KAL Energy updates E. Kalimantan coal exploration

London-based mining firm KAL Energy, Inc. announced on Wednesday the commencement of exploratory drilling on its East Kalimantan coal concessions. The drilling is part of the US$ 2 million work program.

"With five drill rigs on the property, and over 1000m of exploratory drilling completed to date, we are delighted with the excellent progress demonstrated by our team," stated Cameron Reynolds, KAL Energy's CEO.

The work program includes over 5700m of deep drilling, with 57 holes planned at depths ranging from 50m to over 200m. A further 46 shallow holes, over 10m in depth, have already been drilled to confirm and better define known surface coal out cropping.

Reynolds expects that exploration team will begin receiving core sample analysis results from third party labs by early April.

Previous samples have demonstrated that the quality of KAL Energy's thermal coal deposits contain very low sulphur and ash content -- suitable for electricity generation, said the company.

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.

Consulting Geologist, Jonathan O'Dell, has estimated that blocks 16 & 24 within the concessions could contain over 192 million tons of thermal coal.(alex)