Adavale updates Indonesian coal projects
Tuesday, January 31 2012 - 06:45 AM WIB
SUMATRA
ADAVALE NUSANTARA RESOURCES (ANR) (Wholly owned subsidiary of ARL)
TAPAN PROJECT (100% ANR)
ANR has finalised the acquisition of PPA ? the company that owns the Tapan coal concession.
ANR has previously carried out substantial exploration on the project, managed by ADA Strategic - a local consulting group. This initial program was carried out in a small percentage of the concession area and a program to identify total potential resources and reserves is being planned.
During the quarter the company held meetings with members of local government, the mines department and local communities in preparation for required exploration activities.
Since ANR completed the initial exploration program, there have been changes in the boundaries of the communities, and accordingly there was the need to meet with the new communities to clarify the company?s intentions and to understand community expectations.
During the quarter a team of geologists and representatives of ANR were sent to the area to carry out geological and community development reconnaissance over the greater area proposed for exploration and development.
The Company has maintained its intention to increase the area for exploration and is in discussions with the appropriate authorities. Expanding the land holding will allow the company to access the potential the area hosts. Expressions of interest have been received from parties interested in entering into a joint venture to develop and mine the Tapan project and discussions are ongoing.
KALIMANTAN
ADAVALE HARNER RESOURCES (AHR) (60% ARL)
SOUTH KALIMANTAN
Following initial legal and technical due diligence and a comprehensive risk analysis, the company has signed an agreement with PT. Putra Batulicin Menbangun (PBM). Finalisation of the agreement is subject to PBM satisfying certain conditions precedent.
PBM sits on 451ha, located approximately 30 kilometers northwest of Batulicin and is currently in production. Mining is by the vendor who is producing approximately 20,000 tons per month of 6300GCV coal. Under the agreement being negotiated, AHR would have the right to increase existing production and to re-enter two existing pits. AHR has carried out a field survey and is satisfied the concession represents an economic opportunity. On completion of the agreement AHR will carry out a drilling program to confirm geologist expectations and if satisfactory will proceed to mining.
EAST KALIMANTAN
During the quarter the company signed a Memorandum of Understanding (MOU) on the Mada Perkasa concession. The concession is 496Ha in area and is located approximately 20k north of Samarinda.
The MOU is with lndotama Bara Surya who holds the rights to mine the Mada Perkasa concession. The formal agreement that will follow the MOU is based on a Joint Operation with an 80/20 share of the profits. Legal and technical due diligence is in progress.
AHR continues to review projects in East and South Kalimantan. The projects are screened to meet minimum criteria and are in strategic locations with good logistics.
During the quarter the company conducted geological field trips and continued with legal and technical due diligence on selected projects.
Previous agreements that have expired remain in the company database. (end of excerpt)