I certainly believe Vista South could operate as a satellite mine producing approx 4 mil tonne pa eventually down the track but possibly not for 4 -5 years. In addition, longwall mining of underground reserves certainly increases the overall attractiveness of CPL as a whole and maybe CPL may look to increasing tonnages through underground methods if profitable. As Gene said in a recent article "this is a beast".
However, on Vista South I am a little confused. Is anyone able to clarify whether the second phase drilling on Vista South actually commenced in Nov/Dec 2010? The reason I ask is that there is conflicting information in CPL releases as to what the Vista South status is.
CPL release 3 Nov 2010 "Coalspur is preparing a larger second phase of drilling commencing before year end to further define resources in the Vista South leases"
CPL release 3 Nov 2010 "The second phase is planned to begin in November 2010 and will consist of 30 rotary and diamond drill holes".
From Vista South Technical Report 15 Dec 2010 pg 58
"The budget costs for this proposed work program, which is currently underway"
Article in Mining Monthly Nov 10 "Vista South resources indicated to us that there was some potential so in the next month we are going to go out there and drill the second phase".
Dangerboy on Stockhouse Jan 2011
"They are working approx 18 kms south of Hwy 16 and approx 4 kms east of Hwy 40".
"2 rigs working right now and still showing signs of good intersect. I'm not on site but very close enough to know". This would place them within Vista South leases.
The above is all in contrast to the release last week which mentions in relation to Vista South on pg 5
"First phase drilling in the area together with existing historical information has allowed the Company to define an initial Measured and Indicated Coal Resource of 93 million tonnes. Further drilling and potential resource upgrades are scheduled during 2011 on Vista South".
Can anyone provide clarity?
Regards Danash
CPL Price at posting:
$1.83 Sentiment: LT Buy Disclosure: Held
(20min delay)