Quantcast
Last updated on April 17, 2014 at 1:21 EDT

Coalspur Substantially Increases Existing Vista South Coal Resources

May 22, 2012

Highlights:

        --  Substantial increase of 404% in Measured & Indicated Coal
            Resources on Vista South from 93Mt to 471Mt
        --  Vista South Inferred Coal Resources increases by 706% from 75Mt
            to 605Mt
        --  Coalspur's total Measured & Indicated Resources increases by
            29% to 1,700Mt and Inferred Resources by 35% to 2,035Mt
        --  Coalspur to continue exploration drilling on Vista South to
            further confirm the geological structure in the area and
            provide data for future technical studies

CALGARY, May 23, 2012 /CNW/ – Coalspur Mines Limited (“Coalspur” or “Company”) (ASX: CPL, TSX: CPT) is pleased to announce it has substantially increased the Vista South
Coal Project (“Vista South“) Measured and Indicated Coal Resources to 470.5 million tonnes (“Mt“) and upgraded the Inferred Coal Resource to 604.5Mt, following a
recent drilling program.

This increases Coalspur’s total Measured and Indicated Coal Resource by
29% to 1,700.1Mt and the Inferred Coal Resource by 35% to 2,034.7Mt
across its key tenement areas.

     _________________________________________________________________
    |Table 1: JORC / NI 43-101 Coal Resources                         |
    |_________________________________________________________________|
    |                  |         |           |  Measured &|           |
    |                  | Measured|  Indicated|   Indicated|   Inferred|
    |                  |     (Mt)|       (Mt)|        (Mt)|       (Mt)|
    |__________________|_________|___________|____________|___________|
    |Vista South Coal  |    210.6|      259.9|       470.5|      604.5|
    |Project           |         |           |            |           |
    |__________________|_________|___________|____________|___________|
    |Vista Coal Project|    686.0|      369.9|     1,055.9|      460.9|
    |__________________|_________|___________|____________|___________|
    |Vista Extension   |      6.5|      167.2|       173.7|      969.3|
    |__________________|_________|___________|____________|___________|
    |Coalspur Total    |    903.1|      797.0|     1,700.1|    2,034.7|
    |Resources         |         |           |            |           |
    |__________________|_________|___________|____________|___________|

Note: Vista Coal Project and Vista Extension Coal Resource estimates
effective May 8, 2012, Vista South Coal Project Coal Resource estimates
effective May 22, 2012

Commenting on the announcement, Mr Gene Wusaty, Managing Director and
CEO, said, “This substantial resource increase confirms that Vista
South has the potential to become a future mining operation. This adds
another exciting growth opportunity to our pipeline of projects. As
with the recently announced Vista Extension Resource, this new resource
will enable Coalspur the optionality to increase future production
growth and life of mine in excess of the already announced Phase 1 and
Phase 2 growth programs.”

“Furthermore the proximity of Vista South to the planned mine
infrastructure of Vista Phase 1 and Phase 2 coal projects will enhance
the project economics of the potential mining operation as it will
leverage off this infrastructure.”

“The next drilling campaign will commence shortly and is expected to
prove up the continuity of the deposit and upgrade the existing
resource classifications on the property. The additional activity will
build on the exploration drilling completed to date, which has helped
to determine the targets for future exploration.”

Future Drilling Locations Under Application

Ahead of future exploration activities, Coalspur is applying to the
Alberta Government for exploration permits for an additional 22
rotary/core holes on Vista South, for which Coalspur anticipates
receiving approval in June 2012. Upon receipt of these approvals the
Company will commence its fourth drilling program on the area. The
permits under application are located near the axis of the Entrance
Syncline and were chosen to confirm the depth and orientation of the
seams.

Vista South Coal Resource Estimate

The preparation of the Coal Resource estimate was undertaken by Moose
Mountain Technical Services (“MMTS”) in accordance with the JORC Code
(2004) and National Instrument 43-101 (“NI 43-101″). MMTS has 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, Mitsui, Walter Energy and Anglo Pacific.

The Vista South resource upgrade estimate has been based on the
following elements:

        --  The Coal Resource is defined from four main coal seams (Val
            d'Or, McLeod, McPherson, and Silkstone) that have a cumulative
            coal thickness up to 30m;
        --  The resource includes a total of 255 rotary and core holes
            (totalling 47,374m) which were drilled by Denison and Manalta
            Coal in the 1980's and Coalspur's recently completed drilling
            programs;
        --  The estimate includes surface mineable Coal Resources and
            underground Coal Resources;
        --  Key points from the surface mineable Coal Resource estimate are
            as follows:
      o Surface mineable Coal Resources are comprised Measured Resources of
        117.6Mt, Indicated Resources of 105.8Mt, and Inferred Resources of
        86.7Mt;
      o The modelled pit used 45° walls and a 14.6:1 strip ratio pit
        (modelled using a 20:1 incremental cut-off strip ratio); and
      o A minimum mineable seam thickness of 0.6m.
        --  Key points from the underground Coal Resource estimate are as
            follows:
      o Underground Coal Resources are comprised Measured Resources of
        93.0Mt, Indicated Resources of 154.1Mt, and Inferred Resources of
        517.9Mt;
      o Maximum overburden depth of 600m; and
      o A minimum mineable seam thickness of 1.5m.

