Palace acquires exclusive rights to mine and market Petangis coal
Monday, January 21 2013 - 08:02 AM WIB
ASX-listed firm Palace Resources Limited said that it?s 70% owned subsidiary Paser Pte Ltd (Paser) has signed an MOU with shareholders of PT. Punggungan Tengah Samudera Indonesia (PT PTSI) for the exclusive rights to explore, mine and market coal from a 100 hectare Petangis Project in East Kalimantan.
Previous samples of coal from Petangis show calorific values from 6876 ? 7149 Kcal/kg (adb), 107 ? 1.54% Sulphur and 11.26 ? 16.02% ash content.
Under the MOU between Paser and PT PTSI, Paser has been granted the exclusive right to explore, mine and market coal from the designated 100 hectares.
An application to convert the concession from a general survey status to exploration status was submitted to the local authority in early December 2012.
The exploration status is expected to be granted by early February, 2013 and will provide Palace with the ability to mobilise a drill team and undertake its full due diligence process.
The concession area lies within the Tanjung Formation, located ? 127 Km southwest from Balikpapan (5hr drive) and is approximately 4km to the north of the Company?s current exploration project (Paser Project).
Editing by Adianto P. Simamora