Coalspur Mines Limited (ASX:CPL) Positive Drill Results At Vista South
Perth, Mar 23, 2011 AEST (ABN Newswire) - Coalspur Mines Limited (
ASX:CPL) (PINK:CSPZF) (TSE:CPT) is pleased to announce the results from recent drilling at its Vista South Project ("Vista South") in Alberta, Canada. The drilling program was designed to further delineate the geology of the Northern limb of the Entrance Syncline and to test for extensions to the South East of the Vista South deposit.
Vista South currently hosts a Measured & Indicated Coal Resource of 93.3 million tonnes ("Mt"), which is confined to the North West portion of the project area representing only 18% of the Vista South leases. The results from an additional 20 rotary holes have confirmed significant coal intercepts outside the existing resource model.
Commenting on the importance of the drilling results at Vista South, Managing Director and CEO, Gene Wusaty said "Results from Vista South continue to exceed our expectations and show the potential for Vista South to host a significantly larger coal resource than previously thought. Any additional resources at Vista South will provide significant value by leveraging off the existing infrastructure and operations at the Company's flagship Vista Project either by expansion or extension of the project life."
The recently completed drilling program commenced in January 2011 and comprised 20 rotary holes and two core holes. Further drilling on Vista South is currently underway and will include up to an additional 30 rotary holes and is expected to be completed in April 2011.
The Company's initial drilling program at Vista South in 2010 comprised 19 rotary holes which resulted in an initial Measured & Indicated Coal Resource of 93.3Mt and initial Resource of 75.0Mt. The existing resource is confined to the North West portion of the area, which represents only 18% of the Vista South leases.
The recent drilling results will enable the Company to perform further resource modelling on Vista South, which is expected to result in increases to the Coal Resource at Vista South during the June 2011 Quarter.
The ongoing exploration drilling throughout Vista South will add definition to the major seams within the Coalspur formation - Val d'Or, McLeod, McPherson and Silkstone - throughout the northern limb of the Entrance Syncline, whose trend was established during the drilling that took place in 2010, as well as the Gregg area, which underwent drilling in 1981 and 1982 by Denison.
The data obtained from the drilling activity is currently being analysed to determine if two exploration target areas in the northern limb of the Entrance Syncline can be consolidated into a continuous 11km strike length and to expand the area of coal resource modelling. Preliminary interpretations of the data indicate that fault repetition is present in the northern limb of the Entrance Syncline and supports the potential for surface mining.
The drilling results also indicate that the McPherson seam may be thicker in Vista South than in the Vista Coal Project ("Vista") and is up to 10m thick in certain parts of the northern limb of the Entrance Syncline. Analysis of the drilling results indicate that the exploration areas currently under investigation are structurally complex and contain multiple repeats of what appears to be the McPherson seam. Further analysis will be undertaken to determine the McPherson seam throughout Vista South.
Two core samples, containing the Val d'Or and McPherson seams have been obtained and have been shipped to a laboratory and will undergo a full suite of analyses. The quality results from the laboratory are expected in the coming weeks.
For the complete Coalspur Mines announcement including tables and figures, please view the following link:
http://www.abnnewswire.net/media/en/docs/534686.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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