Cokal updates JORC resource estimate for BBM project
Thursday, January 29 2015 - 02:17 AM WIB
ASX-listed global metallurgical coal group Cokal Ltd announced Thursday the release of an updated coal resource statement for the Eastern portion of the Bumi Barito Mineral (BBM) coal project, in Central Kalimantan.
The resource report, which was compiled by Cokal?s competent person, is compliant with the 2012 version of the JORC Code, the company said in a statement.
Based on the data collected from exploration activities and a minimum seam thickness cut-off of 0.3m, a total coal resource of 266.6Mt of B, C, D and J Seams have been estimated in accordance with the JORC Code.
This comprises of 19.5 million tons (Mt) of measured (85 percent increase on previous estimate), 23.1 Mt indicated (70 percent increase), and 224 Mt inferred coal resources in accordance with the JORC Code (2012).
The upgrade of resource to higher JORC categories is primarily due to the additional outcrop mapping and subsequent channel sampling of the coal for Seams B, C and D in the areas covering Pits 1 and 2 in BBM East. These channel samples gave a reliable representative sample of each coal seam.
Although the coking coal properties of the samples had been affected by oxidation due to near surface exposure, the chemical properties of the coal, such as Ash, Sulphur and Volatile Matter have minimal affect from oxidation.
These analytical results can be used to determine the potential coal type. For example, if the Volatile Matter is greater than 14 percent, the coal is regarded as a coking coal rather than a PCI coal. PCI coals in BBM have been found to have volatile matter ranges from 10 percent to 14 percent. Above 14 percent volatile matter, CSN values are found to be above 5 until the volatile matter reaches above 17 percent when the CSN is consistently 9.
The BBM Coal Resource includes Resources which have the potential to be economically extracted using both open pit and underground mining methods.
The coal seams are generally thicker than 1m and the roof predominantly consists of very hard sandstone (up to 95Megapascals (MPa)) while the immediate 1m to 2m of roof consists generally of a competent siltstone. This combination is ideal for extraction of the deeper Coal 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 percent of the total area of the BBM Production IUP tenement license.
The coal resource has been confirmed as a metallurgical coal from analyses conducted in an Australian laboratory, and is comprised of 90 percent coking coal and 10 percent PCI/semi-soft coking coal.
Table 1: 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 | 1.33 | 10.50 | 13.5 | 31 | 55.00 |
| D | 1.34 | 3.53 | 3.5 | 70 | 77.03 |
| C | 1.23 | 2.62 | 3.1 | 66 | 71.72 |
| B | 1.10 | 2.85 | 3.0 | 57 | 62.85 |
| Total | ? | 19.50 | 23.1 | 224 | 266.6 |
Table 2: 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 | 10.33 | 3.0 | 1 | 14.33 |
| 0‐100 | 17.17 | 11.3 | 9 | 37.47 |
| 0‐150 | 19.31 | 19.7 | 25 | 64.01 |
| 0‐200 | 19.50 | 22.5 | 42 | 84.00 |
| 0‐250 | 19.50 | 23.0 | 67 | 109.52 |
| 0‐300 | 19.50 | 23.1 | 100 | 142.60 |
| >300m | 19.50 | 23.1 | 224 | 266.60 |
Table 1-3: Raw Coal Quality of B, C and D Seams
| Seam | Inherent Moisture | Ash | Volatile Matter | Fixed Carbon | Total Sulphur | Calorific Value | CSN | Relative Density | Phosphorus |
| D | 1.7 | 3.5 | 14.3 | 80.7 | 0.38 | 8,213 | 4.0 | 1.33 | 0.002 |
| C | 1.8 | 5.3 | 14.5 | 78.7 | 0.39 | 8,025 | 5.0 | 1.33 | 0.001 |
| B | 1.7 | 4.7 | 14.3 | 79.5 | 0.40 | 8,084 | 2.0 | 1.38 | 0.003 |
Table 1-4: In-situ Average Coal Quality by Seam and Product Type (% adb)
| Seam | Product | Inherent Moisture % | Ash % | Volatile Matter % | Fixed Carbon % | Total Sulphur % | Calorific Value (Kcal/kg) | Crucible Swell Number | Relative Density (g/cc) | Phosphorus % |
| D | PCI | 1.7 | 3.5 | 10.3 | 83.7 | 0.43 | 8,204 | 1.5 | 1.36 | 0.002 |
| D | Coking | 1.7 | 3.5 | 14.4 | 79.7 | 0.39 | 8,287 | 9.0 | 1.33 | 0.002 |
| C | PCI | 1.8 | 5.3 | 9.3 | 84.3 | 0.41 | 8,191 | 1.0 | 1.36 | 0.001 |
| C | Coking | 1.8 | 5.3 | 14.5 | 79.5 | 0.24 | 8,265 | 8.5 | 1.33 | 0.001 |
| B | PCI?? | 1.7 | 4.7 | 9.5 | 75.6 | 0.41 | 7,676 | 1.5 | 1.40 | 0.004 |
| B | Coking??? | 1.7 | 4.7 | 13.8 | 73.1 | 0.23 | 7,591 | 7.5 | 1.38 | 0.002 |
Table 1-5: Coal Quality of J Seam
| Product | Yield | Inherent Moisture | Ash | Volatile Matter | Fixed Carbon | Total Sulphur | Calorific Value Kcal/kg | CSN | Relative Density | Phosphorus |
| 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 |
Editing by Reiner Simanjuntak