Cokal updates C. Kalimantan coal project
Wednesday, October 31 2012 - 04:02 AM WIB
BBM Project
BBM covers an area of 19,920 hectares (?ha?), immediately adjacent to BHPBilliton?s Juloi tenement, straddling the Barito River and has numerous outcrops of bright coal. The Eastern Block of BBM contains an Exploration Target1 of 200Mt to 350Mt and ongoing drilling samples indicate the eventual conversion to premium coking Coal Resources with Crucible Swell Numbers (?CSN?) values generally 9 or more.
In August, Cokal ungraded its total Coal Resources to 77Mt for the BBM Project with the inclusion of the Resource estimation for the J Seam. The 17Mt Resource estimate for the J Seam included 7Mt of Indicated Resources and a further 10Mt of Inferred Resources to the 60Mt of Inferred Resources for the B, C and Seams previously reported.
The ?J? Seam is one of thirteen seams which have been mapped on surface outcrops at the BBM project. The discovery of the ?J? Seam is of particular significance since all samples returned CSN of 9 or greater. A portion of the ?J? Seam Resource exhibits a very low in-situ ash content (around 5%) which means the coal is likely to be mined and direct shipped without the need for processing through a coal washery. This will save considerable capital and operating cost.
The Ash content of the J Seam increased towards the East from the initial discovery point, due to the development of a thin stone parting within the coal seam. The Ash content gradually rose from 5% to about 12%. When the Ash content exceeded 9%, the coal was washed at Float 1.60gm/cc and the results consistently returned a greater than 85% yield (recovery) with ash levels around 5%.
The focus of exploration efforts at BBM continues to be on the ?J? Seam to determine the full extent of the in-situ low ash. The drilling results also continue to convert the previously estimated Exploration Target 1 into Coal Resources in accordance with the JORC Code.
BBP Project
Continuing exploration drilling has confirmed the coal quality of the outcropping coal seams to be suitable for the PCI and Anthracite markets. The area covered by the drilling to date is less than one quarter of the Borneo Bara Prima (?BBP?) tenement and further coal seam outcrops are being drilled and tested to determine the presence of coking coal.
As well, mapping of the northern portion of BBP is planned it be conducted in the next quarter to help plan a drilling program which is expected to uncover additional coking coal results.
AAM and AAK Projects
Cokal has a 75% share of Anugerah Alam Katingan (?AAK?) and Anugerah Alam Manuhing (?AAM?) projects also located in Central Province, Kalimantan, Indonesia. The AAK project area comprises 5,000 ha and the AAM project comprises 10,000 ha. Drilling is planned to commence once the Forestry permit for exploration activity is issued.
SNR Project
Cokal?s geological team continues to conduct preliminary surface mapping to help plan an exploration drilling program. Drilling is planned to commence once the Forestry permit for exploration activity is issued.
In addition to the above projects, Cokal?s geological team remains active in evaluating other opportunities in Kalimantan.(end of excerpt)