Churchill lifts E. Kalimantan coal reserves target by 50%

UK miner Churchill Mining announced on Tuesday it has lifted overall project initial coal reserve target of its East Kutai Coal Project (EKCP), East Kalimantan by 50% from 100 MT to 150 MT.

The increase is part of the ongoing review of the drilling and exploration programme at EKCP, the company said.

A review of the total initial coal resource target is also being conducted and Churchill will advise the market of the result in due course, it added.

The company is now deploying 2 of its rigs to concentrate on an intensive drilling programme covering an area approximately 6 kms by 2 kms, which has the potential to form part of the project's first mine-pit. The mine-pit target drilling is in an area that includes part of the new blocks added to the project in April, 2008. The 6,200m of drilling in the mine-pit target area is expected to be completed in 3 months, enabling calculations on the mining reserve to be brought forward.

The drilling programme is well ahead in terms of metres-drilled versus results-gained with 9,000 metres drilled to date against the annual plan to drill 65,000 metres.

A third rig continues drilling at the southern extension of the current drilling area at EKCP, expanding the coal resource and determining potential areas for any further mine-pits. A fourth rig is expected to be added in due course.

Trans Tek Engineering is in the process of completing the General Scoping Study on the EKCP, with emphasis on the transportation and infrastructure requirements from mine-site to port. The results of the Study are expected to be completed at the end of June and no technical hurdles have arisen that would prevent a coal mine from being developed. (alex)