Orpheus reports potential additional JV opportunities with Mega Coal
Thursday, February 2 2012 - 02:40 AM WIB
Australian listed miner Orpheus Energy Limited reported that its strategic alliance with PT Mega Coal, has provided a number of potential additional joint venture (JV) opportunities upon which Orpheus Energy is conducting detailed due diligence to ascertain the exploration and near-term production potential as well as confirming the titles are in order.
In early November 2011, Orpheus Energy acquired rights to a joint venture equity interest in up to 12 Production IUPs in Papua province near the west coast of Mamberamo. Coal outcrops throughout the tenement and recent coal samples feature: low ash (4.2% - 5.1% adb); low sulphur (0.29% - 0.38% ar); total moisture (14.1% - 24% ar); and energy content of 5311-6043 Kcal/kg.
Orpheus conducted an initial site visit for orientation purposes in mid December and further data collection and collation had commenced early in January 2011, with field exploration visits about to get under way in February to assess the potential of the project area with the intention of establishing an initial exploration target.
Orpheus has two project areas in East Kalimantan - the B26 coking and thermal coal project (51% interest) and the B34 project (also 51% interest).
Located approximately 100km from the regional centre of Balikpapan and about 26km from a barge loading facility, the B2 mining operation is targeting a semi-soft coking and thermal coal production split of 15% and 85% respectively.
Since assuming the operational management of B2 in September 2011, Orpheus has commissioned extensive new mine planning by Minarco MineConsult as well as local Indonesian mine engineers.
Orpheus is currently finalizing the appointment of a new mining contractor, and coal sales offtake agreement, which will allow the company to re-commence B2 production, targeting a rate of 40,000 tons per month.
Orpheus has progressed further exploration plans for the adjacent B6 tenement to delineate additional coal resources. The drilling program is expected to commence later this half, with the intention of moving the B6 tenement into production thereafter.
Located about 60km west of B26, the B34 project comprises 8,000 hectares area. An exploration program is currently being finalised for Q1 2012.
It is ultimately planned for B34 coal to be mined using the same road/port infrastructure as for B26. Following conversion of B34 Exploration KPs into Exploitation IUPS, scheduled for Q2 2012, mining from B34 is intended to double Orpheus Energy?s total planned production out of the East Kalimantan area.
The strategic alliance with Mega Coal has also facilitated the opportunity to investigate additional coal concessions in the Kintap and Tapin areas of South Kalimantan. These tenements all have good infrastructure, and have easy proximity to barge loaders or appropriate port sites and transport options.
Editing by Denny H. Tarigan