UPDATE 1-Grand Cache Coal Q3 profit drops

* Q3 EPS C$0.04 vs C$0.38 yr ago

* Rev down 32 pct to C$62.4 mln

* Sees 2010 coal sales 1.6 mln-1.8 mln tonnes

Feb 10 (Reuters) - Grand Cache Coal Corp's GCE.TO third-quarter profit fell 88 percent, hurt by lower coal prices. Net income for the quarter ended Dec. 31 was C$4.3 million, or 4 Canadian cents a share, compared with C$36.8 million, or 38 Canadian cents a share, a year ago.

Revenue fell 32 percent to C$62.4 million. The company said average third-quarter sales price was C$134 per tonne, versus C$254 per tonne in the same period last year.

Analysts on average were expecting the company to earn 5 Canadian cents a share, on revenue of C$53.9 million, according to Thomson Reuters I/B/E/S.

The company said it sees 2010 metallurgical coal sales volume of 1.6 million to 1.8 million tonnes.

Shares of the Calgary, Alberta-based miner closed at C$5.69 Tuesday on the Toronto Stock Exchange. ($1=1.066 Canadian Dollar) (Reporting by Abhiram Nandakumar in Bangalore; Editing by Aradhana Aravindan)