COALSPUR MINES LIMITED - COMMENCEMENT OF BANKABLE FEASIBILITY STUDY ON VISTA

Highlights:

  • Bankable Feasibility Study ("BFS") commenced on the Vista Coal Project ("Vista") and is scheduled for completion by December 2011
  • Coalspur has appointed Snowden Mining Industry Consultants Inc. ("Snowden"), a subsidiary of Downer EDI Limited ("Downer") which is one of the World's leading international coal engineering firms, as overall project manager for the BFS
  • The BFS will build on the strong technical and economic results from the recently completed Pre-Feasibility Study ("PFS") and will become the blueprint for developing one of North America's largest export thermal coal projects. This will establish the Hinton region as a strategic supplier of thermal coal to the World's major emerging markets
  • Snowden will be assisted by a number of leading coal industry firms that all possess essential expertise in the design and construction of surface coal operations in Canada

PERTH, Western Australia, April 11 /CNW/ - Coalspur Mines Limited ("Coalspur" or "Company") (ASX: CPL, TSX: CPT) is pleased to announce that the BFS for Vista has now commenced and is scheduled for completion by December 2011.

The BFS will build on the substantial technical and feasibility studies already undertaken on Vista, including the recently completed PFS which confirmed Vista's technical and economic viability to operate with strong cash margins.

Commenting on the commencement of the BFS, Mr Gene Wusaty, Managing Director and CEO, said "This is an exciting time for the Company and all of its stakeholders as we have now begun the final stage before we formally commence construction at Vista. The PFS confirmed the economical viability of Vista and the BFS will help maximize its potential to be a strategic player in the world export thermal coal market."

"The appointment of Snowden was a natural selection for us and clearly the best fit for the overall project manager's role. Snowden has a highly credentialed mining team based in Calgary and has existing close working relationships with the other firms that will perform specialist functions for the BFS. Snowden are also part of the international engineering and infrastructure group Downer, who have already worked on our PFS and are experts in the design and construction of coal wash plants around the world."

"We have already selected and completed the appointment of an experienced owner's team, all of whom have extensive project management and coal mine operating experience in Canada, and will now combine with Snowden to rapidly progress completion of the BFS."

Scope of the BFS

The BFS is scheduled for completion by December 2011 and will focus on:

  • Annual production capacity
  • Mine engineering and scheduling
  • Coal quality
  • Geology and resource modelling
  • Coal crushing and handling
  • Coal processing and thermal drying
  • Infrastructure, transport and logistics
  • Geotechnical, dewatering and site water management
  • Operating and capital cost assessment
  • Market price forecasting
  • Mine and environmental permitting

Environmental permitting, geology and resource estimation will remain the responsibility of the preferred contractors already in place. Millennium EMS Solutions Ltd is responsible for the environmental and regulatory considerations and Moose Mountain Technical Services will provide the geology and resource estimation.

BFS Consortium

Following the completion of a comprehensive and competitive tender process, the BFS was awarded to Snowden, a subsidiary of Downer who will act as the overall project manager for a consortium of highly experienced coal industry firms. Coalspur has a long standing relationship with Downer from their work on the Pre-Feasibility Study that was completed on Vista in 2010.

The firms chosen to participate in the BFS are internationally recognized and will provide personnel who have significant coal industry experience. The selected project team members from each firm are specialists in preparing various aspects of coal mining studies required for the BFS.

Snowden - Overall Project Manager

Snowden has been selected to act as the overall project manager on the BFS given their proven track record in providing clients with the information and solutions necessary to optimize their investment in the resources sector. They will be responsible for the overall project management, financial analysis and creation of the NI 43-101 compliant BFS documentation. Snowden has 24 years of international experience in providing consulting services, technology solutions and technical training to the mining and related sectors. In the last four years Snowden has completed feasibility studies on three large scale coal projects located in South Africa, Mozambique and New Zealand. Snowden has selected a project management team comprised of Canadian based geologists and mine engineers who have experience designing and managing open pit coal mines in both North and South America.

Marston Canada Ltd. ("Marston") - Mine Engineering

Marston is a full-service international geological and mining consulting firm that brings over 30 years of corporate experience in geologic and mine modelling, design, engineering and management experience. Marston brings relevant recent experience in successfully integrating draglines with large complex truck-shovel operations. Their worldwide experience includes projects in North America, Australia and South Africa. Marston is responsible for the mining engineering aspects of the BFS as well as support for the mine license application.

CPG Resources - QCC Pty Ltd ("QCC"), a subsidiary of Downer EDI Limited - Processing Plant and Thermal Dryer Design

QCC was chosen to participate in the BFS on the basis of their diligence and expertise that they demonstrated during the work they performed on the PFS. QCC's work for the BFS will include the assurance that the clean coal products will meet the required specifications of future customers. QCC will work closely with CWA on all of the material handling and infrastructure aspects of the BFS. QCC has had significant involvement with a large number of operational and feasibility studies for other coal deposits in Australia, New Zealand, South Africa, Indonesia, Bangladesh, China, Mongolia and Russia.

CWA Engineers Inc. ("CWA") - Infrastructure design

CWA is a premier consulting engineering and project management firm with a track record of successfully delivering multi‐discipline engineering projects in Canada. CWA's expertise not only includes feasibility studies but also full service project and construction management. CWA has recent engineering and construction experience in the coal fields of northeast British Columbia and brings significant Canadian cold weather experience. CWA is responsible for all infrastructure design and the raw and clean coal handling, stockpiling, reclaim systems and will provide input to all of the QCC designs.

Klohn Crippen Berger Ltd. ("KCB") - Geotechnical

KCB has 30 years of experience in coal mining projects in Western Canada and has established offices in Calgary and Edmonton, Alberta. KCB is responsible for all geotechnical aspects of the BFS, including foundation design for infrastructure, the processing facility, and waste rock disposal sites, as well as dragline stability and open-pit highwall design and monitoring criteria. KCB is also responsible for pit wall and footwall dewatering design, process water supply, storage and recycle design, site water management design, and a sustainable water management plan for mine closure.

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 Project, including a description of Coalspur's quality assurance program, quality control measures, the geology, samples collected and testing procedures in respect of the Project please refer to the technical report on the Project titled "Vista Coal Project Prefeasibility Study" (the "Technical Report") which is compliant with National Instrument 43-101 - "Standards of Disclosure for Mineral Projects" ("NI 43-101") and is 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 J. Morris, who is a Member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta.  Mr. Morris is a full-time employee of Moose Mountain Technical Services, who are consultants to Coalspur. Mr. Morris 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. Morris 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 mining engineering and Recoverable 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 business strategy, plans, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations, mineral reserves and resources, scoping, pre-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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