QUARTERLY REPORT TO THE AUSTRALIAN SECURITIES EXCHANGE FOR THE DECEMBER 2010 QUARTER

PERTH, WESTERN AUSTRALIA, Jan. 31 /CNW/ - Coalspur Mines Limited ("Coalspur" or "Company") (ASX: CPL, TSX: CPT) is pleased to present its quarterly report for the period ended December 31, 2010.

Highlights:

  • Completed the first major technical study on the consolidated Vista Coal Project ("VCP" or "Project") with the results of the Pre-feasibility Study ("PFS") confirming the technical and economic viability of the VCP and demonstrating its capacity to operate with strong cash margins, including:
    • forecast annual production of 9.0Mtpa saleable coal and a long mine life of 31 years;
    • Initial Proven and Probable Marketable Coal Reserves of 260Mt defined from a Recoverable Coal Reserve of 522Mt; and
    • Strong economics with low operating cash costs of C$51/t free-on-board Ridley Island Coal Terminal ("FOB Ridley") in the first 10 years.
  • Increased the Company's Measured & Indicated Coal Resources to 1.01 Billion tonnes ("Bt"), following:
    • an increase in the Measured & Indicated Coal Resources on the VCP by 107.9Mt to 920.5Mt and increase in the Inferred Coal Resources by a further 189.2Mt to 282.3Mt; and
    • an initial Measured & Indicated Coal Resources on the Vista South Coal Project ("Vista South") of 93.3Mt based on the first phase of drilling results covering on 16% of the project area and an Inferred Coal Resource of 75Mt was also recorded;
  • Completed a successful listing on the Toronto Stock Exchange, with the Company's Shares commencing trading on the TSX on October 27, 2010.
  • Appointed two new directors, both highly regarded by the North American capital markets:
    • Colin Steyn - has over 30 years experience in the resources and was previously President and CEO of Toronto based LionOre Mining International Limited ("LionOre") prior to it being acquired by Norilsk Nickel in 2007; and
    • Dennis Turcotte - a highly respected Canadian based corporate executive, and in 2006 was recognised as Canadian Business Magazine's Top CEO. Mr. Turcotte is a Professional Engineer with over 25 years experience and is highly regarded by the North American investment community and brings to the Board his extensive experience as a senior executive of TSX listed and commodity based companies.

Going Forward

The Company is now focused on capitalising on the substantial technical and corporate progress made in December 2010 quarter. Activities in the coming months will include:

  • Formal commencement of a Bankable Feasibility Study for the VCP;
  • Drilling at VCP to define the Silkstone seam which has not been included in the mineable reserves;
  • Drilling of Core Holes to investigate the underground longwall potential at VCP;
  • Completion of the bulk sampling program on the VCP;
  • Commencement of the second phase of drilling at Vista South, with a view to expanding the resource base and area of the project;
  • Continued progression of permitting, public consultation and mine licensing on the VCP; and
  • Following the recently completed PFS, marketing and analyst tours in North America to further lift the profile of Coalspur in North American capital markets.

A complete version of the Company's "Quarterly Report to the Australian Securities Exchange for the December 2010 Quarter" is available on the Company's website at www.coalspur.com and SEDAR at 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 "Resource Estimate for the Vista Coal Property" (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.

The scientific and technical information in this news release that relates to Exploration Results, other than information relating to Coal Resources and Coal Quality, 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

Profil de l'entreprise

Coalspur Mines Limited

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.