Cokal announces additional JORC resources for BBM project
Friday, October 25 2013 - 12:57 AM WIB
ASX-listed global metallurgical coal group Cokal Ltd announced Friday an upgrade of the coal resources for the eastern portion of the Bumi Barito Mineral (BBM) coal project, in Central Kalimantan, comprising of 10.5Mt measured, 13.5Mt indicated and 240Mt inferred coal resources in accordance with the JORC Code (2012).
The company said in a statement that all of the additional Coal Resources have been determined as coking coal from analytical results. Deep stratigraphic boreholes (up to 400 meters deep) have confirmed the KLM area to consist of the continuation of the ?J? Seam to the east of the ?J? Seam outcrop area. This is due to a synclinal/anticlinal structural feature whereby the ?J? Seam extends from the outcrops down to depths of around 300 meters and then comes back up to the surface in the KLM area in the east.
An economic analysis of the Coal Resource is underway to determine the ratio of open pit to underground coal extraction.
The roof of the ?J? Seam predominantly consists of a very hard sandstone (up to 95MPa) while the immediate 1m to 2m of roof material is shaley in nature. This combination is ideal for extraction of the deeper J Seam Resources using underground methods such as thin-seam longwall mining.
Cokal Executive Director, Pat Hanna said: ?this Coal Resource upgrade is in line with the exploration target previously announced. Further drilling will define additional coal resources and increase the proportion of measured and indicated resources.?
The coal resources for BBM have been estimated in accordance with the 2012 version of the JORC Code. The area covered by the current coal resource estimate is 30% of the total area of the BBM Production IUP tenement license.
Chairman and CEO Peter Lynch said: ?Cokal is close to completing a definitive feasibility study using the latest Coal Resources. The economic modelling of the DFS results is expected demonstrates a good cashflow can be generated in early stage of production. I am particularly excited of the long term potential of BBM which will include extraction of a large portion of the Coal Resources using efficient underground mining methods?.
Editing by Reiner Simanjuntak