KAL Energy reports new coal seam discovery

London-based junior mining firm KAL Energy, Inc. confirmed on Wednesday that a second coal seam has been discovered on its East Kalimantan Coal Concession.

According to the company, the drilling results of the previously announced US$2,000,000 Phase 1 exploration program indicate that the new seam is approximately 1.5m thick with extent and quality to be determined by further drilling.

"The drill program is starting to better define the coal resource beyond the initially identified 4.5 meter seam," stated Cameron Reynolds, KAL Energy?s CEO. The work program, currently in progress, includes over 5,700m of deep drilling, with 57 holes planned at depths ranging from 50m to over 200m.

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.(alex)