Coalspur Mines conducted a scoping study at its wholly owned Vista Extension property located on the northeast boundary of the Vista Coal project in Hinton, Alberta and has confirmed the potential presence of an economically and technically feasible underground longwall mine.

The study is based on the recently completed coal resource estimate which had 173.7 million tons (Mt) in the measured and indicated mineral resource categories and 969.3Mt in the Inferred Mineral Resource category.

The study also confirmed that the Vista Extension has the potential to result in operating cash flow of about C$153m ($152m) every year.

Golder Associates completed the study, which defined a 28 year mine plan producing an average of 3.8Mt million tons per annum
(Mtpa) of saleable coal from the processing of approximately 6.3Mtpa run of mine coal.

Coalspur Mines president and CEO Gill Winckler said the Vista Extension scoping study validates the company’s strategic acquisition of the leases earlier this year and confirms the potential for another project in its portfolio.

"We believe that Vista Extension provides more development optionality for Coalspur and a platform for capital efficient production growth," Winckler added.

"We recognise the upside that Vista Extension potentially adds to Vista and plan to commence a pre-feasibility study in 2013 that will examine scenarios for the integration of the two projects.

In the short term, we remain focused on securing funding and regulatory approvals for the Vista project."

The company will be constructing infrastructure for its Vista Coal project such as the coal handling and processing plant facilities which can be used for the Vista Extension property too, thus reducing the infrastructure requirements.

Coalspur, to validate the study, will carry out additional exploration drilling and technical studies.

Canada based Coalspur is a coal exploration and development company.