Aussie's OGL updates E. Kalimantan coal project
Monday, May 31 2010 - 07:16 AM WIB
"Following OGL?s recent public release on securing a Contract to Mine with CV Rahmat Nikmat at Samboja in East Kalimantan, the Company advises resource definition drilling, coring and sampling, and down hole geophysical logging has commenced. Two Jacro 1 00-type drilling rigs are operating on site with current plans for a 3-week program followed by topographic mapping. The first hole intersected a coal seam with thickness greater than 1.5 metres at a depth of 6 metres below ground surface. Core shows coal to be bright and shiny black in appearance. Core samples are being collected and despatched for analysis with first quality results expected next week.
OGL?s objectives are to define a small mineable tonnage of reasonable quality coal and commence initial mining operations as soon as practicable. Immediately following drilling, mining pit design and equipment scheduling will be carried out. As the Rahmat lease is less than 100 hectares, a simple mining and environmental study (UKL/UPL) is required for approval by the district government, unlike the comprehensive AMDAL required for larger leases and approved by the central government. Preparation of the UKL/UPL has commenced. Water and soil samples have been taken for testing, as have joint site visits by the various local government departments to demarcate land ownership and land use boundaries. No impediments to early commencement of operations have been determined to date with mining operations still planned for late July 2010. Providing adequate tonnages of coal of acceptable quality are defined, OGL envisage operations of around 50,000 tonnes per month thermal coal production.
Joint Operating Agreement Signed on Pagar Coal Lease in Indonesia
Overseas & General Limited (?OGL?) is pleased to announce that, through its majority owned Indonesian joint venture company, PT OGL Indotrade Resources, it has entered into a joint operating agreement with the owners of PT Pagar Benua Borneo covering 10,000 hectares in the West Kutai district of East Kalimantan. The lease is located in an established thermal coal-mining region of Kalimantan. An initial small payment has been made to secure the contract and a royalty will be paid to the owner through the life of the project. No other payments arc necessary. Preliminary reconnaissance by OGL has revealed the presence of some very high energy coal in the lease, some potentially coking coal. OGL has commenced regional exploration with objectives to locate a medium sized, good quality coal resource which can be fast tracked into early production. Several alternative transportation routes are being considered to take the coal to the coast for transhipment. Existing infrastructure in West Kutai is reasonable as the area becomes one of the leading coal mining regions of Indonesia". (end of excerpt)