KAL Energy commences $2m work program on E. Kalimantan coal project

LONDON-based junior miner KAL Energy, Inc. announced Thursday that a US$2,000,000 work program has been initiated on its Thermal Coal Project in East Kalimantan.

The Project has been geologically estimated to contain an available resource of 192,000,000 tons coal and is situated near the Mahakam River in North Eastern Kalimantan. Previous testing has indicated that this coal has a low ash and sulphur content, which is preferable over some other coals due to its usability for environmentally friendly electricity generation, said the company.

According to the company, the Phase 1 Drill Program includes extensive drilling, trenching, sampling and mapping of known geological structures, and exploration of unknown structures with two key objectives To further define the known seams to JORC Compliant inferred resource status, and to explore other prospective areas of our concessions for additional resources.

In addition, KAL Energy has begun a general infrastructure upgrade on the block to enhance access and support the exploration program. This includes access road upgrades, and the construction of a camp to support the work force.

KAL Energy's wholly owned subsidiary Thatcher Mining Pte. has the rights to two coal concessions situated near the Mahakam River in North Eastern Kalimantan.(alex)