Haddington to enter pre-feasibility stage at S. Kalimantan coal project

Australian mining firm Haddington Resources said on Tuesday that it expected to enter pre-feasibility stage at its Tabalong coal project in South Kalimantan by the end of June, this year.

"The pre-feasibility stage will depend on completing the current drilling objectives, receiving initial analytical results, updating the geological model, calculating resources and initial haul road planning," the company said in quarterly report statement.

The exploration activities at the coal mining project continued as planned during the quarter with a focus on gathering sufficient data to commence resource determination, it said.

Meanwhile, evaluation of infrastructure requirements, including road routes, is being carried out to identify the extent of road upgrades and creek crossings required for transport of coal to the Barito River .

Exploration in the next quarter will be focused on completing exploration drilling to the northern boundary of the project, proving the extent of the thicker coal intervals and continuing coring the thicker coal intersections to obtain samples for analysis, it added.

The project is covered by two KP's (Mining Permits) which are held by PT Suryaraya Permata Khatulistiwa (SPK) and PT Suryaraya Cahaya Cemerlang (SCC) and cover 1,993 and 4,315 hectares respectively.

Haddington, through its wholly owned subsidiary PT Minvest Mitra Pembangunan (MMP) has an option to purchase both PT SCC and PT SPK in their entirety. The option expires on May 3, 2009. (denny)