Killara updates Indonesia coal projects
Tuesday, September 3 2013 - 03:21 AM WIB
PT Borneo Emas Hitam
Drilling contractor PT Reka Indo Internusa is continuing an expanded exploration program at Killara?s PT Borneo Emas Hitam (BEH) coal concession in East Kalimantan. The now 120 hole (~5,050m) program is ongoing with 93 holes (~3,350m) drilled as of the 26th August, 2013. The program focuses on an additional target (East Expansion) east of the two short term production targets (Pit 11 and Pit 4) which have been subject to land compensation. Drilling at Pit 11 and Pit 4 is complete along with geological modelling. Killara is now in the process of detailed mine planning and economic assessment of these 2 targets.
Current production permitting, land compensation, infrastructure, forestry classification and ongoing works should allow Killara to commence mining these priority areas within an estimated 3 months assuming positive results from mine planning and economic assessment activities.
Results from drilling to date are within expectations of the Killara geological team. 86 of the 93 holes drilled have intersected target seams. Seam Interval thickness results from drilling are summarised below. All intervals are apparent thicknesses and were adjusted to geophysical log results.
Coal Quality
Since the last market update, 32 samples from 9 core holes have been submitted for analysis at the PT Geoservices Balikpapan laboratory. An additional 3 outcrops were also sampled and submitted to the laboratory during recent exploration. Coal quality results from outcrop and drilling confirmed a direct shipping thermal coal product with high CV and low ash but with varying generally high sulphur levels.
Geology
The project covers both limbs of a south plunging syncline from the Kutai basin. Geological formations are the Balikpapan and Pulaubalang, both major sources of coal production in East Kalimantan.
Dips increase away from the syncline?s axis up to a maximum of 56 degrees on the eastern and western concession borders in the Pulaubalang formation.
The priority areas currently being drilled are in the Pulaubalang formation on the eastern limb of the syncline where dips range up to 30 degrees.
Ongoing Exploration
The East Extension area is the focus of ongoing exploration at BEH. A number of additional drill targets have been identified, all with field reconnaissance completed by Killara and some subject to drilling by previous owners of the concession. These targets will be the focus of ongoing exploration, with the intention to drill them to a level of confidence required for production.
PT Pagun Taka
Killara has completed an initial field reconnaissance program at the PT Pagun Taka (PT) concession in Central Kalimantan. The ~ 1 month field program focussed on validating geological information provided by the vendor which included field mapping, drilling, laboratory analysis and associated reports. Killara identified coal from three geological formations at PT, the Montalat, Berai and Warukin. The Montalat and Warukin formations are subject to coal mining in an adjoining concession and throughout Centra l Kalimantan. Field mapping identified 22 coal outcrops with true thicknesses averaging 0.61m and ranging up to 1.45m.
12 of the 22 coal outcrops were sampled and submitted to the PT Geoservices Balikpapan laboratory for analysis. Results confirmed a direct shipping thermal coal product with low CV, very low ash and low sulphur.
Geology
The project occurs in the large tertiary Barito basin of Kalimantan and covers the southern limb of an east-west striking anticline. Dips decrease away from the anticline?s axis and range from 50 degrees in the Berai formation to 4 degrees in the Warukin formation.
Ongoing Exploration
A number of drill targets have been identified by the recent field reconnaissance campaign. Killara is in the process of completing an economic assessment on the concession, the results of which will determine the nature of ongoing work at the concession. (end of excerpt)