Coalspur Mines Limited (ASX:CPL) Vista Coal Project Resource Increases By 297.1Mt With Total Resource Increased To 1.37Bt
Perth, Nov 10, 2010 AEST (ABN Newswire) - Coalspur Mines Limited (
ASX:CPL) (PINK:CSPZF) is pleased to announce a Coal Resource upgrade of 297.1 million tonnes ("Mt") on its Vista Coal Project in Alberta, Canada ahead of the release of the Company's PFS on the Project. This increases the Company's total Coal Resource to 1.37 billion tonnes ("Bt").
Commenting on the upgrade of the VCP Coal Resource, Managing Director and CEO, Gene Wusaty said "The upgrade is a further testament to the size and quality of the Vista Coal Project and places the resource base of Coalspur in the top tier of emerging global coal developers. This upgraded resource will be incorporated into the final mine planning being conducted on the Project in the PFS and we are excited about the potential of developing one of the largest export coal project in North America".
The VCP Coal Resource upgrade estimate has been based on the following factors:
- addition of recently obtained historical drillhole information into the geological database;
- addition of the Silkstone seam which underlies the McPherson Seam in the central part of the deposit. The Silkstone seam historical drilling indicates 3 coal plies with an aggregate thickness of up to 4.5m;
- reinterpretation and modelling of the merged boundary areas of the Hinton East, Hinton West, Z-Block and McLeod River North leases which now form the VCP; and
- reinterpretation of all coal seam splits and partings.
The Resource Estimate has been completed in accordance with the JORC Code (2004) and National Instrument 43-101 ("NI 43-101").
The Coal Resources of the Company now totals over 1.37Bt of low sulphur, high volatile bituminous, export quality thermal coal with the VCP resource accounting for 1.20Bt and the Vista South Coal Project accounting for 168.3 million tonnes. Further resource drilling programs are currently underway to expand the Coal Resource over the Company's large 32,000 hectare coal lease position in the Hinton region of West Central Alberta.
Vista Coal Resource Upgrade
The preparation of the Coal Resource estimate was undertaken by MMTS in accordance with the JORC Code (2004) and NI 43-101. MMTS have 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.
Key points from work conducted by MMTS on the VCP Resource upgrade are as follows:
- The VCP Coal Resource of 1,202.8Mt is comprised of Measured Resources of 588.9Mt, Indicated Resources of 331.6Mt, and Inferred Resources of 282.3Mt;
- The Coal Resource is defined from four coal seams (Val D'or, McLeod, McPherson and Silkstone) that have a cumulative coal thickness of approximately 28m;
- The four coal seams which comprise the Coal Resource have a dip to the northeast ranging from 4o - 15o, which has resulted in the Coal Resource being defined within a 10.11:1 strip ratio pit (modelled using a 20:1 incremental cut-off strip ratio);
- The inclusion into the VCP geological model of 15 rotary and diamond drill holes (totalling 6,580m) previously drilled by various operators between 1981 and 2008, comprising 2 diamond drill holes (totalling 118m) and 13 rotary drill holes (totalling 6,462m);
- A modelled pit using 45 degree 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).
Coal Quality
Coal quality characteristics are based upon drilling and washability studies completed to date. Expected yields are ~ 54% which produces a low sulphur, 5,800kcal/kg GAR product which is currently in high demand in the Asia Pacific export thermal coal market.
For the complete Coalspur announcement including figures and tables, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/64135-ASX-CPL-514596.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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