KAL Energy to explore 2nd Kalimantan coal concession

NASDAQ OTTCB-listed junior mining firm KAL Energy, Inc. announced on Tuesday its decision to commence the exploration of its second concession of its thermal coal project in East Kalimantan.

"Based on the excellent results we achieved on our first concession (Block 24), the board has decided to commence the exploration of Block 16 -- our second concession. Results from our fieldwork to date, which included the analysis of grab samples, indicate the block to host high quality thermal coal, " Cameron Reynolds, KAL Energy CEO, said.

"The JORC Compliant Inferred Resource of over 200 Million tonnes released last week only covers the primary seam from Block 24. As such, defining the resource of Block 16 is key to establishing the total breadth of the KAL assets. Our aim for the Block 16 Phase 1 Program is to build on the already completed field geological work conducted in 2006," added Executive Director Andrew Caminschi.

KAL Energy has rights to two coal concessions near the Mahakam River in North Eastern Kalimantan. One of the concessions has a JORC Compliant Inferred Resource of 204 Million tonnes of thermal coal. (alex)