Challenger signs formal mining, marketing agreement for ABBR project
Friday, June 28 2013 - 12:25 AM WIB
Calgary-based coal exploration firm announced that through its wholly owned subsidiary PT Bestindo Energy (BE), it has signed a formal exclusive mining and marketing agreement for the Alam Bahtera Barito Raya (ABBR) coal project in Central Kalimantan.
The company said in a statement received Thursday that the initial term will expire in 2020 with an option to extend beyond that date.
The ABBR licence lies adjacent to Challenger's KEM license where drilling activity is taking place on the initial areas scheduled for production. Challenger's due diligence field work on the ABBR Project has confirmed the presence of at least 16 seams which are the strike continuity to the east of seams exposed in the KEM license area.
Due diligence test pitting and outcrop sampling have confirmed coal quality ranging from GAR 6,022 to 6,330. Outcrop width of seams discovered to date vary from 0.2 - 2m. Drilling is to commence immediately on the extension of seams currently being drilled on the KEM license area. These seams are projected to strike for a distance of 1.8 km through ABBR license area.
Ranjeet Sundher, President of Challenger commented, "The signing of the ABBR project is an integral part of the overall Barito Project for Challenger. With the mining licenses and infrastructure in place, combined with the high quality of coal, we believe we can build a profitable coal production company that is sustainable and highly scaleable."
Editing by Reiner Simanjuntak