Cokal updates C. Kalimantan coal project
Wednesday, May 1 2013 - 03:52 AM WIB
BBM Project
BBM covers an area of 19,920 hectares (ha), immediately adjacent to BHP Billiton?s Juloi tenement, straddling the Barito River and has numerous outcrops of bright coal. The Eastern Block of BBM contains an Exploration Target1 of 200 to 350 Million tonnes (Mt) and ongoing drilling samples indicate the eventual conversion to premium coking coal with Crucible Swell Numbers (CSN) values generally 9 or more. This exploration result is in addition to the 77Mt total (7Mt Indicated and 70Mt Inferred) Resources.
In October 2012, Cokal Limited (Cokal) received Ministry approval for an exploration forestry permit Pinjam Pakai (IPPKH), covering its premier BBM metallurgical Coal Project. The IPPKH is critical for the use of larger capacity exploration equipment which will allow for high impact drilling activity of its Indonesian coal targets.
Cokal?s 60% owned BBM project has foreign ownership approval from the Badan Koordinasi Penanaman Modal (BKPM) the Indonesian equivalent of the Foreign Investment Review Board. The BBM exploration licence has been listed on the Central Governments ?Clean and Clear List?, and is now also approved by the Forestry Department for Cokal to conduct high impact exploration activities.
Immediately following the approval, Cokal mobilised three large drill rigs into BBM and commenced drilling boreholes to depths reaching 400 metres (m). These boreholes will allow Cokal?s geologists to develop a clearer understanding of the full stratigraphic sequence of the 13 coal seams identified in the Haloq Formation.
Unfortunately, the rainy season arrived early and the BBM project area has experienced extraordinary flooding such that the dozers working on pushing the drill access roads for the big drill rigs have been hampered. Consequently, the large drill rigs have been delayed in completing the stratigraphic boreholes to date.
The five smaller man-portable drill rigs have continued to delineate the shallow ?J? Seam across BBM. Cores are undergoing analyses and confirm the ?J? Seam to be a premium coking coal with CSN 9 consistently. To date, Cokal has defined ?J? Seam outcropping over 10km in length. The ?J? Seam has been found to thicken to 2m in places.
Further detail mapping of the far-east portion of BBM?s Eastern Block has uncovered more encouraging information of the group of seams which appear to be gathered closely to one another. These seams, K, L and M Seams, vary in thickness from 0.2 to 1.4m, and analyses of the outcrop samples, although weathered, indicate the coal to have coking properties. In general the weathered samples indicate a low volatile coking coal with up to 17.5% Volatile Matter and swells (CSN) from 1 to 9. Drill rigs are scheduled to test the seams with fresh core being subject to testing to determine the coking coal properties. The lower geomorphology in the far-east is interpreted to provide lower strip ratio coking coal.
The K, L and M seams are part of the Exploration Target1of 200Mt to 350Mt down to a depth of 200m, announced on June 27, 2012.
BBP Project
The Forestry Permit for Exploration is expected to be granted for Borneo Bara Prima (BBP) project shortly. Man-portable drilling in the south portion of BBP is coming to an end with the results confirming the coal quality of the multiple outcrops to be suitable for the PCI and Anthracite markets. When granted the exploration forestry permit will enable the utilization of high impact drilling to determine the full stratigraphic sequence and the number of discrete seams that are present. The area covered by the drilling to date is less than one quarter of the BBP tenement.
Mapping of the northern portion of BBP has commenced and outcrop samples will be tested in the near future.
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 5,000ha and the AAM project comprises 10,000ha. 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 of the Silangkop Nusa Raya (SNR) Project area 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)