Coalspur Mines Limited (ASX:CPL) Acquires Significant Additional Coal Leases
Perth, Dec 7, 2009 AEST (ABN Newswire) - Coalspur Mines Limited (ASX:CPL)(PINK:CSPZF) is pleased to advise that it has significantly expanded its coal lease position with the acquisition of a suite of Crown Coal Leases adjacent to the Coalspur's existing Hinton and Coalspur Projects ("Projects") following a public tender.
The new coal leases, together with the Company's existing Coalspur Project, were subject to exploration and drilling by Denison Mines Limited's ("Denison") subsidiary, Dentherm Resources Limited ("Dentherm") in the late 1960's, 1970's and early 1980's. The exploration and drilling conducted by Denison culminated in a feasibility study in 1982, however the project did not proceed due to low coal prices at the time.
The coal leases were acquired on 3 December 2009 (Canadian time) in the recent Alberta Energy Departments Public Offering of Crown Coal Leases which was initiated by applications submitted by the Company. The strategy behind the acquisition was to add additional coal resources and consolidate the existing Projects to provide a possible infrastructure corridor between the Hinton and Coalspur Projects.
Commenting on the acquisition of the new leases the Company's Managing Director and CEO, Mr Gene Wusaty, said "The newly acquired coal leases have the potential to host a significant coal deposit adjacent to our Coalspur Project. The Dentherm Resources' Feasibility Study combined with the existing Esso Feasibility Study will serve as a base for our future feasibility work on the entire project".
"We have been fortunate in obtaining leases that have only resurfaced due to our extensive knowledge and exploration in the region. There are clear synergies that could be realized from the new areas," Mr Wusaty continued. "The fact that the leases consolidate our position in the area and join the Projects adds an important dimension to the potential development of a much larger project in the area".
The considerable historical drilling and studies undertaken are expected to provide a solid foundation to assess the coal contained on the leases in accordance with the JORC Code in early to mid 2010. In addition any further resources identified in these properties would have the advantage of leveraging of coal mining, handling and processing infrastructure that could potentially be built to develop the Hinton Coal Project.
About Coalspur Mines Limited
Coalspur Mines Limited (ASX:CPL) (TSE:CPT) is a coal development company with approximately 55,000 hectares of coal leases located within the Hinton region of Alberta, Canada. Coalspur's flagship project is Vista, which covers approximately 10,000 hectares and provides a large scale, surface mineable, thermal coal development. Vista is located adjacent to CN Rail's main line, which is suitable for the transport of coal to deepwater ports on Canada's west coast. Coalspur has secured a port allocation agreement with Ridley Terminals Inc., which is essential to the logistics supply chain necessary to export coal from Vista to the growing demand from the Asia Pacific countries.
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