Killara updates Indonesia coal projects
Wednesday, January 29 2014 - 03:06 AM WIB
PT BORNEO EMAS HITAM (KRA 80%)
The Borneo Emas Hitam (BEH) concession is divided into 3 (three) blocks which are the Eastern block, the Central block and the Western block. Killara?s priority for this concession is on the Eastern block based on outcrop and drilling data.
The current program has focused on the Eastern block of the concession, with three short term production targets (Pit 4, 6 and 8) which have been subject to land compensation previously.
Killara Resources has entered into a binding agreement with PT. Berkah Ciwi Lestari Kaltim (BCLK), an experienced Indonesian mining contractor, for the further development and coal production from its BEH coal project in East Kalimantan.
BCLK are mobilising and preparing heavy equipment and personnel for an immediate focus on over burden removal to expose coal for extraction, with production anticipated in the Q1 of 2014.
Coal quality
Additional 28 core samples from the undeveloped area in the Eastern block have been sent to Geoservices Lab for analysis. Results will be made available next quarter. A total of 78 samples from drilling have been submitted for analysis at the PT. Geoservices Balikpapan laboratory. 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.
Mining operation
The East block exploration has been completed and ready to commence a mining operation. The mine designs and the mining sequence for the mining operation in Pit 4, 6 and 8 are ready. BCLK will commence the mining operation based on the mine designs from Killara on the compensated areas.
From October to December 2013, BCLK visited BEH numerous times to verify the geological data.
Since late December 2013, BCLK has been mobilising heavy equipment to BEH from Sulawesi and other sites in East Kalimantan.
In the second week of January 2014, BCLK with Killara and the local community in BEH area had a traditional ceremony to commence the mining operation and followed with land clearing.
PT. PAGUN TAKA (KRA 60%)
Killara has completed an initial field reconnaissance program at the PT Pagun Taka (PT) concession in Central Kalimantan. The ~ 1 month field program focused 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, Berai 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.
New Projects and Ongoing Exploration
Killara continues to assess new opportunities in Central Kalimantan, East Kalimantan and South Sumatra. (end of excerpt)