Aussie's OGL updates E. Kalimantan coal projects

The following is an excerpt taken from Quarterly Report of Australian mining Overseas &Generala Limited published on Friday (ed).

Rahmat Coal Project
? OGL Indotrade has secured the coal rights of the Rahmat coal project through a Contract to Operate with the owners of the lease.
? Resource definition drilling was completed in early July with encouraging results.
? Two seams with thicknesses of between 1.5 to 2.5 meters were intersected throughout the lease area.
? Quality is good with adb GCV of 5,550, ash of 4% and sulphur 0.3%.
? Detailed geological modelling and mine planning is being carried out and OGL expects to be able to report JORC resources and reserves following this evaluation.
? Mining operations are on schedule for an August commencement with first coal sales in September 2010.
? OGL Indotrade has chosen a mining contractor, negotiated contract terms and requested equipment mobilisation 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 finalised for use of this road and crushin& 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 tonnes per month coal production with first coal sales in September 2010.
?OGL has entered into a Memorandum of Understanding (MOU) with Chinese entity Zhejiang Materials Industry Fuel Group Co. Ltd as a preliminary step towards the determination of a Supply Contract for the Rahmat coal.

Pagar Coal Project
? OGL Indotrade 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.
? Preliminary reconnaissance at the Pagar coal project has revealed the presence of some very high energy coal in the lease which is part of the coal bearing Eocence Tanjung Formation.
? A regional geological mapping program is planned for Pagar over the later part of 2010.

Jambi Coal Project
? OGL Indotrade has entered into an Option Agreement Term Sheet to secure the rights to coal within the Chandra and Sokki leases in Jambi.
? Small quantities of good quality thermal coal were mined at Chandra during 2009 however ceased when the owners ran into difficulties through lack of experience and capital.
? Coal seams range up to two metres in thickness with shallow dips. (end of excerpt)