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Continental Coal 28% price spike prompts ASX price and volume query

Continental Coal (ASX:CCC, LON:COOL) received a price and volume 'please explain' from the ASX following a 28% jump to $0.25 in intra-day trading yesterday, up from $0.195 on 2 November 2011.

Continental said it is not aware of any information that has not been announced which could explain the sudden interest, but did however state:

"The company has previously announced in its quarterly report for the three months ending 30 September 2011, a number of key operational and corporate transactions that the company anticipated concluding.

Executives of the company have also undertaken an extensive promotional schedule since the release of its quarterly report.

In addition the company is also aware of a number of macro events that have occurred in recent days that may have a positive on the coal sector generally."

Continental is making solid progress with development activities and site construction works being undertaken at the Penumbra coal mine in South Africa.

First production from the underground mining operation is forecast to commence in the second quarter of 2012 with full production targeted to be achieved in the third quarter of 2012.

The Penumbra coal mine is on track to produce 500,000 tonnes per annum of a high quality export thermal coal product.