Highlights:
-
Acquired additional 14,432 hectares of coal bearing leases which
increases the Company's total land position in the Hinton region to
approximately 55,000 hectares
-
New leases are contiguous with the Vista property, are on the same
favourable geological structure and are expected to contain the same
export quality bituminous thermal coal
-
JORC/NI 43-101 Coal Resource study underway and to be completed shortly
using historical drilling information
CALGARY, April 30, 2012 /CNW/ - Coalspur Mines Limited ("Coalspur" or "Company") (ASX: CPL, TSX: CPT) is pleased to announce the acquisition of 14,432 hectares of coal
bearing leases ("Vista Extension") which are contiguous with the Company's Vista Coal Project ("Vista") for C$13 million in cash. Vista Extension is located on the northeast
boundary of Vista and is in a land use area classified as category four
which is the most favourable for resource development in Alberta. A
portion of Vista Extension includes 5.1 million tonnes of surface
mineable coal which was included in the Recoverable Coal Reserves
estimated in the recently completed feasibility study on Vista.
Commenting on the acquisition, Mr Gene Wusaty, Managing Director and
CEO, said "This transaction provides significant value to Coalspur as
it has the potential to provide further production growth through an
underground operation which can leverage off of any future
infrastructure built on Vista. We believe Vista Extension hosts
substantial Coal Resources and we will commence a drilling program in
the coming months to further our understanding of the property."
A JORC Code (2004) ("JORC") and National Instrument 43-101 ("NI 43-101") compliant Coal Resource estimate is underway and is scheduled to be
completed shortly. The Coal Resource estimate will be based on the
existing drill holes on Vista Extension and any drill holes in close
proximity. Coalspur is planning a drilling program on Vista Extension
in the coming months to support any future technical studies on the
property. The drilling program will provide targeted additional
geological structure and coal quality data.
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
All 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 2004 Edition of
the 'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves', 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, statements with respect to the
development of Vista, funding for the development of Vista, the outcome
of any arrangements with partners which may provide future funding for
the development of Vista or coal marketing arrangements for Coalspur,
any reduction in costs for the development of Vista, the Company's
feasibility study, the mine plan, drilling programs, time lines and
completion dates, permits and approvals, an updated resource for Vista
South, resource estimates on Vista Extension, 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.
