Coalspur Mines Limited - September 2011 Quarterly Report
PERTH, Western Australia, Oct. 26, 2011 /CNW/ - Coalspur Mines Limited ('Coalspur' or 'Company')
is pleased to present its quarterly report for the period ending September 30, 2011.Highlights:
-- Substantially progressed the ongoing Bankable Feasibility Study
('BFS') which is on schedule for publication in early 2012 and
completion in December 2011.
o Completed an enhanced mine plan which accelerates dragline mining
to the first year of production as compared to the fifth year, as
outlined in the Pre-Feasibility Study ('PFS').
o Optimised infrastructure design which will be able to process 20.1
million tonnes per annum ('Mtpa') of run-of-mine ('ROM') coal as
compared to 18.0Mtpa in the PFS.
o Finalised coal quality specifications on the Vista Coal Project
('Vista') through the analysis of over 1,200 raw coal data points
encompassing all regional areas in Vista a three tonne bulk sample.
o Initiated geotechnical drilling on Vista which will be utilised in
the infrastructure design and placement of the tailings pond, plant
site location, and rail load-out location.
o Coalspur and the engineering firms involved in the BFS are now
positioned to begin preparation of cost estimates on equipment and
manpower requirements for mine construction.
-- Completed detailed coal quality test work and mine planning as
part of the ongoing BFS which resulted in a significant 12%
increase in the clean coal yields on Vista to 56% from 50%, as
estimated in PFS.
o The increased clean coal yield is expected to lead to increased
marketable coal reserves, which is currently being re-evaluated as
part of the BFS.
-- Forecast annual marketable coal production capacity on Vista
increased by 24% to 11.2Mtpa, up from 9.0Mtpa in the PFS.
o The production increase was the result of an enhanced mine plan,
improved clean coal yields and optimised infrastructure design as
part of the BFS.
-- Appointed Colin Steyn as Chairman and appointed five Directors
to further strengthen the Board with additional operational
experience and Canadian capital market expertise in order to
position Coalspur to successfully bring the Vista project into
production:
o David Murray-Over 30 years of international operating experience in
the coal industry. He has recently held a number of senior
positions within BHP Billiton, including President of BHP Billiton
Energy Coal Division;
o Peter Breese-Over 25 years experience in the global mining industry
and has held a number of senior management positions, including CEO
of Mantra Resources, before its US$1 billion acquisition by Uranium
One;
o Ted Mayers-Chartered Accountant with extensive experience in
financial management within the mining sector and was recently the
CFO of Lundin Mining;
o Mark Rodda-Lawyer who was recently General Counsel and Corporate
Secretary for a large international resources group. He is
currently a partner of a corporate services and advisory firm based
in Perth; and
o William Smart(alternate Director to Colin Steyn and Peter Breese) -
Over 40 years experience in the mining industry, including 26 years
with the Anglo American Group.
The continuing positive results from the BFS and the recent board appointments confirm Vista's status as a world class, tier-one thermal coal project. Coalspur is strongly positioned as it begins negotiations with potential off-take partners as Vista progresses into the construction phase.
Going Forward
The Company completed a significant amount of key corporate initiatives during the quarter as it works towards the completion of the BFS. Activities in the coming months are expected to include:
-- Completion of the BFS which will incorporate the increased
production rates and increased clean coal yield results on
Vista;
-- Pursuing project financing discussions with potential off-take
partners;
-- Advancing discussions with potential rail and port providers;
-- Initiating further exploration drilling on the Vista South Coal
Project ('Vista South') to be used in coal quality testing and
updating the resource estimate on Vista South; and
-- Continuing to advance the permitting, public consultation and
mine licensing on Vista.
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 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 'Vista Coal Project Prefeasibility Study' dated January 25, 2011 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 Report that relates to Coal Quality is based on information compiled by Mr. Robert Leach, who is a Member of AusIMM Mr. Leach is a full-time employee of Bob Leach Pty Ltd, and is a consultant to Coalspur. Mr. Leach 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 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. Leach consents to the inclusion of such information in this Report in the form and context in which it appears.
The information in this Report that relates to Coal Resources 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 has approved and consents to the inclusion of such information in this Report in the form and context in which it appears.
The information in this Report that relates to Coal Reserves is based on information compiled by Mr. Robert Fong, who is a Member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta. Mr. Fong is an associate of Moose Mountain Technical Services, who are consultants to Coalspur. Mr. Fong 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. Fong has approved and consents to the inclusion of such information in this Report in the form and context in which it appears.
The information in this Report that relates the Bankable Feasibility Study on the Vista Coal Project is based on information compiled by Mr. Murray Lytle, who is a Member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta. Mr. Lytle is a full-time employee of Snowden Mining Industry Consultants Inc., who are consultants to Coalspur. Mr. Lytle 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. Lytle has approved and consents to the inclusion of such information in this Report 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 Report 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, statements with respect to the Company's Pre-Feasibility Study and Bankable Feasibility Study, production rates, drilling programs, 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 'expect', 'potential', 'outlook', 'anticipate', 'project', 'target', 'likely', 'believe', 'estimate', 'intend', 'may', 'would', 'could', 'should', 'scheduled', 'will', 'plan', 'forecast', 'evolve' or variations of such terms and similar expressions. Persons reading this Report 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.
Coalspur Mines Limited
CONTACT: Gene Wusaty
Managing Director and CEO
Telephone: 1 403 975 7901
