Adavale updates Indonesian coal projects
Wednesday, July 30 2014 - 02:32 PM WIB
Adavale Harner Resources (AHR) (Wholly owned subsidiary of ARL)
PPU 1 Coal Project
At this period, AHR have been conducting initial assessment including desktop study and preliminary field survey that covering geological assessment, potential deposit and current logistic conditions of the PPU 1 project which previously have experienced less than 20 thousand tons/month of coal production in 2 small pits inside less than 100 Ha prospect with minimum critical mining operation facilities established.
As part of initial legal due diligence, AHR is also continuing to check and confirm the clean and clear status of the tenement to the government. Planning has now continued to conduct an additional geological mapping to other potential prospect areas together with confirmation drilling for the previous mining area, and also some stratigraphy drilling to and interpret the lateral extent of identified coal seams distribution, in order to assess a potential resource of GCV 5500-6500 (ADB) coal within the concession. Subject to completion of technical and legal due diligence particularly Clean and Clear status and reaching satisfactory terms, the company intends to enter into a formal agreement to acquire the project.
Paser Project
Discussions have been commenced and continued with Paser Project on a potential joint operation with AHR to mine several blocks of project concession. The coal quality is GAR 5600-?‐6000. Due diligence is currently being undertaken on the proposal which includes use of all infrastructure assets owned by Paser Project.
The project owns and operates coal handling and barge loading infrastructure approximately 12km from the mine site and 40km or 87km for barging to Adang Bay Transshipment. Previous loading capacity is rated at around 200tph. The Company expects to decide within 3 months whether to proceed with the joint operation, subject to completion of due diligence and reaching satisfactory term
Anggana Project
The concession of Anggana Project is located and lies in a prolific mining area in Kutai Kartanegara regency, East Kalimantan, approximately 25km East of Samarinda and covers 3,890Ha IUPOP area. Based on initial information, mining has been taken place previously at small open pits with the production capacity less than 30,000 tons/month of low rank thermal coal with typical analysis (air dried basis): 4,700-5,400 Kcal/kg, 0.3-0.7% total sulphur, 8-10% total moisture, 4-8% ash. The previous mining activity is in the early stages of mining of nearsurface coal seams with thicknesses varying from 1.5-8 m and average thickness 4 m. The coal bearing formation consists of 2 formations, Balikpapan and Kampungbaru which hosts low-medium quality thermal coal, which approximately takes place in 90% of the concession area.
The project offers an opportunity for a low cost operation centered on opening the near-surfacepits and using the operations as a base to expand to the multiple seams target within.
Perkasa Prima Abadi (PPA)
Tapan
Tapan Exploration Tenement (IUP Ekslplorasi) no. C516/126/KPTS/BPT-PS/2010 with the total area of 2053.92 has been granted Clear and Clean Status by the government while Production Tenement (IUP Produksi) No. C540/432/KPTS/BPT-PS/2010 with the total area of 198.88 Ha is still in progress of obtaining the Clear and Clean Status. Tapan coal project located in West Sumatra.
The district court ruling that was due on 23rd July 2014 has been rescheduled to mid August 2014. (end of excerpt)