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 Vista Coal Project and Vista South
Coal Project, including a description of Coalspur’s quality assurance
program, quality control measures, the geology, samples collected and
testing procedures in respect of the projects, please refer to the
technical report on the Vista Coal Project titled “Coalspur Mines
Limited: Feasibility Study of the Vista Coal Project, Hinton, Alberta”
dated January 26, 2012 and the technical report on the Vista South
Project titled “Resource Estimate for the Vista South Coal Property”
dated December 15, 2010, which are compliant with National Instrument
43-101 – “Standards of Disclosure for Mineral Projects” (“
NI 43-101“) and are available for review on SEDAR at sedar.com.

Competent Person / Qualified Person Statements

The information in this news release that relates to Coal Resources on
the Vista Coal Project and Vista Extension, mining engineering,
Recoverable Coal Reserves, mining capital costs and mining operating
costs is based on information compiled by Mr. Jim McQuaid, who is a
Member of the Association of Professional Engineers, Geologists and
Geophysicists of Alberta. Mr. McQuaid is a full-time employee of Golder
Associates Ltd., who are consultants to Coalspur. Mr. McQuaid 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. McQuaid has approved
and 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 Coal Resources on
Vista South 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 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 coal quality and
process yield estimates to derive Marketable Coal Reserves is based on
information compiled by Mr. Gordon Mudryk, who is a Member of the
Association of Professional Engineers, Geologists and Geophysicists of
Alberta. Mr. Mudryk is a full-time employee of Coalspur. Mr. Mudryk 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.
Mudryk has approved and 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 Report 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 has approved and
consents to the inclusion of such information in this Report 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, planned drilling activities on Vista
South, potential development of Vista South, statements with respect to
the potential of Vista Extension, the planned drilling program and
longwall scoping study, the development of Vista, the Company’s
feasibility study, the mine plan, time lines and completion dates,
permits and approvals, business strategy, plans, development,
objectives, performance, outlook, growth, cash flow, projections,
targets and expectations, mineral reserves and resources, studies,
results of exploration and related expenses. Generally, this
forward-looking information can be identified by the use of
forward-looking terminology such as ‘will’, ‘expect’, ‘potential’,
‘outlook’, ‘anticipate’, ‘project’, ‘target’, ‘likely’, ‘believe’,
‘estimate’, ‘intend’, ‘may’, ‘would’, ‘could’, ‘should’, ‘scheduled’,
‘plan’, ‘forecast’, “evolve” or variations of such terms 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. Such factors include, without limitation,
inherent uncertainties and risks associated with mineral exploration;
uncertainties related to the availability of future financing necessary
to undertake activities on the Company’s properties; uncertainties
related to general economic conditions; uncertainties related to global
financial conditions; risks related to the integration of businesses
and assets acquired by the Company; risks associated with the Company
having no history of earnings or production revenue; uncertainties
related to the possible recalculation of, or reduction in, the
Company’s mineral reserves and resources; uncertainties related to the
outcome of studies to be undertaken by the Company; uncertainties
relating to fluctuations in coal price; the risk that the Company’s
title to its properties could be challenged; risks related to the
Company’s ability to attract and retain qualified personnel;
uncertainties related to the requirement for ministerial approval for a
change of control of the Company; risks relating to consultation with
the public and aboriginal groups; uncertainties related to the
competitiveness of the mineral resource industry; risks associated with
the Company being subject to government regulation, including changes
in regulation; risks associated with the Company being subject to
environmental laws and regulations, including a change in regulation;
risks associated with the Company’s need for governmental licenses,
permits and approvals; uninsured risks and hazards; risks associated
with fluctuations in foreign exchange rates; risks related to default
by joint venture parties, contractors and agents; inherent risks
associated with litigation; risks associated with potential conflicts
of interest; risks related to effecting service of process on directors
resident in foreign countries; uncertainties related to the Company’s
limited operating history; risks related to the Company’s lack of a
dividend history; risks relating to short term investments; and
uncertainties related to fluctuations in the Company’s share price.
Although the Company has attempted to identify important factors that
could cause actual actions, events or results to differ materially from
those described in forward looking statements, there may be other
factors that cause actions, events or results not to be as anticipated,
estimated or intended.

In making the forward-looking statements the Company has applied several
material assumptions which may prove to be incorrect, including, but
not limited to, (1) that all required third party approvals will be
obtained for the development, construction and production of its
properties, (2) there being no significant disruptions affecting
operations, whether due to labour disruptions, supply disruptions,
power disruptions, damage to equipment or otherwise; (3) permitting,
development and expansion proceeding on a basis consistent with the
Company’s current expectations; (4) currency exchange rates being
approximately consistent with current levels; (5) certain price
assumptions for coal; (6) production forecasts meeting expectations;
(7) the accuracy of the Company’s current mineral resource and reserve
estimates; (8) labour and materials costs increasing on a basis
consistent with the Company’s current expectations; (9) that any
additional required financing will be available on reasonable terms;
and (10) assumptions made and judgments used in engineering and
geological interpretation.

There can be no assurance that forward looking statements will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward looking statements.

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


Source: PR Newswire