Monday, January 16, 2012

Compliance Energy - An update on this most promising company

Compliance Energy (TSXV:CEC) is a company I have written about several times now, and it remains a company that I believe will make it to production. The company has performed testing well above and beyond what the prerequisites are for going forward, towards the environmental application process, in regards to their flagship project known as the Raven Underground Coal Project. For anyone who may not have knowledge of who Compliance Energy is, and what it is they are attempting, I will refer you to the company website which can be found at www.complianceenergy.com, and be sure to click on the link to the left side entitled "Corporate Fact Sheet - November 2011". This report has the latest NI43-101 compliant figures.

Compliance Energy has taken steps to ensure that they have left nothing untested in regards to the environmental requirements. They are currently progressing through the Environmental Application Process. This is an arduous task at best, and takes a considerable amount of time, as the government reviews all information concerning the project in its entirety. This includes of course, the environmental impact, as well as the impact it will have on the surrounding communities.  Compliance Energy has submitted the pre-application portion, with the final application being completed and ready for submission over the coming months. This final application portion will potentially be ready by mid-year, with hopes that it may be ready sooner. To allow you to try and visualize just how intensive the paperwork is, for this type of application, I will tell you it is not necessarily uncommon for the papers to stack up to nearly a meter high. For anyone to think that this is not a very in-depth process to undertake, is to be grossly mistaken.

This does tend to be a tedious time of waiting, and a time of little news. There is other news that I find quite encouraging though. North Island College (NIC) has announced that they will be receiving funding from the Employment Skills Access Program, a federal-provincial program developed to provide unemployed workers with general employment or job-specific skills so they can transition to the workforce. This funding will cover many types of employment, varying from carpentry, woodland harvesting, integrated core resource skills training, leadership and capacity building for First Nations Communities. What there is truly a need for is trained mining personnel, and the government has added this to the list. With mining contributing nearly $9B to the BC economy, and the current shortage of people who have the required training for this type of work, this is most welcome news.  http://www2.canada.com/courierislander/news/letters/story.html?id=e307d440-d8d3-4f9b-865e-472a03317fef
The shortage of skilled mining personnel is not something that is a local problem, but rather is much more widespread and its effects are felt virtually worldwide. This training will enrich many lives by allowing individuals to gain possible employment in a high income earning industry. It is reassuring to see that the government is doing their part, and offer people a means to gain the skills needed to better their lives, and the lives of their families.

Another open letter I came across recently is of particular interest. This is an open letter from the Honourable Joe Oliver, Minister of Natural Resources. http://www.nrcan.gc.ca/media-room/news-release/2012/1/3520
In this letter, the Honourable Joe Oliver makes a statement that is extremely accurate in its attempt to hit directly to the root of the problem facing many industries today. Of course it drew massive amounts of protest from virtually all environmental groups. While the environment needs to be watched over, and very carefully I might add, it is becoming increasingly difficult to get any projects approved. This letter is a very blunt statement that I believe touches to the very core of the underlying issues. While the fact is that we need to protect and be conscious stewards of our environment, it is also necessary to harvest wood, minerals, metals, oil, and gas in order for our lives to continue as we know life. Short of expecting everyone to revert back to the days of cave dwelling, how can we drive cars, live in houses, build bridges, and produce the innumerable items that we have come to view as normal living. Environmental stewardship is something that Compliance Energy holds as highly important, which is the reason they have spent millions on the amount of testing they have performed to make every possible attempt to mitigate any environmental impact.

While the Raven Project is Compliance Energy's flagship operation, the company also owns several additional properties on Vancouver Island. http://www.complianceenergy.com/index.php?id=115
Compliance Energy has received permits to drill on 2 of these properties. http://www.complianceenergy.com/index.php?id=107

http://www.complianceenergy.com/all_news/110907_CEC_Press%20Release.pdf
The company has stated that all planned drilling has been completed, with the results expected towards the end of Jan. 2012 - beginning of Feb., 2012. This timeline is approximate, and it is of course ultimately dependent upon the labs schedule. Both of these properties hold excellent potential. While some analysts consider that copper supply may not fall into a major shortfall as was previously thought, it is considered to potentially stay rather stable. Of course the next time the International Copper Study Group meets to discuss any changes to the forecast of copper going forward will be in April, 2012 in Lisbon, Portugal. There are others who have adjusted their forecasts also including Goldman-Sachs. Even with these latest adjustments, I think copper will remain strong through the long-term. http://www.commodityonline.com/news/goldman-sachs-cuts-2012-copper-forecast-by-over-5-45181-3-1.html

