The study, by Golder Associates, is based on a coal resource estimate of 173.7 million tonnes in the measured and indicated categories and 969.3Mt in the inferred class.

It confirms the potential for strong economics on the Vista extension which has the capacity to generate $C153 million ($US152.4 million) per annum operating cash flow.

Coalspur will undertake additional drilling and technical studies to validate Vista extension’s potential.

Vista extension gets the benefit of infrastructure built for Coalspur’s adjacent Vista project.

It includes the coal handling and processing facilities.

Coalspur president and chief executive officer Gill Winckler said the scoping study validated the decision to buy the leases earlier this year.

“We believe that Vista extension provides more development optionality for Coalspur and a platform for capital efficient production growth,” he said.

However, while acknowledging the potential the extension program brought, Winckler stressed Coalspur would remain focused on securing funding and regulatory approvals for the Vista project.

Its flagship Vista project is scheduled to be developed in two phases.

Phase 1 will produce 5 million tonnes per annum and phase 2 will produce another 7Mtpa.

The capital cost for phase 1, which already has a mine permit and processing plant approval, is $870 million. Another $373 million is needed for phase 2.

In all, about $1.2 billion is slated for 12Mtpa in production.