Coalspur Mines Limited (ASX:CPL) Independant Study Confirms Coal Quality At Vista Coal Project In Alberta, Canada
Perth, Aug 10, 2010 AEST (ABN Newswire) - The Directors of Coalspur Mines Limited (
ASX:CPL) (PINK:CSPZF) are pleased to announce the completion of work on a coal quality study on the Company's Vista Coal Project (the "Project") located in Alberta, Canada. The program has successfully confirmed the export quality of the coal and importantly the test results have verified the reliability of the initial historical quality data which has been previously published by Coalspur. The Vista Coal Project contains 906 million tonnes JORC/43-101 resource of low sulphur, high volatile bituminous thermal coal of which 90% is in the measured and indicated categories.
The study was completed by internationally recognized coal industry consultant Bob Leach.
The evaluation, carried out on the Hinton East and West areas of the Vista Coal Project, was based on the core drilling program completed earlier this year and historical coal quality data. A prefeasibility study is currently underway which will incorporate the entire consolidated Vista Coal Project area and will be completed in the December 2010 quarter.
"The results validate the historical coal quality data from work completed in the 1981-1985 timeframe which was used in the recently completed Scoping Study," stated Gene Wusaty, Coalspur's Managing Director. "This updated information will now be incorporated into the prefeasibility study which recently commenced in July this year. A new drilling and bulk sample program is planned for later this year in preparation for the bankable feasibility study which is scheduled to start in early 2011."
A preliminary product specification has been developed from the initial clean coal data from the 2010 program and the Esso historical clean coal results (For Tables please refer to the link at the bottom of release); a more detailed preliminary product specification can be found in Table 3. The product targets a calorific value of 5,750Kcal/kg to 5,850Kcal/kg at maximum 12.5% total moisture (gross as received ("gar") basis). Ash will typically be 9% to 11% gar. The product has low total sulphur (0.25% to 0.35% air dried ("ad") basis) and low chlorine (0.02% to 0.04% ad).
The specific seam yield information for the former Hinton East and West is included in Table 4. Val D'Or and McPherson Seams will be dedicated to the export thermal market.
Arbour and McLeod seams (<10% of the deposit) will likely target a slightly lower energy product (5,400Kcal/kg to 5,500Kcal/kg gar). The Arbour Seam is only found in the west part of the deposit and is not always mineable due to thinning. At this time the McLeod Seam is planned to be marketed regionally. It was not included in the economics of the original Scoping Study but will now be included in the current Pre-Feasibility Study.
In summary, including 0.1m dilution and 0.1m coal loss, Val D'Or seam realised 54% and 57% yield (West and East Blocks respectively), 1.55 density cutpoint at CVgar of approximately 5,800Kcal/kg. Run of mine ("ROM") ash increased from 29% to 33% and 26% to 30% (West and East Blocks respectively) on application of dilution and coal loss over the clean coal (no dilution) case.
McPherson seam realised 56% and 54% yield (respectively West and East Blocks) at a CVgar of 5,720Kcal/kg to 5,750Kcal/kg. ROM ash increased from 29% to 33% and 27% to 29% (West and East Blocks respectively) on application of dilution and coal loss over the clean coal case.
The Arbour Seam in West Block realised 46% yield at 5,700Kcal/kg CVgar and the McLeod Seam averaged 40% yield (both blocks) at approximately 5,450Kcal/kg.
For the complete Coalspur Mines announcement including tables and figures, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/63496-ASX-CPL-501083.pdf
About Coalspur Mines Limited
Coalspur Mines Limited (ASX:CPL) (TSE:CPT) is a coal development company with approximately 55,000 hectares of coal leases located within the Hinton region of Alberta, Canada. Coalspur's flagship project is Vista, which covers approximately 10,000 hectares and provides a large scale, surface mineable, thermal coal development. Vista is located adjacent to CN Rail's main line, which is suitable for the transport of coal to deepwater ports on Canada's west coast. Coalspur has secured a port allocation agreement with Ridley Terminals Inc., which is essential to the logistics supply chain necessary to export coal from Vista to the growing demand from the Asia Pacific countries.
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