Coal Fe commences debut at ASX
Friday, April 13 2007 - 05:00 AM WIB
The funds raised through the IPO would be used to progress its exploration programs in Palapa and Abadi coal projects, which are located in South Sulawesi and East Kalimantan, respectively, and commencement of full feasibility study at Kilisuci coal project in Bengkulu, which is expected to be completed before year-end.
The company also said it would consider to get involved in coal trading activity later this year and said it was keen to acquire more coal projects, iron and other mineral after IPO.
The Abadi Project
The Abadi Project is located in the district of Muara Badak and Anggana, in the sub-province of Kutai Kartanegara. The general survey covers an area of 1,017 hectares. The results from the general survey based upon outcrops and test pits show that there are 10 seams of coal.
Key summary points of the Abadi Project are:
It has an exploration licence over 1,017 hectares of land; Preliminary assaying indicates that the coal in the Abadi Project area in East Kalimantan ranges from 5,500 to 5,800 Kcal/kg; It takes approximately 1 hour by road to reach the Abadi Project from Samarinda Town. The nearest jetty for transportation of coal utilising the Mahakam River is approximately 40km away.
Palapa Project
The Palapa Project is located within the district of Kecamatan Baraka, Kabupaten Enrekang, South Sulawesi Province.
The geology comprises the Latimojong formation which is dominated by marbles and the Toraja formation consisting of predominantly sandstone, quartz and conglomerate quartz up to 1000m. The Toraja formation is a combination of sand stone and lava flow.
The general survey covers an area of 100 hectares. The coal seam strikes predominantly South East to North West with a dip of 30?70 degrees with thickness of between 5-20 metres.
Key summary points of the Palapa Project are:
It has an exploitation licence over 100 hectares of land; Preliminary survey indicates that the coal at the Palapa Project in South Sulawesi will have an average calorific value of about 5,802 Kcal/kg.
The Palapa Project is located approximately 300 km from Makassar City via Pare Pare
The Kilisuci Project
The Kilisuci Project is located 82 km from the city of Bengkulu in South-West Sumatra. Road transportation from Bengkulu takes approximately 3 hours. The distance from Bengkulu to the Bugamas Village is 62 km. The road is part of the Western Sumatra Highway and the mining location can be accessed by a gravel road from Bungamas Village. The total distance for transportation of coal from the stock pile at the mining location to the Pulau Baai export harbour is approximately 77km.
Two coal seams have been found at the Kilisuci Project with thickness of the seams ranging from 0.45 to 4.7 metres.
Key summary points of the Kilisuci Project are:
It has an exploitation licence over 663 hectares of mining land and an exploration licence over 1,337 hectares adjoining the land; The Company's targeted objective is to prove up an open cut mineable deposit at a waste to coal strip ratio of 5:1 or better; Preliminary surveying indicates that the coals in the Bengkulu area in South Sumatra will have an average calorific value of 5,325 Kcal/kg; The Kilisuci Project is geographically favourably and is located near existing road, rail and port infrastructure. (alex)