Pan Asia completes due diligence on E. Kalimantan coal projects

ASX-listed mining firm Pan Asia Corporation Ltd said on Monday that the legal and technical due diligence on the key Nadvara and Perdana Maju Utama coal projects in East Kalimantan has been completed with highly positive results.

?Innovation West Pty Ltd (IW) will therefore now finalise the profit share and offtake agreements with regard to these two key projects, while the company will immediately commence preparations to call a general meeting for the relevant shareholder approval for its acquisition of IW, the company said in statement.

Below is the summary of the two projects:

Production - Thermal coal, East Kalimantan

Nadvara - profit share
? Current production of 1.5 Mt per annum.
? Gross Calorific Value of 5,300 - 5,500 kcal / kg (adb).
? Excellent location, with haulage road, stockyard and loading jetty.
? JORC reserve and resource of 25.5 Mt with additional potential.

Development - Thermal coal, East Kalimantan

Perdama Maju Utama - profit share
? Target production of 1.2 Mt per annum, expected to commence in late 2010.
? Gross Calorific Value of 5,500 - 5,800 kcal / kg (adb).
? 36 holes drilled.
? Initial Exploration Target of 30-40 Mt.

Due diligence continues to proceed on the balance of the project portfolio, including BCKP, Surya Ibrahim, Samudera Hindia Jaya, Ratu Ayu and the other projects, it said. (denny)