One of the best performing coal stocks of 2010, with its shares starting the year in the 30c range and ending it at $1.95, Coalspur has kicked off second-phase development drilling ahead of an upcoming bankable feasibility study.

“The potential for additional reserves from underground longwall mining in Vista provides Coalspur with an exciting opportunity to increase the production capacity of the potential mine,” Coalspur managing director and chief executive Gene Wusaty said.

While there is a program of 16 rotary drillholes designed to upgrade the resource classifications, two of 10 coreholes to investigate coal quality will also be drilled deep to assess possible geotechnical conditions for longwall mining.

The potential for underground mining in the area had already been identified by a feasibility study completed by Esso Resources back in 1984.

“Based on that study, the company believes that the deeper areas of the over 20-kilometre strike length of gently dipping, multiple coal seams within Vista have the potential to be mined by conventional underground longwall mining methods,” Coalspur said.

The explorer expects the second-phase drilling programs to be completed later in the March quarter.

The Vista prefeasibility study completed in December expected a 31-year mine life for 9 million tonnes per annum of saleable thermal coal production from open cut mining.

Unlike many other proposed coal mines, the Vista project can hook up to nearby and existing rail for haulage to under-used coal export terminal infrastructure.

The Vista project holds 1.37 billion tonnes of total resources, aided by further property acquisitions last year.

Coalspur shares closed down 4c to $1.90 on Friday.