are based on information currently available. They are not guarantees of future performance and involve risks and uncertainties, including those discussed in the Company's reports filed from time to time with the Securities and Exchange Commission. The Company assumes no obligation to update or revise any forward-looking statements or to update the reasons why actual results could differ from those projected in any forward-looking statements.