Churchill Mining updates E. Kalimantan coal project

UK miner Churchill Mining PLC announced on Tuesday it has now deployed its two drilling rigs to the primary coal resource targets in the northern and central areas of the main tenements at the Sendawar Coal Project in East Kalimantan.

The company is looking to further accelerate the drilling programme by contracting a minimum of another three drilling rigs with the aim to outline as quickly as possible an initial mining reserve of five million tonnes, as part of an overall target of a first resource of 200 million tonnes in the primary target area, it said.

Churchill has just completed the initial pilot phase drilling programme and appraisal work at the south east of the main tenement area and on the tenement known as AAM, which is separate and to the east of the main tenement area. This work on secondary areas was undertaken at this time and ahead of the primary coal resource targets, so as to take advantage of the dry season.

A total of 1,412 metres were drilled for the initial pilot phase drilling programme, comprising 431 metres of open hole and 981 metres of coring. These holes were all drilled in the southern and eastern areas of the AAM tenement, to test the continuation of a number of high-quality coal seams located during the programme on the eastern boundary of the tenement. Results confirm that the AAM block remains highly prospective for semi-soft coking coal, said the company.

Two samples were analysed from coal outcrops during the month. One sample was taken from the eastern lease boundary of AAM whilst the other was collected from Sungai Gusi in the AAM block. The results are encouraging and confirm the presence of high quality coal in the AAM area.

In particular, the samples are notable for their high calorific value but low sulphur content.

An exploration team will remain in the AAM block to continue mapping along strike from the areas tested by pilot drilling and, by utilizing this data, will continue to expand the geological model of the coal occurrences in the area. In particular, the effects of faulting within the prospective sediment formation are yet to be fully determined and this will be critical in optimizing future drilling programmes. Teams have only covered 25% of the AAM block to date and drilling will recommence in the block when the geological coverage has been completed and the geological model confirmed.(alex)