Pan Asia confirms open pit resources at TCM project

ASX-listed Pan Asia Corporation announced confirmation of a potential open pit area on its 75 percent owned Trans Coal Minergy coal project in South Kalimantan.

The company said the potential open pit area was based on interpretation of results during its phase 3 in-fill and resource drilling expansion program.

The company said after completion of 14 drill holes, results confirm that in this high CV coal deposit, based on an expected workable strip ratio of ≤20:1, there is an open pit resource of approximately 3 million tons that falls within the previously defined JORC resource estimate, undertaken by Kopex in February 2011.

The topographic survey over this potential open pit area is expected to be available within 4 weeks. Once received, detailed pit optimizations and sensitivity analysis will be commissioned followed by preliminary pit designs.

It said further drilling may be required to better define the extent of the open pit area. It is expected that a final design will be completed by the end of the year for inclusion in the feasibility study currently being undertaken by Kopex Mining Contractors.

?This is extremely encouraging. A preliminary open pit mine, combined with the planned extensive underground mining operations, would bring project cash-flows forward while also generating a preferred entry for underground mining,? Pan Asia's CEO, Alan Hopkins, said. (romel)