Killara updates Indonesia coal projects
Thursday, October 24 2013 - 07:30 AM WIB
PT BORNEO EMAS HITAM
The Borneo Emas Hitam concession is divided into 3 (three) blocks which are the eastern block, the central block and the western block. Killara has identified a total of 56 outcrops within the concession area. Killara?s priority for this concession is on the eastern block based on outcrop data.
Drilling contractor PT Reka Indo Internusa completed the exploration program on Eastern Block at Killara?s. PT Borneo Emas Hitam (BEH) coal concession in East Kalimantan with 48 coal samples from drilling sent for independent lab testing. As at 20 September 2013, Killara has completed drilling of 114 holes (4,242.86 m).
The program has focused on the eastern block of the concession, with two short term production targets? (Pit 11 and Pit 4) which have been subject to land compensation previously. Drilling at Pit 11 and Pit 4, along with geological modeling is now complete.
There are 3 seams discovered in Pit 4. 13 coal samples from drilling at Pit 4 have been sent for independent lab testing at Geoservices Balikpapan, returning the following results: seam 4E has an average calorific value (ar) of 6498, seam SE has an average calorific value (ar) of 7110 and seam 6E has an average calorific value (ar) of 7306. Further information is provided as an appendix.
There are 2 seams discovered in Pit 11, which are seam 11EA with average calorific value (ar) of 7031 and seam 4E with average calorific value (ar) of 6867. 13 coal samples from drilling at pit ii have been sent for independent lab testing to Geoservices Balikpapan.
There are 4 seams discovered in the undeveloped area, which are seam C with average Calorific Value (ar) of 6697, seam BA with average Calorific Value (ar) of 4496, seam BU with average Calorific Value (ar) of 6555 and seam BL with average Calorific Value (ar) of 6511. 22 coal samples from drilling at the undeveloped area have been sent for independent lab testing to Geoservices Balikpapan.
Killara is now in the process of detailed mine planning and economic assessment of these identified targets.
41 coal samples from outcrops of eastern block (28 outcrops), central block (8 outcrops) and western block (12 outcrops) have been sent for independent lab testing, confirming an average coal quality of 6921 calorific value (ar) in the eastern block, 6636 calorific value (ar) in the central block and 6499 calorific value (ar) in the western block. Further information is provided as an appendix.
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.
Coal Quality
48 samples from drilling have been submitted for analysis at the PT. Geoservices balikpapan laboratory. An additional 41 outcrops were also sampled and submitted to the laboratory during recent exploration. Coal quality results from outcrops and drilling confirmed a direct shipping thermal coal product with high cv and low ash, but with varying 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 54 degrees on the eastern and western concession borders in Pulaubalang formation.
The priority areas currently being drilled are in Pulaubalang formation on the eastern limb of the syncline where average dips are 37 degrees.
Ongoing Exploration
The East Exploration area is the focus of ongoing exploration at BEH. A number of additional drill targets have seen 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, laboratory analysis and associated reports.
Killara identified coal from three geological formations at PT, the Montalat, Beral and Warukin. The Montalat and Warukin formations are subject to coal mining in an adjoining concession and throughout
Central Kalimantan. Field mapping identified 22 coal outcrops with true thickness averaging 0.61 and ranging up to 1.45m.
13 of the 22 coal outcrops were sampled and submitted to the PT Geoservices Balikpapan laboratory for analysis. Results confirmed a direct shipping thermal coal with low cv, very low and low sulphur.
Geology
The project occurs in the large tertiary Barito basin of Kalimantan and covers to 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 result of which will determine the nature of ongoing work at the concession. (end of excerpt)