CPL - (TSX: CPT) is pleased to announce the completion of the...

CPL - (TSX: CPT) is pleased to announce the completion of the Pre Feasibility Study (?PFS?) on the Company?s flagship Vista Coal Project .

The PFS defined a 31 year mine life producing approximately 9.0 million tonnes per annum of saleable coal from the processing of approximately 18.0Mtpa of run of mine coal.

Managing Director and CEO, Gene Wusaty said The PFS is a landmark study as it is the first comprehensive study to assess the potential of the consolidated Project area.
Production of 9.0Mtpa saleable coal over a 31 year mine life has exceeded our expectations and confirmed that the VCP is now a strategic world scale project.

The VCP has the potential to create one of the largest first world export thermal coal developments with existing modern rail and port infrastructure and will elevate Coalspur into the top echelon of global export thermal coal developers?.

Low infrastructure costs to first production of only C$327 million highlight the importance of the Project?s location and access to underutilised rail facilities that lead to an underutilised world class port.

Coalspur will continue to refine the PFS ahead of the commencement of the Bankable Feasibility Study which is expected to begin in the first quarter of 2011. Furthermore it should be noted that the VCP provides a base from which to develop other coal resources in the area, notably the Vista South Coal Project and other surrounding and contiguous properties.

The development of the mine is planned to be completed in two phases to enable the Company to use an existing mine permit which covers the eastern half of the VCP. The existing mine permit provides for the first phase construction of a 4.2Mtpa operation. In addition to improving initial development timelines, this phased approach will reduce the upfront capital required before achieving significant operating cashflows.

The PFS schedule shows the second phase production beginning two years after the initial first phase such that full production capacity of 9.0Mtpa is achieved in the fourth year of operation. The PFS first phase development schedule is based on the existing mine permit enabling the project to secure all other regulatory requirements.

Wood Mackenzie has forecast a coal price of US$95/t in Year 1. This increases gradually to US$105/t by Year 10 and then US$111/t from Year 17 onwards.

Very nice, wish I could highlight some of that .... Wood Mackenzie's forecast is very conservative considering US$105/t is ~the current price and that is rising fast.