COALSPUR GRANTED MINE PERMIT AND PROCESSING PLANT APPROVAL

Highlights:

  • Coalspur granted a Mine Permit by the Energy Resources Conservation Board ("ERCB")
  • Existing Processing Plant Approval also transferred to Coalspur by the ERCB
  • Mine Permit and Processing Plant Approvals further de-risk the Vista Coal Project and will underpin the current Bankable Feasibility Study ("BFS")

PERTH, Western Australia, May 13 /CNW/ - Coalspur Mines Limited ("Coalspur" or "Company") (ASX: CPL, TSX: CPT) is pleased to announce that Coalspur Mines (Operations) Ltd, a wholly-owned subsidiary of the Company, has been granted a mine permit and coal processing plant approval (the "Permits") from the ERCB in relation to the Company's Vista Coal Project ("Vista") located in Alberta, Canada.

Managing Director and CEO Gene Wusaty said, "The granting of the Permits represents a significant regulatory achievement which now allows Coalspur to progress the BFS and pre-construction planning for the Vista Coal Project with a much higher degree of certainty. As the BFS progresses, we will continue to refine the mine plan and all other technical aspects of Vista to optimize its productive potential, as well as any other required regulatory approvals."

The Permits were granted by the ERCB pursuant to the Coal Conservation Act (Alberta) as follows:

  • Mine Permit - granted to Coalspur Mines (Operations) Ltd (permit number C 2011-5) to develop a surface coal mine in the McLeod River area to be designated as Mine No. 1815;

  • Coal Processing Plant Approval - granted to Coalspur Mines (Operations) Ltd (approval number C 2011-3) to construct and operate a coal processing plant in the McLeod River area for the production of up to a maximum of 4,200,000 tonnes of clean coal per year and to be designated as Coal Processing Plant No. 8.

The receipt of the Mine Permit and Coal Processing Plant Approval completes the transfer process initiated in November 2010 following the acquisition of the McLeod River North Block and Z Block coal properties that completed in October 2010.

The Mine Permit covers an area of 4,880 hectares and stipulates that all mining and related activity be in accordance with the original 1982 applications and supplemental filings and any subsequent technical information that the ERCB may approve. Coalspur will be required to obtain ERCB approval for any technical modifications to the development plan before effecting such modifications.

Coal Processing Plant Approval No. C 2011-3 requires Coalspur to submit to the ERCB for approval prior to the commencement of construction design and location amendments to meet the requirements stipulated in the permit including clearance of the plant and ancillary infrastructure from the mining area adequate to allow mining to a minimum depth of 150 meters.  Coalspur will also be required to limit the first stage construction of the tailings pond to a 5-year capacity, investigate the merits of increasing tailings recycling and keep the ERCB informed of progress.

The Permits will expire on December 31, 2016 unless Coalspur satisfies the ERCB by no later than October 1, 2016 (unless the ERCB stipulates a later date) that construction has commenced. Construction is currently scheduled to commence in 2012.

Coalspur will work within the framework of the terms of the Permits while it progresses the current BFS (particularly in respect to the mine plan) and any other technical work. As the BFS and associated mine plan progress, the Company will seek to increase the allowable tonnage of clean coal produced under the Coal Processing Plant Approval and also apply for any other regulatory requirements necessary to develop the Vista Coal Project.

The full version of this news release is available on the Company's website at www.coalspur.com and SEDAR at www.sedar.com.

Regulatory Disclosures

For further information regarding the Vista Coal Project and Vista South Project, including a description of Coalspur's quality assurance program, quality control measures, the geology, samples collected and testing procedures in respect of the projects, please refer to the technical report on the Vista Coal Project titled "Vista Coal Project Prefeasibility Study" dated January 25, 2011 and the technical report on the Vista South Project titled "Resource Estimate for the Vista South Coal Property" dated December 15, 2010 , which are compliant with National Instrument 43-101 - "Standards of Disclosure for Mineral Projects" ("NI 43-101") and are available for review on SEDAR at sedar.com.

Competent Person / Qualified Person Statements

All scientific and technical information in this news release is based on information compiled by Mr. Eugene Wusaty, who is a Member of the Association of Professional Engineers and Geoscientists of Alberta. Mr. Wusaty is a full-time employee of Coalspur.  Mr. Wusaty has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a "Competent Person" as defined in the JORC Code, and a "Qualified Person" under NI 43-101. Mr. Wusaty consents to the inclusion of such information in this news release in the form and context in which it appears.

Forward Looking Statements

This news release contains 'forward-looking information' that is based on the Company's expectations, estimates and projections as of the date on which the statements were made.  This forward-looking information includes, among other things, statements with respect to the Company's permits and approvals, business strategy, plans, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations, mineral reserves and resources, scoping, pre-feasibility, bankable feasibility and other studies, results of exploration and related expenses.  Generally, this forward-looking information can be identified by the use of forward-looking terminology such as 'expect', 'potential', 'outlook', 'anticipate', 'project', 'target', 'likely', 'believe', 'estimate', 'intend', 'may', 'would', 'could', 'should', 'scheduled', 'will', 'plan', 'forecast', "evolve" and similar expressions. Persons reading this news release are cautioned that such statements are only predictions, and that the Company's actual future results or performance may be materially different.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information.  Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to the risk factors set out in the Company's Annual Information Form.  This list is not exhaustive of the factors that may affect our forward-looking information.  These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information.

The Company disclaims any intent or obligation to update or revise any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.



SOURCE Coalspur Mines Limited

For further information:

Gene Wusaty 
Managing Director and CEO
Telephone: +1 403 975 7901

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