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TRANSCRIPT
ASX Small to Mid Caps Conference
Gene Wusaty Managing Director & Chief Executive Officer
March 2011
COALSPUR MINES LTD
TSX: CPTASX: CPL
Vista Coal Project – Growth Through Consolidation
Developing one of the Largest Export Thermal Coal Projects in North America
COALSPUR – VISTA PROJECT LOCATION
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30‐YEAR THERMAL COAL
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Due to previously decreased commodity prices, development of thermal coal projects in Canada has been dormant since 1982
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1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Australian Newcastle Thermal Coal Price History
Price (US$)
2008 World Electricity Generation by Fuel Type
WORLD ENERGY GENERATION
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Source: IEA
41% of world electricity generation is coal ‐ 730 million tonnes thermal traded in 2009
Coal41%
Oil5%
Gas21%
Nuclear14%
Hydro16%
Other3%
Half of the world still has little or no access to electricity
Greatest industrial revolution in history occurring in Asia – powered by coal
EXTENSIVE REGIONAL CONSOLIDATION
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Through consolidation of smaller properties, Coalspur has strategically amalgamated over 32,000 hectares of contiguous coal bearing leases with a large resource base and substantial exploration upside
Large scale development opportunity has resulted from aggressive regional consolidation
HINTON COAL MINING PROVINCE
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Vista Coal Project is located in a well known coal mining district in Alberta, Canada with four coal mines present in the immediate area
Vista & Vista South Coal Projects
Coalspur controls over 32,000 ha of coal bearing leases in the Hinton region
JORC/NI 43‐101 Measured & Indicated Coal Resources of 1.01 billion tonnes only less than half of holdings
Coalspur is the amalgamation of 3 historical projects (Esso, Manalta & Denison) in the northern end of the Coalspur trend
Existing Coal Mines
Coalspur located ~60km north of Coal Valley mine & ~10km south of Obed mine
Thermal coal from the region has been exported to Japan & South Korea since 1980s
The region also contains two producing coking coal mines
VISTA & VISTA SOUTH COAL PROJECTS
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Vista Coal Project
Flagship Project of the group and the focus of the upcoming feasibility studies
Contains JORC/NI 43‐101 Measured & Indicated Coal Resources of 920 million tonnes
Contains JORC/NI 43‐101 Recoverable Coal Reserves of 522 million tonnes
Amalgamation of Hinton East, Hinton West, Z‐Block and McLeod River North
Vista South Coal Project
Potential for satellite operation to leverage off Vista infrastructure
Contains JORC/NI 43‐101 Measured & Indicated Coal Resources of 93 million tonnes with further potential
Extensive drilling programs are underway
522mt of Recoverable Coal Reserves (260mt Marketable) from a large 920mt Measured & Indicated Resource base on open pit portion of Vista Coal Project only
GENTLY DIPPING AND CONTINOUS SEAMS
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Vista Coal Project is amenable to low cost Dragline and Truck/Shovel mining as seen in the nearby Prairie mines of Alberta’s mine mouth power generating region
Average 7 degree dipping coal seams that subcrop near surface, allowing for low strip ratio surface mining
The Silkstone seam which lies below the McPherson seam provides potential for additional resources that are not included in the current Coal Reserve estimate
Typical Cross Section
JORC / NI 43‐101 COAL RESERVES & RESOURCES
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JORC / NI 43‐101 Coal ReservesRecoverable Coal Reserves Marketable Coal Reserves
Proven ProbableProven & Probable
Proven ProbableProven & Probable
(Mt) (Mt) (Mt) (Mt) (Mt) (Mt)Export Product 349.2 79.5 428.7 185.9 42.7 228.7Domestic Product 66.2 26.8 93.0 22.5 8.9 31.4Coalspur Total Reserves 415.4 106.3 521.7 208.4 51.6 260.1
JORC / NI 43‐101 Coal Resources
Measured IndicatedMeasured &
IndicatedInferred
(Mt) (Mt) (Mt) (Mt)Vista Coal Project 588.9 331.6 920.5 282.3Vista South Coal Project 51.5 41.9 93.3 75.0Coalspur Total Resources 640.4 373.5 1,013.8 357.3
260mt Marketable Coal Reserves from 522mt of Recoverable Coal Reserves
1,014mt Measured & Indicated Coal Resources from Vista Coal Project & Vista South
Substantial exploration upside from Vista South and Silkstone seam
VISTA PROJECT EXPORT CLEAN COAL QUALITY
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Coal quality characteristics have been performed by independent coal quality experts
The coal has a very low sulphur content which qualifies as an ultra low sulphur coal
