APAC Coal appoints drilling contractor

ASX-listed firm APAC Coal Limited has appointed PT Dunggio Drilling to conduct drilling in the Bekosos Lempesu block in East Kalimantan owned by its subsidiary PT Batubara Selaras Sapta.

?The (drilling) targets have been identified, and that the preparation of the base camp for our technical team to supervise the drilling team is ongoing,? the company said in a statement on Wednesday.

The drilling program is expected to start in early May 2009, the firm said, adding Dunggio Drilling will deploy two drill rigs running at 2x10 hours shift per day basis. The plan is to complete the infill drilling in the 890-ha area of the block in mid June 2009.

The drilling program will be supervised by Ravensgate Geologists to ensure compliance to standards with particular reference to core retention and sampling.

The works by Dunggio Drilling is expected to further define grade distribution and extend the quantitative value of the potential coal tonnage in the 890-ha area of the block, the firm said.

APAC through its subsidiary PT.Deefu Chemical Industries has 100 percent stake in Batubara Selaras Sapta, which has a 68,360-ha mining concession in Pasir regency, East Kalimantan with JORC-compliant resources of 5.12 million tons. The mine is now in pre-production stage. (Denny)