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Coalspur Mines Limited (ASX:CPL) Second Phase Drilling Commence At Vista Coal Project

17.02.2011  |  ABN Newswire

10:14 AEST Feb 17, 2011 ABN Newswire (C) 2004-2011 Asia Business News PL. All Rights Reserved.






Perth, Australia (ABN Newswire) - Coalspur Mines Limited (ASX:CPL) (PINK:CSPZF) ('Coalspur' or 'Company') is pleased to announce that the second phase of development drilling at the Company's flagship project, the Vista Coal Project ('Vista') has now commenced.

In addition to undertaking further confirmatory drilling for the upcoming Bankable Feasibility Study ('BFS'), the program has been designed to investigate the underground longwall potential at Vista. The Company is also steadily progressing programs focused on the mine planning and permitting component of the Vista development and upcoming BFS.

Commenting on the importance of the drilling activity, Managing Director and CEO, Gene Wusaty said 'We expect to get a substantial amount of critical information from this drilling program which has been designed to upgrade the existing resource classifications and provide further confirmation of the coal quality across the Project's very large strike length, which exceeds 20 kilometres. Technical information from this program will greatly assist us when we formally commence the BFS.'

'Furthermore, the potential for additional reserves from underground longwall mining in Vista provides Coalspur with an exciting opportunity to increase the production capacity of the potential mine.'

Vista Development Drilling

Coalspur's first phase development drilling program was completed in the December 2010 Quarter and was comprised of 20 rotary drill holes and 9 core drill holes. The analytical results from the 9 completed core holes are currently being interpreted and are expected to be announced to the market later this quarter.

The Company's second phase development drilling program includes 16 rotary drill holes and 10 core holes with completion expected later this quarter. The second phase rotary drill holes have been orientated to upgrade the existing resource classifications within Vista. The core holes from development drilling programs have been strategically placed to investigate and confirm coal quality characteristics across the eastern portion of Vista which spans a strike length of approximately 12km.

Vista Underground Drilling

In 1984 Esso Resources completed a feasibility study that identified potential for underground mining. Based on that study the Company believes that the deeper areas of the over 20 kilometre strike length of gently dipping, multiple coal seams within Vista have the potential to be mined by conventional underground longwall mining methods. As a result two core holes will be drilled into the deeper portions of the coal formation and will be examined by mining consultants with the objective of assessing geotechnical capabilities to enable underground longwall mining and accessing potential additional coal reserves.

Piezometer Drilling

In conjunction with the rotary drill hole program, Coalspur's environmental consultants have selected some of the completed drill sites to install piezometer monitors. The piezometer monitors will measure hydrogeological conditions and will be used to confirm historical information regarding groundwater quality and quantity which are part of the ongoing technical studies required for development planning and regulatory approvals.

Mine Design

The 2010 drilling program for Vista includes geotechnical core holes at two points along the projected ultimate highwall for open pit mining. The collected core from these two holes will be geotechnically logged and sampled for strength testing to confirm design criteria for pit highwalls.

For the complete Coalspur Mines Limited announcement including figures, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/65241-ASX-CPL-529341.pdf



About Coalspur Mines Limited:

Coalspur Mines Limited (ASX:CPL) (PINK:CSPZF) is a coal exploration and development company based in Perth, Western Australia. The Company is listed on the Australian Securities Exchange.

The Company's Hinton Coal Project ('Project') is located in in the eastern foothills of the Rocky Mountains in Alberta, Canada. The Project is a large scale, open pit potential, thermal coal project located adjacent to the main line of the CN Rail which currently contains a JORC and NI 43-101 Coal Resource of approximately 339 million tonnes of low sulphur, high volatile, bituminous C thermal coal.



Source:

Coalspur Mines Limited



Contact:

Gene Wusaty
Managing Director and CEO
Tel: 1-403-975-7901


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