Kalimantan Gold completes 4,600m drilling at coal prospect
Thursday, March 26 2009 - 08:12 AM WIB
The company?s option to acquire up to 80% of IBP has been extended to 30 April 2009, it said.
The IBP coal concession is permitted for production and has the potential to be an open-cut coal mine. Work completed on the concession to date indicates a potential deposit of between 100 and 120 million tonnes of between 4,800 and 5,000 kcal/kg coal (ADB) and low ash and low sulfur content, it claimed.
The company?s 58 hole drilling program covered over 4,610 meters and identified two seams, one of between 1 to 6 meters and the other between 8 to 13 meters in thickness with overburden of ratio of around 2:1.
Rahman Connelly, CEO, said, "The program confirms the validity of data provided to us by the owners. It also indicates that the area has substantial unexplored potential, given that the focus of our program was on just 418 ha of the concession's 2,700 ha. The thick seams and low overburden ratio also suggest the potential for relatively low mining costs."
KLG is in active discussions with several power station operators regarding coal off-take and project equity participation, given that the specifications of IBP coal closely matches the requirements of new power stations in India and Indonesia. There is an excellent 20 km road from mine-site to jetty, for which land has recently been acquired by IBP. The distance by barge from jetty site to the Balikpapan Coal Terminal is 304 km. (alex)