Aussie?s OGL completes drilling at E. Kalimantan project

Australian firm Overseas & General Limited (OGL) said on Wednesday that it has completed resource drilling at its Rahmat steaming coal project near Samboja, East Kalimantan.

Thirty-seven drill-holes were completed for a total of 1,121 meters open hole and 52 meters core drilling. All holes have been down-hole geophysically logged. Seven holes were partly cored and 8 samples analyzed for Proximate Analysis. More detailed analyses are currently being carried out, the company said.

Drilling has confirmed the presence of two seams at shallow depth existing throughout the lease.

Each seam sub-crops in the northern part of the lease and dips gently south at around 10 degrees. The seams are separated by some 15 to 20 meters of sediments, which are predominantly siltstones with some inter-bedded sandstone. The upper seam is normally 1.5 to 2.0 meters thick and the lower seam 2.0 to 2.5 meters.

Surveying over the entire lease is complete. Once the Company receives the topographic mapping and detailed geological modeling, the mine planning will be carried out.

OGL expects to be able to report J ORC resources and reserves following this evaluation.

OGL has chosen a mining contractor, negotiated contract terms and requested equipment mobilization for late July 2010. No impediments to early commencement of operations have been determined. An existing haulage route east to the coast has been determined and negotiations are being finalized for use of this road and crushing, loading and port facilities at commercial rates.

This has ensured short development lead times and minimal capital expenditure. OGL envisage operations of around 50,000 tons per month coal production with first coal sales in August 2010. (denny)