Killara updates Indonesia gold, coal projects
Thursday, October 27 2011 - 08:20 AM WIB
Belu Manganese Project (KRA 80%)
The Belu Manganese Project (?Belu?) is located approximately 35km east of Atambua, the capital of Belu Regency, West Timor, Republic of Indonesia. The project consists of three concessions (IUP?s) covering a combined area of 5,934 hectares in an area of known manganese mineralisation.
Previous exploration completed by Killara, consisting of geological mapping and surface / rock chip sampling, has identified two broad target zones potentially prospective for primary manganese mineralisation.
A ground geophysical program consisting of widely spaced dipole - dipole IP traverses across the target zones has commenced. This program is aimed at defining any conductive and/or chargeable responses potentially associated with mineralisation. It is intended that this program will assist in focusing an initial drilling program to scope the potential of any mineralised zones identified.
Ora Banda Gold Project (KRA 100%)
No field work was completed during the quarter. Targets have been identified for follow up exploration with field activities being planned to assess these targets.
Four year extensions of term have been received for the Orinda Project, Prospecting Licences 24/4020 to 4024 inclusive. Extension of term applications have been lodged with the Western Australian Department of Mines and Petroleum for the Windanya Project, being Prospecting Licences 24/4028 to 4031 inclusive. It is expected that these licences will be extended for a further four year term.
PT Tavesco Killara Energi (KRA 50%)
During the quarter Killara entered in to a Shareholders? Agreement with PT Tavesco International (?Tavesco?) to formalise the establishment of a joint operating company in Indonesia, PT. Tavesco Killara Energi (?PT TKE?). PT TKE is being established for the purpose of sourcing, exploring and potentially developing coal projects in the Republic of Indonesia.
Discussions are continuing with Tavesco with regard to the selection of concessions suitable for inclusion within PT TKE which will be subject to confirmatory site inspections prior to the commencement of detailed due diligence on concessions as required.
Indonesian Project Pipeline
Killara has a very well developed network of business contacts in the Republic of Indonesia through which it has been, and continues to be, offered a range of resource projects for potential acquisition and/or joint venture. Projects being evaluated cover a range of commodities including manganese, coal and precious metals.
Evaluation of these opportunities is ongoing and shareholders will be advised should a transaction progress to a more formal stage of negotiation.
Corporate
Killara has enhanced its technical team with the appointment of Tully Matthews, a geologist with extensive experience in the Indonesian coal industry. Tully has spent the past three and a half years working for a Jakarta based geological and mine planning consultancy firm and has been involved in resource estimation, exploration management and database management for a range of clients throughout Indonesia. As part of Tully?s employment agreement he has been issued 1.5 million employee options divided in to three equal tranches; 500,000 options that vest 12 months after commencement exercisable at $0.40 on or before 31/12/201 3, 500,000 options that vest 24 months after commencement exercisable at $0.50 on or before 31/12/2014 and 500,000 options that vest 36 months after commencement exercisable at $0.60 on or before 31/1 2/201 5.
As at 30 September 2011 the Company had a cash balance of $3.3 million and as at 26 October 2011 the Top 20 shareholders held approximately 55% of the capital of the Company. (end of excerpt)