COALSPUR MINES LIMITED - ADDITIONAL DRILLING IN VISTA SOUTH CONFIRMS FURTHER MINERALIZATION OUTSIDE EXISTING RESOURCE MODEL

Highlights:

  • Drill results on Vista South confirm additional mineralization beyond the existing resource model

  • Results from additional 10 rotary holes and one core hole indicate significant cumulative coal intercepts of up to 28m in the northern limb of the Entrance Syncline

  • Information from the recent drilling will be utilized to further assess coal quality and update the existing Coal Resource estimate on Vista South

  • Additional drilling on Vista South will focus on testing for extensions of the coal structure in the northern limb of the Entrance Syncline

PERTH, Western Australia, May 19 /CNW/ - Coalspur Mines Limited ("Coalspur" or "Company") (ASX: CPL) (TSX: CPT) is pleased to announce that it has recently completed additional drilling on the Vista South Coal Project ("Vista South") which has confirmed further mineralization outside the current resource model. The results from the recent drilling will be utilized to increase the understanding of the geological structure and coal quality and update the existing Coal Resource estimate on Vista South.

The recent drilling on Vista South focused on the central portion of the Entrance Syncline and established additional significant coal intercepts beyond the existing resource model. Select intercepts include:

Vista South Drill Intersections
Drillhole Cumulative Thickness (m)
CPG10-37 28
CPG10-47 24
CPG10-77 21
CPG10-78 24
CPG10-78C 19

Note: Cumulative thicknesses represent estimated true thicknesses

Commenting on the ongoing exploration activity in Vista South, Gene Wusaty, Managing Director and CEO, said: "We are very pleased with how the ongoing exploratory drilling has progressed at Vista South. Each stage of the drilling program has provided additional positive indications that Vista South hosts significant coal resources and we look forward to the results from further exploration activities. We expect the results of additional resource modeling in mid-2011 and anticipate an increase in the estimated Coal Resources on Vista South."

The recent drilling commenced in March 2011 and comprised 10 rotary holes and one core hole. The core hole intersected the Val d'Or seam and the core sample has been shipped to ALS Laboratory Group in Vancouver, BC for quality testing. The drillhole results from the recent drilling will be sent to Moose Mountain Technical Services who will complete an updated JORC (2004) and NI 43-101 compliant Coal Resource estimate on Vista South. The Company expects to receive the coal quality results and the updated Coal Resource estimate progressively by mid-2011.

Analysis of the drilling results has indicated that through fault repetition the thickness of the McPherson seam is up to 28m in certain parts of the northern limb of the Entrance Syncline. The Company is currently analyzing the drilling results to increase its understanding of the geological structure and the surface mining potential on Vista South.

The Company plans to conduct additional drilling on Vista South in the coming months, which will incorporate the increased geological understanding from the recent drilling activity. The additional drilling will consist of approximately 15 to 20 drill holes which will further define the geological structure and test for extensions of the coal structure along the northern limb of the Entrance Syncline.

Vista South currently hosts a Measured & Indicated Coal Resource of 93.3 million tonnes ("Mt") and an initial Inferred Coal Resource of 75.0Mt. The current Coal Resource estimate is based on the Company's initial drilling program which occurred in 2010 and was confined to the North West portion of the project area. The updated Coal Resource estimate, which is expected in mid-2011, will incorporate data from drilling activity that has occurred since the initial resource estimate which was announced in November 2010.

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

The information in this news release that relates to Coal Resources is based on information compiled by Mr. Robert F. Engler, who is a Member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta.  Mr. Engler is a full-time employee of Moose Mountain Technical Services, who are consultants to Coalspur. Mr. Engler has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a "Competent Person" as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' ("JORC Code"), and a "Qualified Person" under NI 43-101. Mr. Engler consents to the inclusion of such information in this news release in the form and context in which it appears.

The information in this news release that relates to Coal Reserves is based on information compiled by Mr. Robert Fong, who is a Member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta. Mr. Fong is an associate of Moose Mountain Technical Services, who are consultants to Coalspur. Mr. Fong has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a "Competent Person" as defined in the 2004 Edition of the JORC Code, and a "Qualified Person" under NI 43-101. Mr. Fong consents to the inclusion of such information in this news release in the form and context in which it appears.

All other Exploration Results and 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, 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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