Coal FE updates Indonesian ops
Monday, August 10 2009 - 01:33 AM WIB
ABADI PROJECT, Kutai Kartanegara, East Kalimantan
Activities during the June Quarter
Following the Joint Mining Management Agreement (JMMA) entered into as announced on the 14th April 2009, the Company subsidiary, Indocoal and Toba Jaya has negotiated a compensation scheme and surface acquisition scheme with the local community which will result in the villagers in the concession area be relocated to an area approximately 250 metres away from the concession area. This process will also see the villagers have their existing crops and plants be compensated by the end of September 2009.
Activities subsequent to the June Quarter
The company, together with Toba Jaya, has also made arrangements for heavy equipment to be brought to the Abadi site in August 2009 to commence land clearing activities in preparation for coal production.
The company is also finalizing a general placement exercise that will see more capital be injected into the company in preparation for Abadi Project coal production.
PALAPA PROJECT, Enrekang, South Sulawesi
The Palapa Coal project is a 100 Ha project located upon the western margin of the island of Sulawesi. The regional geology is strongly reminiscent of Kalimantan with moderate coal production coming from the south western corner of the island.
Coal FE has not been able to proceed with work on the 100 Ha Palapa Project during the period. This is due to outstanding obligations under the license that are to be fulfilled by the owners of CV Palapa. Coal FE has negotiated with the owners to allow Coal FE to explore another concession that has been granted to the owners whilst the owners settle its outstanding obligations stated under the license for the Palapa project. The new concession area is known as Palapa 2 project.
Palapa 2 project is a 2,946 Ha concession area located next to the Palapa project and has been offered to Coal FE at no cost to the company to carry out exploration activity. An exploration license has been issued for the concession area which expires on 1 November 2008 and is currently being extended for a further 5 years.
The Mapping Exercise covering the entire 2,946 Ha concession was completed in March 2008. 200 Ha of the concession is now being proposed by the local geologist for further drilling. An outcrop sample was taken from the proposed 200Ha area with the following analysis;
| Sample Analysis on Outcrop at Palapa | ||
| Total Moisture (ar) | % | 14.7 |
| Inherent Moisture (adb) | % | 13.8 |
| Ash Content (adb) | % | 2.2 |
| Volatile Matter (adb) | % | 24.4 |
| Fixed Carbon (adb) | % | 60.6 |
| Total Sulphur (adb) | ? | 0.48 |
| Gross Calorific Value | Kcal/kg | 6,208 |
12 coal outcrops have so far been found and the outcrops indicate a strong presence of coal. The coal seam found in the area has thickness ranging from 0.3 metre to 1 metre with the inclination 20?-52? with strike in the North ? North West direction.
Activities during the June Quarter
Due to the present lack of funds the drilling activity will continue once more funds are raised. The exploration license will also be extended provided payments are made for its extension.
ANDALAS PROJECTS, Pasaman, Central and West Sumatra
The Company (through its subsidiary, PT Techventure Indocoal) has a 70% interest in four (4) Indonesian companies, which currently holds exploration licenses for iron ore concessions in Central and West Sumatra.
The general survey done on these concessions shows iron ore presence and is indicated by the magnetite content of rock boulders along slope hill, foot hill and creeks. Boulders comprise of volcanic, sedimentary metasediment and lateritic soil in some places. The primary iron ore is buried or covered by local subsidence. Assays from local survey reports indicate FE values of economic interest.
The general survey involved the evaluation of the concessions for bedded iron deposit (BID). The Company is planning further geological mapping, rock sampling and trenching as well as an aeromagnetic and radiometric survey over the tenements, purchasing satellite imagery, and rock chip sampling.
Activities during the June Quarter
Preliminary survey work on the Andalas projects has been kept in abeyance until the raising of further funds to undertake a complete exploration activity on the Andalas projects. (end of edited excerpt)