Pan Asia updates Indonesian coal project

The following is an edited excerpt from Australian mining firm Pan Asia Corporation on Indonesian coal projects, taken from quarterly report released on Monday.

Operations
Drilling Results at Flagship Pre Development Project - TCM - South Kalimantan (75% interest)

This project is located immediately adjacent to the east of Arutmin?s ATA open pit coal mine which comprises multiple coal seams of high calorific value. A successful phase 1 drilling programme in the south western section of this license proved up a JORC Resource of 19.7MT Indicated + 11 MT inferred, on just 16% of the concession area tested to date.

Phase 2 drilling continued during the December quarter with further successful results. Highlights of this drilling are as follows:
? Coal intersected in a further four holes, with cumulative thickness up to 5.07m
? Laboratory analysis indicates high quality bituminous thermal coal, CV up to 7156kca1/g (adb)
? An updated JORC resource statement is planned
? Phase 3 drilling is scheduled to commence in the first quarter to the north and east with the aim of expanding the known coal resource

Following on from previous releases to ASX (including on 17 September 2010 and 16 & 29 November 2010), four additional drill holes have been drilled to complete the phase 2 programme. These four holes, TCM 17B, TCM 18, 1CM 19 and TCM 20, have all returned intersections of coal. 1CM 17B returned a total of four (4) coal intersections over the length of the hole, with a cumulative thickness of 4.52m. 1CM 18 intersected a total five (5) coal seams over the length of the hole, with a cumulative thickness of 5.07m. 1CM 19 intersected a total three (3) coal seams over the length of the hole, with a cumulative thickness of 4.97m. TCM 20 intersected a total of seven (7) coal seams over the length of the hole, with a cumulative thickness of 5.42m.

It is planned to update the 1CM JORC resource statement to include all drill results to date & this should be available in the coming month.

All drilling, logging and sampling is being undertaken in accordance with industry best practice and in consideration of the JORC guidelines. All drill holes are vertical and utilise a mixture of HQ diameter open hole and triple tube coring. Coal samples are being sent to PT. Intertek Utama Laboratory Services in Banjarbaru, Kalimantan. PT. Intertek Utama is a fully internationally accredited coal testing laboratory.

Coal quality analyses have been received for sampled intervals in TCM 17B, TCM 18, TCM 19 and TCM 20, and are listed in Table 2. Calorific value data returned from the latest analysis confirms that the coal can be classified as bituminous thermal coal. As previously announced, the upper seam contains higher sulphur, while the lower seams return lower sulphur values, suggesting that blending may be possible to produce a high quality coal with low to moderate sulphur values.

BCKP Flagship Exploration Project (50% interest)
Preliminary planning was undertaken and the seeking of an access permit to enable the first phase exploration initiated.

Ranrich Projects (cashflow from loan repayments, royalty & offtake)
Ranrich made its first delivery to Noble Resources in October 2010 of 51,616 tonnes.

Deliveries for November were agreed to be waived so that Ranrich could clear some trailing commitments, but 45,587t was delivered in December 2010 in accordance with agreed delivery schedules with Noble.

Ranrich plans for significantly increasing deliveries to Noble through the coming quarters.

Other
Most of the work on the other projects acquired was in the nature of preliminary planning awaiting relisting of the Company on ASX.

Operational fieldwork will be planned and commenced in the next quarter for these projects. (end of edited excerpt)