The Pre‐Feasibility Study assumed that the Vista Coal Project would receive a discount of approximately 6% against benchmark Newcastle pricing
Indicative Washed Clean Coal Quality – Vista Coal Project
Coal Characteristic Gross As Received Air Dried Basis
Moisture 12.0% 7.0%
Ash Content 10.5% 11.1%
Volatile Matter 32% 33.8%
Fixed Carbon 45.5% 48.1%
Total Sulphur 0.28% 0.30%
Calorific Value 5,800 kcal/kg 6,200 kcal/kg
WORLD CLASS INFRASTRUCTURE
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Ridley Terminal (12mtpa + Exp)
CN Rail (Excess Capacity Available)
9 MTPA SALEABLE ‐ PRE‐FEASIBILITY STUDY
Pre‐Feasibility Study confirmed potential for large scale (9mtpa Saleable), long life (31 year) & low cost operation on the Vista Coal Project
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PRE‐FEASIBILITY RESULTS – PRODUCTION
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Export coal will account for approximately 90% of the production during the life of the Vista Coal Project
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2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044
(mtpa)
Vista Coal Project Production Profile
Export Coal Domestic Coal
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Years 1‐10 Years 1‐20 Years 1‐31
Cost per Ton
ne (C$
)
FOB Costs ‐ Ridley Series3
Pre‐Feasibility Key Operating Costs Pre‐Feasibility Phased Capital Costs
PRE‐FEASIBILITY RESULTS – COSTS
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Coalspur will be investigating leasing options for the mining equipment fleet and/or contract mining options to reduce capital requirements
The incremental capital required to reach full production may be funded from operating cash flow from the Vista Coal Project
The Vista Coal Project will be able to maintain low operating cost per clean coal tonne produced due to low strip ratios and short haul distances
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Capital to First Production
Incremental Capital to Full Capacity
C$ M
M
CHPP & Infrastructure Development Project Indirects Mobile Equipment
Average Forecasted Wood Mackenzie Thermal Coal Price Over Period
EXPERIENCED EXECUTIVE TEAM AND BOARD
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Management has proven coal mine development, finance and operations experience within major mining houses
Board of Directors has significant experience in the capital markets
Executive TeamGene Wusaty ‐Managing Director & CEODenis Lehoux ‐ VP OperationsDermot Lane - VP DevelopmentDavid Leslie - VP Technical ServicesJohn Innis - Chief GeologistGordon Mudryk ‐Manager, Coal Processing and LogisticsAllan McGowan ‐Manager, Vista Project DevelopmentJay Bell ‐ ControllerChris Borowski ‐Manager, Investor RelationsTaso Arima ‐ Executive Director
Non‐Executive DirectorsIan Middlemas ‐ ChairmanColin SteynDenis TurcotteMark Pearce
2010 2011 2012 2013 2014
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
TSX Listing
Pre‐feasibility Study
Bulk Sample / Drilling
Environmental Field Program
Regulatory Process
Public Consultation
Vista Feasibility
Board Approval
Project Investment
Project Financing
Site Prep / Dewatering
Construction
Commissioning & Production
DEVELOPMENT TIMETABLE
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COALSPUR FURTHER UPSIDE POTENTIAL
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Vista Capacity Increase— Potential to increase coal production to +10 Mtpa in the Bankable Feasibility Study
development plan
Vista Project Enhancements— Contractors for pre‐strip and initial years of mining— Leasing of mining equipment
Silkstone Seam— Coalspur has intersected the Silkstone seam in 8 of the rotary drill holes to date— Silkstone seam subcrops along a trend of over 16 km gently dipping with surface mining
potential
Vista Underground Mining Potential— In 1984 Esso Resources completed a feasibility study that identified potential for
underground mining— Vista has the potential to be mined by conventional underground longwall mining
Vista South Exploration— Significant upside potential to add coal reserves to Vista Project development plan— Potential to consolidate additional target areas into a continuous strike length
CORPORATE INFORMATION
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Share Structure
Fully Paid Ordinary Shares 488.0 million
Market Cap Undiluted (@ C$1.85) C$902.8 million
Fully Diluted Shares Outstanding 651.8 million
Market Cap Diluted (@ C$1.85) C$1,205.8 million
TSX Share Price Performance
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Significant Shareholders
General Public27.1%
Other Institutional Investors26.4%
Directors, Management and Insiders
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Highland Park (ex. Lion Ore)
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Deans Knight Capital Mgmt.
