Projects Overview

 

Hinton Coal Project - Project Location

 

Hinton Coal Project - Coal Lease Locations

Hinton Coal Project

The Hinton Coal Project ("HCP") is a large scale, open pit potential, thermal coal project located adjacent to the main line of the CN Rail near Hinton, Alberta, Canada.

The leases comprising the HCP cover approximately 4,976 hectares and together contain a JORC Coal Resource of approximately 467 million tonnes of low sulphur, high volatile, bituminous C thermal coal. The HCP is split into Hinton East and Hinton West. Hinton East comprises six coal leases covering approximately 3,984 hectares whilst Hinton West comprises 2 coal leases and 3 coal lease applications covering 992 hectares.

The Coal Resource and associated coal quality assessment have confirmed HCP’s potential to develop into a large scale, open pit, thermal coal operation producing high quality coal suitable for export into the lucrative Pacific Rim market.

Coalspur has established a Canadian head office in Calgary, Alberta which will serve as the centre for the development of the Project with a site office in the town of Hinton, Alberta. The town of Hinton is in close proximity to the Project and will serve as the Project operational center. The Company has commenced a scoping study on the HCP, the results of which are expected to be complete in the March 2010 quarter.

Coalspur Project

During 2008 and 2009 additional coal leases comprising the Coalspur Project ("CSP") were applied for and granted over an area covering approximately 19,671 hectares located adjacent to the HCP. The CSP was subject to previous drilling by Denison Mines Ltd in the 1980’s. A detailed geological resource review of the CSP leases has commenced and is expected to be completed in the March 2010 quarter.

Importantly, the proximity to the HCP allows for the CSP to leverage off potential infrastructure that will be developed closer to the town of Hinton and the main line of the CN Railway.