The future of an open-pit coal mining operation, that would see 70 trucks a day travel from the Yukon's Division Mountain to Skagway, rests on the results of a feasibility study due in late September, Cash Minerals Ltd. president and CEO Basil Botha said Friday.

The Toronto-based mining company is looking to truck 1.2 million tonnes of bituminous-coal from the mountain, located 90 kilometres north of Whitehorse, to Skagway to sell primarily in Asian markets beginning in late 2007.

According to Botha, Cash Minerals has a net worth of $10 million, has $3 million in the bank and more than 30 million shares on the open market.

Botha said he estimates the net-value of coal deposits at Division Mountain to be worth $75 million.

He said if the feasibility study is positive, the mine would be a '24-7, 365-day operation for as long as it lasts' that would provide jobs for 200 people and draw power off Whitehorse's power grid.

'Most of the jobs would be in trucking,' he said. 'We will be requiring energy off (Whitehorse's) grid, there may be a constraint on electricity.'

Botha said his company would not be seeking a 'sweet deal' on electricity, indicating his company would be paying market value for energy taken from the Yukon's energy supply.

In what can only be described as confusing, members in the Yukon's political circles appear to disagree with information contained in a Cash Minerals survey which states that up to 175,000 tonnes of coal could be burned to provide additional power to the territory.

Energy, Mines and Resource Minister Archie Lang recently said the Yukon has an excess amount of power and doesn't require any more.

Last week, NDP MLA Gary McRobb said the Yukon's energy surplus is only truly available in the summer months.

Premier Dennis Fentie has said that coal-fired generation would never replace hydro production, adding that there are no plans for a coal-fired generation plant in the Yukon.

Botha said he is aware of the premier's statements, saying it's the government's political privilege to explore all choices available to it.

'From the Yukon (government's) point of view, they have to look at all the options available to them,' Botha said.

Responding to questions about possible environmental concerns over the project, Botha promised there would be numerous public consultations held as well as a land-reclaimation process if the project is scheduled to move forward.

'We are planning to invite all interested parties from government right down to the public (to share their concerns).

'There will (also) be a reseeding and land reclamation process.'

Botha added that new technologies, such as lime injection, have made coal mining more environmentally friendly and that the process for cleaning the coal before shipping would only produce ash and rocks as bi-products.

'Coal is a benign product, it doesn't require any chemicals,' he said.

Cash Minerals is also working in co-operation with the Champagne and Aishihik First Nations (CAFN), the owners of the land, with the two groups having signed a letter of understanding to push the project toward production in late 2007.

'CAFN are interested in assessing the potential of our land for mining opportunities,' said CAFN Chief James Allen.

'We wish to maximize the economic benefits for our citizens through employment, training, contracting and direct participation in business opportunities which may arise from the Division Mountain coal project,' he said.

Botha said the permitting process is currently being handled by the Access Consulting Group in Whitehorse and that Cash Minerals also had several other leases in the Yukon.

In addition to the Division Mountain project, Cash Minerals also has a right to earn interest in six uranium projects in the Yukon including four in the Wernecke Mountain area in the northeastern part of the territory.