KAL Energy concludes drilling program at Kalimantan coal concession

NASDAQ OTCBB-listed junior mining firm KAL Energy, Inc. announced on Wednesday it had completed the drilling of its previously announced $2 million Phase 1 Exploration program on its Thermal Coal Project in East Kalimantan.

According to the company, the program included over 5600 meters of extensive drilling, including over 230 holes, as well as trenching, sampling and mapping of known geological structures, and exploration for unknown structures.

"The completion of the field work of Phase 1 Exploration Program represents a major achievement for KAL. We flagged this milestone to the market at start of the year -- and we have delivered on time," stated Cameron Reynolds, KAL Energy's CEO. "The team will now focus on processing and presenting the findings of the program in a The Australasian Joint Ore Reserves Committee (JORC) Compliant Resource Statement, which we expect to deliver mid June, as previously committed," Reynolds added.

The program on KAL Energy's concession in Indonesia was being conducted to determine the amount and quality of coal available, and present this in a JORC Code Compliant Resource Report. Previously disclosed Geological estimates have indicated that in excess of 192 million tons of coal with low sulfur and ash content are located at shallow depths on the concessions.

KAL Energy, Inc. has rights to two coal concessions situated near the Mahakam River in North Eastern Kalimantan. (alex)