Marketable coal reserves at Coalspur Mines‘ (CPT-T) flagship Vista project in Alberta have risen 20% to 313 million tonnes from the 260 million tonnes estimated in the prefeasibility study. The 313 million tonnes will come from a recoverable coal reserve of about 566 million tonnes.
The increase in marketable reserves is part of an ongoing bankable feasibility study expected early this year.
Coalspur says the rise in marketable reserves can be attributed to a larger pit limit, improvements to clean coal yields and a refined mining and coal recovery plan. The final mine plan envisions a run-of-mine operation at 20 million tonnes per year that would produce 11.2 million tonnes of saleable thermal coal annually for 30 years.
The company plans to export its coal mainly to the Asian economies of China, Japan and Korea, and its management believes the Vista project “has the potential to be the largest export thermal coal mine in Canada.”
In November Coalspur signed a memorandum of understanding with CN under which the two companies will develop a logistics supply chain to transport coal from Vista to ports in Western Canada, including Prince Rupert, beginning in 2015. A definitive transportation agreement will be negotiated next year after the bankable feasibility is completed, the company says.
Earlier this year, Coalspur signed an agreement with Ridley Terminals at the port of Prince Rupert to handle up to 8.5 million tonnes of export coal a year at the terminal.
Coalspur and CN will jointly design and build a rail siding at Vista for loading up to 175-car unit trains.
In December Coalspur acquired 73 sq. km of coal-bearing leases from the Alberta government that are 10 km northwest of the Vista project.
Exploratory drilling on the new leases will get underway before mid-year.
At presstime Coalspur traded at $1.71 within a 52-week range of $1.25-$3.26. The company has 532.2 million shares outstanding.
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