Palace Resources to secure W. Sumatra coal mine project

Australia listed firm Palace Resources is looking to boost the company's exposure to the Indonesian coal market, and has secured an exclusive four month right to negotiate a joint venture on a prospective coal project in West Sumatra.

Palace will now commence a drilling program as part of due diligence to confirm both previous drilling on the Izin Usaha Pertambangan (IUP), and also to test earlier reconnaissance rock chip samples.

The intention to negotiate a joint venture on the IUP is subject to a positive outcome from the due diligence, the company said on Tuesday.

Key points of the potential target asset are: Production license covers 922.7 hectares anticipated to be able to produce up to 10,000 tonnes per month immediately; Only 28 hectares of the IUP has been drilled representing just under 3% of the IUP area; and Samples analysed by the Vendor has returned several samples of high quality coal with elevated calorific values and low moisture/ sulphur content.

The company continues to build strong partnership in the region, it added. (denny)