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ASX Share Price Performance
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2011 ‐ NEXT STEPS
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TSX Listing Completed (October 2010)
Pre‐Feasibility Study Completed (December 2010)
Commence Bankable Feasibility Study (March 2011)
Vista Development Drilling & Bulk Sample Results (Mid‐2011)
Vista Resource Upgrade (Mid‐2011)
Vista South Exploration Drilling Results (Ongoing)
Vista South Resource Upgrade (Mid‐2011)
Project Off‐Take and Financing (3rd Quarter 2011)
Completion of Bankable Feasibility Study (4th Quarter 2011)
Receive Board Approval for Vista Project (End Year of 2011)
DISCLAIMER & REGULATORY DISCLOSURES
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This document has been prepared as a summary only, and does not contain all information about the Company’s assets and liabilities, financial position and performance, profits and losses, prospects and the rights and liabilities attaching to the Company’s securities. This document should be read in conjunction with any public announcements and reports (including financial reports and disclosure documents) released by Coalspur Mines Limited. The securities issued by the Company are considered speculative and there is no guarantee that they will make a return on the capital invested, that dividends will be paid on the Shares or that there will be an increase in the value of the Shares in the future. Further details on risk factors associated with the Company’s operations and its securities are contained in the Company’s prospectuses and other relevant announcements to the Australian Securities Exchange.
Some of the statements contained in this release are forward‐looking statements. Forward looking statements include but are not limited to, statements concerning estimates of coal tonnages, expected costs, statements relating to the continued advancement of the Company’s projects and other statements which are not historical facts. When used in this document, and on other published information of the Company, the words such as “aim”, “could”, “estimate”, “expect”, “intend”, “may”, “potential”, “should” and similar expressions are forward‐looking statements.
Although the company believes that its expectations reflected in the forward‐looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward‐looking statements. Various factors could cause actual results to differ from these forward‐looking statements include the potential that the Company’s projects may experience technical, geological, metallurgical and mechanical problems, changes in product prices and other risks not anticipated by the Company or disclosed in the Company’s published material.
The Company does not purport to give financial or investment advice. No account has been taken of the objectives, financial situation or needs of any recipient of this document. Recipients of this document should carefully consider whether the securities issued by the Company are an appropriate investment for them in light of their personal circumstances, including their financial and taxation position.
The information in this document that relates to Coal Resources is based on information compiled by Mr. Robert J. Morris, who is a Member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta. Mr. Morris is a full‐time employee of Moose Mountain Technical Services, who are consultants to Coalspur. Mr. Morris has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a “Competent Person” as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (“JORC Code”), and a “Qualified Person” under NI 43‐101. Mr. Morris consents to the inclusion of such information in this news release in the form and context in which it appears.
The information in this document that relates to mining engineering and Recoverable Coal Reserves is based on information compiled by Mr. Robert Fong, who is a Member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta. Mr. Fong is an associate of Moose Mountain Technical Services, who are consultants to Coalspur. Mr. Fong has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a “Competent Person” as defined in the 2004 Edition of the JORC Code, and a “Qualified Person” under NI 43‐101. Mr. Fong consents to the inclusion of such information in this news release in the form and context in which it appears.
All other scientific and technical information in this document is based on information compiled by Mr. Eugene Wusaty, who is a Member of the Association of Professional Engineers and Geoscientists of Alberta. Mr. Wusaty is a full‐time employee of Coalspur. Mr. Wusaty has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a “Competent Person” as defined in the JORC Code, and a “Qualified Person” under NI 43‐101. Mr. Wusaty consents to the inclusion of such information in this news release in the form and context in which it appears.
Calgary Office Hinton OfficeSuite 880, 550 11th Avenue SWCalgary AB , T2R 1M7, CANADA
114 Jasper Street P.O. Box 6146Hinton AB, T7V 1X5, CANADA
GENE WUSATYMANAGING DIRECTOR & CEO+1 403 261 9997
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THE BEGINNING