BlackGold unveils threefold increase in coal reserves of Riau concession

By Romel S. Gurky

SGX-listed coal firm BlackGold Natural Resources Limited announced Thursday that its Coal Reserves at its PT Samantaka Batubara coal concession in Riau Province as at June 9, 2017 have more than tripled from its last reported estimates, which were announced on August 8, 2016.

The company said in a statement Thursday that the Coal Reserves and Coal Resources have increased by 227 percent and 150 percent respectively, according to its latest independent qualified person?s report for the financial year ended December 31, 2016 (2016 IQPR), which was prepared by the company?s independent consultant, PT GMT Indonesia (PT GMT). Total Coal Reserves estimates at PT SB Concession increased from 45 million tons to 147 million tons, while Coal Resources estimates increased from 210 million tons to 520 million tons. The reported Coal Reserves assume and is dependent on the company being successful with its bid to supply 3.5 million tons of coal per annum to the Riau 1 Mine-Mouth Power Plant. ?The company is of the opinion that there is a reasonable expectation that the current bid (to supply coal to the Riau 1 Mine-Mouth Power Plant) will proceed,? it said in the statement.

PT GMT?s report was prepared according to the guidelines of the internationally accepted Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia, December 2012 (the JORC Code 2012).

Coal Resources refer to coal of such form, quality and quantity that there are reasonable prospects for eventual economic extraction. Coal Reserves are defined as the economically mineable part of a Measured and/or Indicated Coal Resources. Coal Reserves are divided in order of increasing confidence into 1) Probable Coal Reserves and 2) Proved Coal Reserves. Proved Coal Reserves refer to the amount of coal that can be extracted with a level of certainty that is higher than that of Probable Coal Reserves. Coal Resources reported are inclusive of those Coal Resources converted to Coal Reserves.

?We are very encouraged by the stellar growth in our coal assets.? commented Philip Rickard, the Chief Executive Officer of the Group. ?The substantial increase in PT SB?s Concession?s Coal Reserves accelerates the Group?s strategy of becoming a major coal producer in Indonesia. We are also very pleased as this affirms the sufficiency of BlackGold?s Coal Reserves, enhancing our abilities to negotiate increases for future coal deliveries to our existing customers, and for the planned 30-year exclusive coal supply to a 2 x 300 MW coal-fired mine-mouth power plant (the Riau 1 project).?

Table: Reserves and Resources Estimates for PT SB Concession as at June 9, 2017 (Reference to page xix of the 2016 IQPR)

?		Gross Attributable to Licence		Net Attributable to Issuer
Category	Mineral Type	Tonnes (Mt)	Grade/Rank	Tonnes (Mt)	Grade/Rank	Change from Previous Update (%)
Reserves Proved Probable	? Coal Coal	? 55 92	? Lignite Lignite	? 55 92	? Lignite Lignite	? - 104
Total	Coal	147	Lignite	147	Lignite	227
Resources Measured Indicated Inferred	? Coal Coal Coal	? 140 250 130	? Lignite Lignite Lignite	? 140 250 130	? Lignite Lignite Lignite	? 324 108 136
Total	Coal	520	Lignite	520	Lignite	150

Editing by Reiner Simanjuntak