EQiTX to start due diligence drilling at Kalimantan coal concessions

Australian pharmaceutical firm trying to turn into miner EQiTX Limited announced on Friday that due diligence drilling in the South Kalimantan coal permit would start Mach 10, 2008.

Under an MoU with local firm PT.Mega Coal Indo Mine (Mega Coal) the company has right to 51 percent profit from the latter?s coal production should the due diligence drilling would be able to prove up resource of minimum of 50 million tonnes.

According to the company, the mine, which covered 200 hectares of area has previously been developed and mined.

The company said it would also start due diligence drilling in Mega Coal?s other concession which is included in the MoU. The second concession covers area of 500 hectares and is close to the first concession?s location. The terms and condition for the second area is similar to the first one, the company said. ( alex)