Haddington updates S. Kalimantan coal project
Friday, February 1 2008 - 06:31 AM WIB
The Tabalong Coal Project exploration activities continued as planned during the quarter. Field work was directed in gathering sufficient outcrop and field mapping data to conduct a stratigraphic drill program for resource determination.
The project is covered by two Kuasa Pertambangan (KP) for Coal in Tabalong District of
South Kalimantan. The KP?s (Mining Permits) are held by PT Suryaraya Permata Khatulistiwa (PT SPK) and PT Suryaraya Cahaya Cemerlang (PT 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.
Information gathered to date at Tabalong indicates a high calorific, low ash and medium to high sulphur coal type. Initial geological interpretation indicates that 2 separate coal sequences extend along the entire strike length of the KP areas. Each of these sequences contains several separate groups of seams.
Field Mapping and Sampling
Field mapping continued during the quarter with 104 outcrops located of which 19 had previously identified. To date 13 samples have been collected and analysed by PT Geoservices in Balikpapan.
The analytical results confirmed earlier indications of a high calorific, low ash and medium to high sulphur coal type. Assay results were requested for Crucible Swelling Number (CSN) to ascertain whether the coal has any coking properties for metallurgical use.
Exploration Drilling
Drilling commenced at Tabalong on 19th November 2007. The drill program consists of a series of open holes drilled in pre-planned transects, perpendicular to strike (Line 1 in the south through to Line 29 in the north). Drilling was carried out by Haddington subsidiary PT Asiadrill Bara Utama and geophysical logging by PT Velseis Indonesia, also a Haddington subsidiary. Drill supervision was provided by the company?s geologists based in Jakarta.
Drilling began in the southern KP (PT SCC) and moved north to the northern KP (PT SPK) and was directed towards identifying sufficient coal resources to warrant further evaluation for development.
To date 71 open (chip) holes have been completed and total 3,383 meters. Holes were drilled using 3 man portable drills to reduce environmental impact and allow easier site access.
Maximum depth drilled to date is 70 meters. All holes have been geophysically logged with Gamma, Density and Caliper.
Approximately half of the prospect has been drilled up to the Line 14 transect. The drill transect lines are spaced at 500 meter centres and are perpendicular to the interpreted coal strike. Further focus will be directed to the northern KP (PT SPK) in the current quarter, as the coal seams appear to be thicker in this region.
Coal Seams
Drilling has intersected 135 separate coal seam intervals. These intervals consist of the following:
? 2 coal seams > 1.0 meter thick (maximum is 2.0 meters and contains 0.12 meter parting
? 44 coal seams between 0.5 to 1.0 meter thick
? 89 coal seams < 0.5 meter thick
All of the above coal thicknesses are true thickness and adjusted at an average 30 degrees coal dip.
The coal seams intersected to date are dipping in a westerly direction. The trend has been for the seams to gradually increase in thickness from the south to the north.
The northern and southern seam groups appear to be separated by a fault structure. The fault(s) offset the seam groups but appears to have little influence on the general stratigraphic trend.
Future Development
Current quarter activities and objectives for the Tabalong Project are:
? Continue drilling with focus on locating thicker coal intervals to the north.
? Core a number of coal intervals to allow samples for analysis.
? Assess geophysical data in order to confirm seam correlations.
? Conduct preliminary resource estimation from drilling results.
? Carry out preliminary transportation and infrastructure investigations. (end of edited excerpt)