The Toronto Stock Exchange-listed company operates the Willow Creek Mine and wash plant in British Columbia and has been making commercial coal shipments since September 2004.

The company last closed at $C0.35, down 18%. The company had reached a 52-week high of $C4.65.

Recently the company announced its coking coal reserves contained three times more oxidised coal than previously thought. Oxidised coal will equal 113,000 tonnes out of total run of mine output of 482,000t during the last three months of this year. The oxidised coal will most likely be sold as thermal coal – at a lower price to coking coal.

Pine Valley has also hired an independent consulting firm to study the company’s coal washing and handling processes to identify methods to improve the wash plant’s overall coal recovery.

The company said the recommended plans may involve capital expenditure, but a value is yet to be identified.

Good news for the company was announced late last week with Pine Valley and its mining contractor, Tercon Mining, negotiating a new contract that will run through to June 2007.

“We are very pleased with this agreement because it provides a stable mining situation for an extended period,” Pine Valley chief Bob Bell said.