Copper is of course one of the products hoped to be found in both the NIC and the Camp Lake properties. However, in the case of the NIC property there is also the hope of proving up gold and silver as well, when looking at what the chip and grab samples were. In the case of the Camp Lake property there is the hope of finding molybdenum as well as copper.

All in all I believe that Compliance Energy will begin to show us that there are many avenues of value to this company as we start into 2012, and as the year progresses I think we can expect more momentum to the news we will receive. Another item of interest is the fact that Compliance Energy holds approximately 2.2 million shares of Copper Mountain Mining Corp. (TSX:CUM).

For those interested in considering Compliance Energy as  a potential investment choice, I urge everyone to do their own due diligence and seek the advice of a professional advisor. A couple of links that will be useful as a starting point in conducting this research are included here, http://www.complianceenergy.com/index.php?id=27

http://www.theravenproject.ca/index.php

For disclosure purposes I have received no compensation of any kind for this post or for my opinions. All opinions contained herein are strictly my own. I own shares of Compliance Energy.

6 comments:

  1. 400 people showed up at Buckley Bay to protest the Raven Coal mine, and thousands have sent in comments in opposition. The problem with the Raven mine is that it is located on a bedrock aquifer which is uphill of the community of Fanny Bay as well as a $20 million/year shellfish industry. There is no way that the people of the Comox Valley will allow this mine and the Bear mine to proceed.

    ReplyDelete
    Replies
    1. The coal seam they are looking to mine is 600m below the surface at Baynes Sound. Its just a bunch of eco-sensitive, champagne socialist, nymby's against this project and once the facts are known its game on. This will be a mine by 2013-14.

      Delete
  2. Compliance Energy didn't do their homework and it shows:
    1. The proposed coal mine is above a 100 year old shellfish industry.
    2. Cowie Creek was previously protected by a mining company because it is the drinking water source for a whole community.
    3. The 80,000 ton enclosed coal storage facility is susceptible to spontaneous combustion and explosion.
    4. This storage facility location would be on a wharf that does not meet seismic code.
    5. This storage facility would be in Canada’s worst Tsunami Inundation Zone (see the Tsunami of 1964)
    6. The coal port would be located in a Duck Unlimited Estuary Sanctuary for Blue and Red listed species.
    7. The coal port would be at the mouth of the 3rd largest salmon spawning river in BC
    8. The receiving facility would be located across the street from family homes (3 babies live on 1st Ave.)
    9. Hwy 4 is a narrow winding 2 lane road that carried 1 million tourists to Tofino. Tofino is livid about this – their supplies, emergency vehicles etc. rely on the safety of this already treacherous road that takes lives all the time.
    10. 9 double b-train trucks an hour 24-7 past our hospital, retirement homes, cafes, farmers market, hotels etc. Think again – this isn’t going to happen, period.
    Stacey Gaiga
    Coal Free Alberni
    Port Alberni, BC
    SEE: www.coalwatch.ca
    www.coalfreealberni.ca

    ReplyDelete
  3. Oh Stacey better sell out and move away...The Coal Trucks are acomin to town

    ReplyDelete
  4. Stacey, as usual you are a few facts short of the truth. For the record, could you please inform everyone when was the last spontaneous combustion or explosion incident in North America. I too think its time for you to move away because again you personal little view scape will be altered and there's nothing you can do about it.

    It's not like you can chop down trees to make the view better now, is it?

    ReplyDelete
  5. Let's see if the application, soon to be released will describe legitimate mitigation to avoid the plethora of identified significant environmental impacts associated with the project and let's see what the new NDP government have to say about a more thorough environmental review process with public hearing.
    600 forever jobs for 150 at best temporary jobs - I think not.
    If you believe in what you say, why do you hide behind your typewrite "anonymously".
    Truth - it's all about truth.
    Stacey

    ReplyDelete