FURTHER RESOURCE UPGRADE ON VISTA COAL PROJECT

Highlights:

  • Measured and Indicated Coal Resources on the Vista Coal Project ("Vista") increased by 64.9Mt and Inferred Coal Resources increased by 22.3Mt
  • Total Measured and Indicated Resources of Coalspur increased to 1,078.7Mt of which 710.2Mt is in the Measured Coal Resource category
  • New drill hole information will be incorporated into the current Bankable Feasibility Study ("BFS") and revised Coal Reserve estimates
  • Future drilling on Vista to focus on further definition of the McPherson, Val d'Or and McLeod seams and the delineation of the Silkstone seam on the north eastern section of the deposit

PERTH, Western Australia, June 14, 2011 /CNW/ - Coalspur Mines Limited ("Coalspur" or "Company") (ASX: CPL, TSX: CPT) is pleased to announce a Measured and Indicated Coal Resource upgrade of 64.9 million tonnes ("Mt") and an Inferred Coal Resource upgrade of 22.3Mt on Vista. This increases the Company's total Measured and Indicated Coal Resources to 1.08 billion tonnes ("Bt").

Commenting on the Coal Resource upgrade on Vista, Managing Director and CEO, Gene Wusaty said "The update provides further confirmation that the resource base at Vista can support the development of one of the largest export coal projects in North America. As the Bankable Feasibility Study progresses we will reassess the reserve potential of each of the coal seams in the Coalspur formation and optimize the productive capacity of Vista."

Table 1: JORC / NI 43-101 Coal Resources
 
 
Measured
(Mt)
Indicated
(Mt)
Measured & Indicated
(Mt)
Inferred
(Mt)
Vista Coal Project 658.7 326.7 985.4 304.6
Vista South Coal Project 51.5 41.9 93.3 75.0
Coalspur Total Resource 710.2 368.6 1,078.7 379.6

The current Coal Reserve estimate for Vista is 260.1Mt and includes mineable coal from the McPherson, Val d'Or and McLeod seams. The Coal Reserve estimate will be reassessed when a revised mine plan is completed as part of the current BFS.

The Coal Resource estimate upgrade on Vista was based on the following factors:

  • inclusion of an additional 49 drill holes in the geological model which includes 29 locations drilled by Coalspur (totalling 1,857m) and 20 locations previously drilled by other operators (totalling 1,583m);
  • addition of the Silkstone seam in the south eastern portion of Vista, which underlies the McPherson seam. In the previous Coal Resource estimate the inclusion of the Silkstone seam was limited to the central portion of Vista; and
  • increase in the geological boundary area to include the 1,200 hectares of coal leases recently acquired from the Alberta Government.

Vista Coal Resource Upgrade

The preparation of the Coal Resource estimate was undertaken by Moose Mountain Technical Services, ("MMTS") in accordance with the JORC Code (2004) and National Instrument 43-101 ("NI 43-101"). MMTS has had a long association with coal properties in the Hinton region and are considered to be amongst the most respected coal experts in Western Canada. MMTS has an extensive client base of major coal companies including Teck Cominco, Mitsui, Western Canadian and Anglo Pacific.

Since early 2009, MMTS has prepared numerous independent technical reports for Coalspur in relation to the Vista Coal Project and has been retained to assist in the BFS and the determination of the revised Coal Resource estimate.

The key parameters that MMTS used to conduct the Vista Coal Resource upgrade are as follows:

  • The Coal Resource is defined from four coal seams (Val D'or, McLeod, McPherson and Silkstone) that have a cumulative coal thickness of approximately 30m;
  • The four coal seams which comprise the Coal Resource have a dip to the northeast ranging from 4° - 15°, which has resulted in the Coal Resource being defined within a 10.28:1 strip ratio pit (modelled using a 20:1 incremental cut-off strip ratio);
  • A modelled pit using 45° walls and set up such that only coal within the Company's Leases is mined; and
  • A minimum mineable seam thickness of 0.5m and a minimum removable parting thickness of 0.3m (partings less than 0.3m are included with the coal seam).

The Measured and Indicated Coal Resources of the Company now total approximately 1.08Bt of low sulphur, high volatile bituminous, export quality thermal coal with resources on Vista accounting for 985.4Mt and the Vista South Coal Project ("Vista South") accounting for 93.3Mt. Further drilling is planned in the coming months to further delineate the geology of Vista South and to test for extensions to the South East of the deposit.

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 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 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 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

Organization Profile

Coalspur Mines Limited

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890