PERTH,
Western Australia,
July 31, 2012 /CNW/ -
Coalspur Mines Limited ("Coalspur" or "Company") (ASX: CPL) (TSX: CPT) is pleased to present its quarterly report for the three months ending
30 June 2012.
Highlights:
-
Ms
Gill Winckler, a former senior BHP Billiton executive, was appointed
President and CEO following the resignation of Mr
Gene Wusaty. Ms
Winckler's previous roles include Chief Development Officer of the
Energy Coal division where she was responsible for BHP Billiton's
thermal coal business development activities and project growth
pipeline around the world (announced
30 May 2012).
-
Completed a production optimization study on Vista which resulted in an
increase in the forecast annual marketable coal production capacity to
12.0Mtpa from 11.2Mtpa (announced
26 April 2012).
-
Submitted the regulatory applications necessary to construct, operate
and commission Phase 1 of Vista. Approval of these applications is
targeted for early 2013 with construction on Vista to commence
thereafter (announced
2 May 2012).
-
Acquired an additional 14,432 hectares of coal bearing leases in the
Hinton region for
C$13 million which are adjacent to the northeast
boundary of Vista ("
Vista Extension") (announced
30 April 2012).
-
Increased the Company's Measured and Indicated Coal Resources to 1.7
Billion tonnes ("
Bt") following:
-
an initial Coal Resource estimate on Vista Extension, comprising 173.7
million tonnes ("
Mt") in the Measured and Indicated Mineral Resource categories and 969.3Mt
in the Inferred Mineral Resource category (announced
9 May 2012); and
-
a substantial increase in the Vista South Coal Project ("
Vista South") Measured and Indicated Coal Resources to 470.5Mt and an increase in
the Inferred Coal Resource to 604.5Mt (announced
23 May 2012).
-
The Company is continuing its process to identify strategic investment
partners as part of the financing strategy to fund Phase 1 of Vista.
Original expectations were to finalize this process by
30 June 2012,
however, uncertain global markets and weak short-term coal prices have
resulted in this process taking longer than anticipated.
Subsequent to quarter end, the Company:
-
Completed a scoping study on Vista Extension which confirms the
potential for an economic and technically feasible underground longwall
mine (announced
30 July 2012).
Going Forward
The Company is currently focusing on the financing, regulatory and
technical efforts necessary to commence construction on Vista.
Activities in the coming months are expected to include:
-
Continue discussions with potential strategic investment partners;
-
Progress the regulatory applications for Phase 1 of Vista;
-
Progress the detailed design engineering on Vista;
-
Progress negotiations with CN on the definitive transportation
agreement; and
-
Continue discussions with mining contractors who may be utilized during
the construction phase and the initial years of mining at 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
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 Recoverable Coal
Reserves, mining engineering, mining capital cost, mining operating
costs, and economic financial analysis is based on information compiled
by Mr.
David Leslie, who is a Member of the Association of Professional
Engineers, Geologists and Geophysicists of
Alberta. Mr. Leslie is a
full-time employee of Coalspur. Mr. Leslie 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. Leslie 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 news release that relates to coal quality and
process yield estimates to derive Marketable Coal Reserves, operating
costs and capital costs related to coal crushing, coal handling, and
infrastructure, coal crushing, handling, processing and thermal drying
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 report in the form and context in which it
appears.
The information in this news release that relates to Coal Resources is
based on information compiled by Mr.
John Innis, who is a Member of the
Association of Professional Engineers, Geologists and Geophysicists of
Alberta. Mr. Innis is a full-time employee of Coalspur. Mr. Innis 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.
Innis 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.
David Leslie, who is a Member of the
Association of Professional Engineers and Geoscientists of
Alberta. Mr.
Leslie is a full-time employee of Coalspur. Mr. Leslie 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. Leslie 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's ability to secure adequate access to clean coal
transportation infrastructure, 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; risk associated with a potential
financial misstatement due to error or fraud; uncertainties related to
the Company's limited operating history; risks related to the Company's
lack of a dividend history; risks associated with potential computer
hardware or software failure; 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
