Adavale to start W. Sumatra coal project JORC program

ASX-listed junior exploration firm Adavale Resources Limited start joint ore reserves committee (JORC) program at its Tapan coal project in West Sumatra to prove up a measured coal resource in late December this year.

Seven coal seams have been identified within the exploitation area which provides an inferred coal resource at 15 million tons (Mt), the company said on Tuesday.

The Tapan mine has 5,000 ha of exploration area and an exploitation license covering initially 198.7 ha within the exploration area. The coal specifications are gross calorific value between 5,800-7,100 Kcal/kg (ADB); Ash 6-19%; Total Sulphur 0.43-0.69% and Total Moisture 7.6-10.8%, it said.

In October 2009, Adavale entered into an agreement with United Energy and Resources to acquire the rights to two thermal coal projects, respectively located in Tapan and Jambi.

Under the agreement, Adavale will fund an initial exploration program to seek inferred coal resource at the Tapan project to a measured coal resource of 5 MT.

First production at Tapan is targeted in the second quarter of 2010.

The company is expected to develop Jambi after Tapan. Preliminary drilling and trenching has identified an inferred coal resource in excess of 20 MT at Jambi.

Adavale has acquired United?s rights to a MOU over four coal concessions in Jambi. Adavale?s initial target is within an exploration are of 10,000 ha close to the provincial capital of Jambi. (denny)