Coziron in E. Kalimantan coal venture

ASX-listed junior exploration firm Coziron Resources Limited announced on Monday it had signed an HoA with PT.Persadatama Agung Lestari (PAL) to form a JV to explore they Landas Paeu thermal coal project, located in West Kutai regency, East Kalimantan.

The project consist of 3,940 ha property, which is held by PAL under general survey permit from West Kutai Regent.

According to the company, a non-JORC compliant historical mineral resource of 52 million tonnes, based on the 1983 USGS Coal Resource Classification System method, has previously been estimated over the tenement.

The area has been explored by PAL and other companies, and had identified a package of 12 seams attributed to the Oligocene Warukin formation over a strike length of 4,200 meters. Analysis of representative coal seam samples show coal quality parameters meet current standard for thermal coal, the company said.

Under the HoA, Coziron will pay PAL US$ 50,000 immediately and will be entitled to acquire 70 percent of the coal project for US$1 million half and cash and half in shares. PAL will also be entitled to a royalty of $1 per tonne of coal sold from the project.

The agreement is subject to a number of conditions including due diligence and site inspection to the satisfaction of Coziron.

Apart from Landas Paeu project, Coziron also has Inderapura coal project in West Sumatra.(denny)