UPDATE 1-Grande Cache Q2 profit drops 80 pct on weak coal prices

* Q2 EPS C$0.09 vs EPS C$0.51 year-ago

* Q2 rev down 42 pct to C$44.8 mln

* Raises FY sales volume view

* Sees FY capital spending of C$85 mln

Nov 10 (Reuters) - Canada's Grande Cache Coal Corp's (GCE.TO) quarterly profit dropped about 80 percent, hurt by weaker coal prices that tumbled from year-ago high levels, but topped estimates on lower costs.

For the second quarter ended Sept. 30, the company earned C$9.3 million, or 9 Canadian cents a share, down from C$47.1 million, or 51 Canadian cents a share, a year ago.

Revenue fell to C$44.8 million, as the company sold coal at an average sales price of C$124 a tonne, down from C$223 a tonne, year ago.

The company was expected to report earnings of 2 Canadian cents a share, on a revenue of C$44.1 million, according to Thomson Reuters I/B/E/S.

Cost of sales during the quarter was C$84 per tonne, down 19 percent, largely due to a decrease in costs relating to contractor services, maintenance and diesel fuel, the company said.