Cokal updates JORC resources statement for BBM project
Friday, April 29 2016 - 04:26 AM WIB
ASX-listed global metallurgical coal group Cokal Ltd (CKA) announced Friday the release of an updated coal resource statement for the eastern portion of the Bumi Barito Mineral (BBM) coal project, in Central Kalimantan.
The company said in a statement that since the January 2015 Coal Resource Report, no further exploration activity was conducted in the field. The total resource estimate (266.6Mt) remains unchanged comprising of 19.5 million tonnes (Mt) measured, 23.1 Mt indicated and 224 Mt inferred coal resources in accordance with the 2012 JORC Code. 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 coal.
?This updated report demonstrates that after further review of the analytical results for Seams B, C and D outcrop samples, both coking coal and PCI are suitable for direct-to-ship extraction due to very low ash content of the three seams,? Cokal said in the statement, while also providing further details as follows.
Due to the reliable representative sampling from the outcrop channel samples, the B, C and D seams have displayed consistent low ash contents of between 2 percent and 7 percent with the average around 4 percent. This result is in contrast to the higher ash contents recorded in the nearby borehole samples which are now considered to be most likely highly contaminated by the use of drill muds and non-coal material which collapsed in the borehole from above the seams. It is believed that this contamination resulted in the anomalously high ash results for the core samples.
It can be demonstrated that BBM can produce premium quality PCI and coking coals. The PCI product have low ash (generally between 3% and 7%) as well as low volatiles (generally below 10%). The high calorific value (7,500 to 8,200Kcal/Kg), together with the low sulphur (0.4%) and ultra-low phosphorus (0.005%), make this PCI coal a very attractive premium product in the Asian PCI markets, particularly Vietnam.
Similarly, the majority (95%) of the coking coals in BBM have premium qualities including low ash, low sulphur and ultra-low phosphorus. In the case of Seams B, C and D, the raw ash of the coal in situ ranges from 3 percent to 7 percent with a coke swelling index (CSN) of 9. The volatiles are generally low (18% to 20%) which is ideal for most Asian steel producers, particularly in China.
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% of the total area of the BBM Production IUP tenement license.
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 | |
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 |
| C0-250 | 19.50 | 23.0 | 67 | 109.52 |
| 0-300 | 19.50 | 23.1 | 100 | 142.60 |
| >300m | 19.50 | 23.1 | 224 | 266.60 |
Seams B, C and D Coal Quality by Type (% adb)
| Product | Seam | Inherent Moisture % | Ash % | Volatile Matter % | Fixed Carbon % | Total Sulphur % | Calorific Value (Kcal/kg) | Relative Density (g/cc) | Phos- phorus % |
| COKING | ? | 2 ? 4.5 | 2 | 15 ? 19 | 75 ? 80 | 0.36 | 7450 ?8200 | 1.32 | 0.005 |
| PCI | ? | 2 | 3 | 9 | 85 | 0.48 | 8150 | 1.36 | 0.001 |
| COKING | ? | 1.5 ? 6 | 3 | 15 ? 20 | 70 ? 80 | 0.35 | 7050 ? 8050 | 1.33 | 0.004 |
| PCI | ? | 1.5 | 3.5 | 9 | 85 | 0.44 | 8250 | 1.36 | 0.002 |
| COKING | ? | 1.5 ? 5 | 3 | 15 ? 19 | 75 ? 80 | 0.34 | 7350 ? 8150 | 1.33 | 0.004 |
| PCI | ? | 1.5 | 7 | 9 | 80 | 0.47 | 7750 | 1.38 | 0.005 |
Coal Quality of J Seam
| Product | Yield | Inherent Moisture | Ash | Volatile Matter | Fixed Carbon | Total Sulphur | Calorific Value Kcal/kg | CSN | Relative Density | Phos- phorus |
| Raw Coal | 100 | 1.0 | 13.2 | 17.6 | 68.2 | 0.38 | 7,412 | 9 | 1.39 | 0.007 |
| Washed Coal | 81 | 0.7 | 5.3 | 18.1 | 76.0 | 0.42 | 8,300 | 9 | 1.32 | N/A |
Editing by Reiner Simanjuntak