Challenger signs formal KEM mining, marketing agreement
Wednesday, April 3 2013 - 03:02 AM WIB
TSE-listed Challenger Deep Resources Corp. said that, through its wholly owned subsidiary, PT Bestindo Energy (BE), it has signed the formal exclusive Mining and Marketing agreement for life of mine of the Kara Elmas Madenleri (KEM) Project in Central Kalimantan.
This agreement replaces the previously announced Exclusivity Agreement, the company said in a statement on Tuesday.
Challenger's due diligence field work on the KEM Project has confirmed the presence of at least 13 coal seams dipping at 12-35 degrees to the North. The seams are developed within the Warukin formation and structurally form part of a gently North plunging synform. The overall dip and geometry of the seams confirm the availability of low strip ratio coal.
Test pitting and outcrop sampling have confirmed coal quality ranging from GAR 5,860 to 6,560. Seams targeted for mining vary in width from 0.5m to 3.5m. Sample analysis summarized below:
| No. | Outcrop or ROM Coal | TM | IM | Ash | VM | FC | TS | GCV (Kcal/Kg) | ?GCV (Kcal/Kg) | HGI |
| %, AR?????? | %, ADB | ?%, ADB | %, ADB | %, ADB | %, ADB | ADB | GAR | |||
| 1 | Test pit | 13.12 | 9.55 | 2.68 | 40.01 | 47.76 | 0.46 | 6,600 | 6,340 | 48 |
| 2 | Test pit | 16.61 | 12.33 | 4.22 | 40.70 | 42.75 | 0.47 | 6,168 | 5,867 | 43 |
| 3 | Outcrop | 8.98 | 6.42 | 6.38 | 46.37 | 40.83 | 1.75 | 6,744 | 6,560 | ? |
| 4 | Outcrop | 17.50??????? | 9.43 | 2.10 | 54.96 | 33.51 | 0.31 | 6,908 | 6,292 | 57 |
| 5 | Outcrop | 14.95?????? | 10.85 | 6.31 | 37.82 | 45.02 | 0.50 | 6,139 | 5,857 | ? |
| 6 | Outcrop | 16.80????? | 12.38 | 2.30 | 39.59 | 45.73 | 0.39 | 6,301 | 5,983 | ? |
| ? | Average???? | 14.66 | 10.16 | ?4.00 | 43.24 | 42.60 | 0.65 | 6,477 | 6,255 | 49.33 |
A mining and geological team is currently on site to establish a mining plan for production which is scheduled to commence in the last quarter of 2013.
Ranjeet Sundher, President of Challenger commented, "The Barito Project is the ideal production scenario for Challenger. With the mining licenses and infrastructure in place, coupled with the high quality of coal, we can build a cash-flow company that is sustainable and scaleable."
All outcrop and test pit samples were processed by SGS Coal Laboratories, Samarinda, East Kalimantan. Industry standard Quality Control and Quality Assurance protocols were employed in the sample acquisition, preparation and analysis procedures.
The Qualified Person (as defined by NI 43-101) responsible for the review, verification and approval of the technical material presented in this news release is Mr. Andre Talaska, a director of PT Bestindo Energy, a wholly owned subsidiary of Challenger.
Editing by Reiner Simanjuntak