Orpheus receives new B2 project mine plan

ASX-listed company, Orpheus Energy Limited announced that it had received a short-term mine plan from an Australia-based consulting and engineering firm, Minarco-MineConsult (Minarco) for its 51 percent interest in the B2 coking and thermal coal project in East Kalimantan, allowing the operation to start within next few weeks.

The short term mine plan will target to produce 127,000 tonnes with strip ratio of 10:1.

The company said that Minarco mine plan identified four new mine pits for a total of 246,000 tonnes which would be sufficient up to six months of coal sales at Orpheous? target production rate of 40,00 tonnes per month.

?A life of mine plan was currently being developed to extend the mine beyond this short term plan, which will involve additional drilling to confirm mining tonnages,? the company said.

Orpheus will appoint a contractor to mine the B2 project, to be selected from three tenders. It said that successful mining contractor would also enter into a sales offtake agreement with Orpheus to purchase the coal at current market prices.

Meanwhile, Orpheus added that its 51% interest in the neighboring B6 Exploration KP project was being converted into an Exploitation IUP in preparation for mining after B2. (romel)