Exalt eyes concessions in Kalimantan, Sumatra
Tuesday, April 2 2013 - 07:20 AM WIB
ASX-listed Exalt Resources Ltd recently stated it is progressing with a dual strategy of exploration of existing concessions and the potential acquisition of near-term production assets in Indonesia, the company said in a statement to the exchange on Tuesday.
Initial mapping studies on PT Karindangan and PT Mitra Maju Bangun Persada have been somewhat delayed by wet weather. Once finalised, the results of the mapping study will determine the extent of an exploration drilling program.
Verification sampling is due to commence at the PT Bakti Initi Guna concession within two weeks, with an anticipated drilling program to follow the concessions? re-admission onto the Clean and Clear list, expected when the list is next published.
The Company is targeting a small number of highly prospective concessions and is finalizing conditional agreements with the current owners.
Preliminary legal, geological and commercial due diligence on to concessions has been completed with promising results. A non-binding, Memorandum of Understanding (including an exclusivity period for the benefit of Exalt) has been signed on each of three concessions, located in the Indonesian Provinces of West Sumatra and South Kalimantan.
Advanced negotiations in relation to conditional Sale and Purchase agreements are also in progress with the owners of highly prospective concessions in Central Kalimantan and West Sumatra.
The Company believes it maybe possible to commence operations at certain assets within six months of transaction completion
In parallel with its exploration activities, the Company is pursuing near-term coal production assets situated in a small number of selected ?hub? locations.
Typical projects being assessed contain potential of 500,000 tonnes to in excess of 1 million tones production per annum and when combined with other potential acquisitions in the same hub may represent a significant production capability in that region.
Exalt is planning to develop production ?hubs? in East Kalimantan, South Kalimantan, West Sumatra and Central Kalimantan
The Company is assessing up to four near term production projects (with typical funding requirements of US$1 to US$4 million with additional funds required for mine development and working capital) which would form the foundation assets for the hub strategy if completed.
Editing by Er Audy Zandri