NEW SILKSTONE SEAM INTERSECTED OVER 16KM STRIKE LENGTH AT VISTA

Highlights:

  • Analysis of initial drilling intersections have further defined the Silkstone coal seam which is currently not included in Vista's Coal Reserves

  • Preliminary observations indicate that the Silkstone seam could be present over a 16km strike length within Vista

  • Initial geological interpretation of recent drilling and previous technical studies indicate that the Silkstone seam is shallow dipping, has thicknesses up to 4.5 metres and has surface mining potential

  • Second phase development core drilling program will be aimed at providing further information for geological and coal quality modelling of the Silkstone seam

  • Historical coal quality data indicates that the Silkstone seam will be suitable for export

PERTH, Western Australia, Feb. 25 /CNW/ - Coalspur Mines Limited ("Coalspur" or "Company") (ASX: CPL, TSX: CPT) is pleased to announce that the interpretation of the first phase development drilling has indicated the potential for the Silkstone seam to extend for over a 16km strike length within the Company's flagship project, the Vista Coal Project ("Vista").

The current development rotary drilling program is aimed at further investigating the Silkstone seam and confirming its strike length and extent within Vista with an aim to defining further potential Coal Resources. The Company has intersected the Silkstone seam with eight of the rotary drill holes completed in the Vista development drilling program. The information obtained from these holes has been used to confirm the 1980's historical information on the Silkstone seam. Preliminary indications show that the Silkstone seam subcrops along a trend of over 16km and lies at a shallow dip and has surface mining potential. Results from the development drilling program and from previous geological studies indicate that the Silkstone seam is split into three sub-seams and has thicknesses up to 4.5 metres.

Two of the eight rotary drill holes were cored so coal quality and washability testing could be completed on the Silkstone seam. Historical coal quality data indicates that the Silkstone seam will be suitable for export.

It is important to note that Coal Reserves as indicated in the Pre-Feasibility Study do not include any potential mineable coal from the Silkstone seam. The significant potential strike length and cumulative coal thickness of the Silkstone seam have the potential to add to the production profile defined in the Pre-Feasibility Study. Only a small potion in the central lease area is included in Vista's Coal Resource estimate. The drilling program is focussed on greatly expanding the seam area over the remainder of Vista. Further drilling is being planned to extend the definition of the Silkstone seam to the western boundary limits of Vista.

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 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 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 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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