Feb 25 2011
Coalspur Mines Limited (ASX: CPL, TSX: CPT) has announced that the interpretation of the first phase development drilling has indicated the potential for the Silkstone seam to extend for over a 16km strike length within the Company's flagship project, the Vista Coal Project.
Highlights:
- Analysis of initial drilling intersections have further defined the Silkstone coal seam which is currently not included in Vista's Coal Reserves
- Preliminary observations indicate that the Silkstone seam could be present over a 16km strike length within Vista
- Initial geological interpretation of recent drilling and previous technical studies indicate that the Silkstone seam is shallow dipping, has thicknesses up to 4.5 metres and has surface mining potential
- Second phase development core drilling program will be aimed at providing further information for geological and coal quality modelling of the Silkstone seam
- Historical coal quality data indicates that the Silkstone seam will be suitable for export
The current development rotary drilling program is aimed at further investigating the Silkstone seam and confirming its strike length and extent within Vista with an aim to defining further potential Coal Resources. The Company has intersected the Silkstone seam with eight of the rotary drill holes completed in the Vista development drilling program. The information obtained from these holes has been used to confirm the 1980's historical information on the Silkstone seam. Preliminary indications show that the Silkstone seam subcrops along a trend of over 16km and lies at a shallow dip and has surface mining potential. Results from the development drilling program and from previous geological studies indicate that the Silkstone seam is split into three sub-seams and has thicknesses up to 4.5 metres.
Two of the eight rotary drill holes were cored so coal quality and washability testing could be completed on the Silkstone seam. Historical coal quality data indicates that the Silkstone seam will be suitable for export.
It is important to note that Coal Reserves as indicated in the Pre-Feasibility Study do not include any potential mineable coal from the Silkstone seam. The significant potential strike length and cumulative coal thickness of the Silkstone seam have the potential to add to the production profile defined in the Pre-Feasibility Study. Only a small potion in the central lease area is included in Vista's Coal Resource estimate. The drilling program is focussed on greatly expanding the seam area over the remainder of Vista. Further drilling is being planned to extend the definition of the Silkstone seam to the western boundary limits of Vista.