Ouarterly Activiities and Cashflow Reports
Perth, Oct 31, 2012 AEST (ABN Newswire) - Coalspur Mines Limited (
ASX:CPL) (TSE:CPT) is pleased to present its quarterly report for the three months ending 30 September 2012 with the following highlights:
- The Company completed a scoping study on Vista Extension which confirmed the potential for an economic and technically feasible underground longwall mine.
Highlights of the scoping study included:
-- Forecast average production of 3.8 million tonnes per annum ("Mtpa") (6.3 Mtpa run of mine) marketable coal;
-- Potentially mineable resources of approximately 108 Mt and a mine life of 28 years;
-- Development costs of C$346 million, which reflect cost savings due to the close proximity of the Vista infrastructure; and
-- Low average operating costs of C$58.2/t free-on-board Ridley Terminals over the life of the mine.
- Coalspur finalised port allocation agreements with Ridley Terminals to secure 11.7 Mtpa of deep water port throughput capacity, which substantially satisfies the port requirements for the anticipated Vista Coal Project ("Vista") production.
- The Company expanded its memorandum of understanding with CN rail from 11.2Mtpa to 12.0Mtpa to accommodate the optimized production profile on Vista.
- Regulatory bodies continued their review of Coalspur's Environmental Impact Assessment and Mine License applications, and the Company made substantial progress with respect to aboriginal consultation and other stakeholder engagement.
- The Company continued its process to identify a strategic investment partner, which it anticipates concluding during 2012.
Subsequent to quarter end, the Company completed an optimisation study on Vista which minimized the capital required to achieve initial production. Highlights of the study include:
-- Development capital to achieve first production in 2015 reduced to C$527 million (C$343 million lower than the Vista Feasibility Study)
-- Potential further reduction of up to C$82 million by leasing/contracting mobile equipment, taking development capital to approximately C$445 million
-- Total net funding to achieve full 12.0 Mtpa production capacity of C$841 million with project cashflows substantially contributing to expansion funding
-- Development capital expected to be funded either by a strategic partner or a combination of a strategic partner and an off-take arrangement
-- Development plan maintains integrity of the current regulatory process
View the full Quarterly Report here:
http://media.abnnewswire.net/media/en/docs/ASX-CPL-611402.pdf
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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