KAL Energy exploration program surpasses 3000m of drilling milestone

London-based junior mining firm KAL Energy, Inc announced Wednesday that over 3000m of drilling has been completed of Phase 1 Exploration program on its Thermal Coal Project in East Kalimantan.

This program includes extensive drilling, trenching, sampling and mapping of known geological structures, and exploration for unknown structures.

Over the past week KAL's exploration team has been able to drill over 450m -- a new weekly high -- pushing the total meters drilled to date past 3000m, the company said, adding that with such speed Phase 1 exploration would be completed within the first half of 2007.

The drill program currently taking place on KAL Energy's concession is being conducted to determine the amount and quality of coal available. 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's wholly owned subsidiary Thatcher Mining Pte. Ltd. has the rights to two coal concessions situated near the Mahakam River in North Eastern Kalimantan, Indonesia. This river is a main transportation system for transporting coal to nearby markets. Consulting Geologist, Jonathan O'Dell, has estimated that blocks 16 & 24 could contain over 192,000,000 tons of thermal coal.(alex)