Cokal announces JORC resources for Bumi Barito Mineral

By Ruli Setiawan

ASX-listed global metallurgical coal group Cokal Ltd announced on Tuesday the release of a Coal Resource statement for the Eastern portion of the Bumi Barito Mineral (BBM) coal project, comprising of 10.5 Million tons (Mt) Measured, 13.5Mt Indicated and 237Mt Inferred Coal Resources in accordance with the JORC Code (2012).

The Resource Report, which was compiled by Cokal?s Competent Person, was independently review by SRK Consulting which confirmed the report to be compliant with the 2012 version of the JORC Code.

The main exploration activities conducted to date include:
? Surface mapping of coal and non-coal outcrops
? Shallow drilling using HQ coring for sampling
? Deep drilling (average 400 metres (m) depth) for determining the continuity of the coal seams across the BBM East Block.

Based on the data collected from these activities and a minimum seam thickness cut-off of 0.6m, a total Coal Resource of 261Mt of B, C, D and J Seams have been estimated in accordance with the JORC Code. Of that, 10.5Mt is deemed Measured Resources and 13.5Mt is Indicated Resources. Both Measured and Indicated Resources have been estimated for the J seam only which has been confirmed as a coking coal from analyses conducted in an Australian laboratory. A portion of the B, C and D Seams produces a premium PCI product such the overall proportion of PCI:Coking coal is 10:90 for the total Coal Resource.

The additional Coal Resources have been determined primarily from drilling results in the KLM area including deep stratigraphic boreholes (up to 400m deep) which have confirmed 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 300m and then comes back up to the surface in the KLM area in the east.

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 B, C, D and J Seam Resources using underground methods such as thin-seam longwall mining.

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.

The BBM project is located northwest from the township of Puruk Cahu, the capital city of Murung Raya Regency, Central Kalimantan.

Exploration License IUP 188.45/232/2012 was awarded by the Head of Murung Raya Regency Government of Central Kalimantan Province (Bupati) to PT BBM (Indonesia) on 18 July 2012 for a period of 2 years, covering an area of 19,400 hectares (ha) in the Seribu Riam and Sumber Barito District, Central Kalimantan Province.

Cokal Executive Director, Pat Hanna, said ?this Coal Resource upgrade is in line with the Exploration Target previously announced. Further in-fill drilling will define additional Coal Resources and increase the proportion of Measured and Indicated Resources.?

Chairman and CEO Peter Lynch said ?Cokal is close to completing a definitive feasibility study using the latest Coal Resources. The economics of the initial five years of production are very favourable and the DFS clearly demonstrates a generous cashflow can be generated in this 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?.

BBM Coal Resources by Category and Seam

Seam Name	Seam Thickness (m)	Measured Resources (Mt	Indicated Resources (Mt)	Inferred Resources (Mt	Total Resources (Mt)
J	1.34	10.5	13.5	31	55
D	1.37			75	75
C	1.14			70	70
B	0.97			61	61
Total		10.5	13.5	237	261

 

BBM Coal Resources by Category and Depth of Cover

Depth Range (m)	Measured Resources (Mt)	Indicated Resources (Mt	Inferred Resources (Mt)	Total Resources (Mt)
0-50	5.0	2.0	6	13.0
0-100	9.3	8.0	18	35.3
0-150	10.5	13.0	39	62.5
0-200	10.5	13.5	60	84.0
0-250	10.5	13.5	86	110.0
0-300	10.5	13.5	120	144.0
>300	10.5	13.5	237	261.0

 

In-situ Average Coking Coal Quality, ?J? Seam (% adb)

Product	Yield	Inherent Moisture	Ash	Volatile Matter	Fixed Carbon	Total Sulphur	Calorific Value Kcal/kg	CSN	Relative Density	Relative Density
Raw Coal	100	0.9	6.5 ? 23.2	15.6 ? 18.9	58.4 ? 74.8	0.31 ? 0.55	6500 ? 8100	9	1.39	0.009
Washed Coal	81	0.7	5.3	18.1	76.0	0.42	8,300	9	1.32	N/A

 

In-situ Average PCI Quality, ?B, C and D? Seams (%adb)

Inherent Moisture	Ash	Volatile Matter	Fixed Carbon	Total Sulphur	Calorific Value Kcal/kg	CSN	Relative Density	Relative Density
1.0	6.5	9.5	83.0	0.42	8,100	1.5	1.37	0.002

Editing by Johannes Simbolon