Release: Churchill Mining: First coal volume calculations at the East Kutai Coal Project
Wednesday, December 12 2007 - 11:25 PM WIB
Internal modeling by the Company?s geological team has identified between 85-90 Mt of coal within the first sector of the initial drilling envelope of the EKCP. The geological data and model will be sent to independent coal geological experts for review and for the compilation of an ongoing JORC compliant Resource Statement, with the first stage of the Statement expected to be completed by the end of Q1 - 2008. (At this point in time the volume calculations do not form a JORC compliant resource and should not be considered as such.)
These initial volume calculations have focused on the first three coal seams which can be correlated across the area drilled to date, currently being conducted in the northwest area of the RTM block. The intersected coal seams dip to the east-northeast at 10? and infill drilling is closing the drill spacing from the current 750-1,000 metres to 250-500 metres. This drill spacing will add data to the geological model currently being developed and allow the correlation of a number of other seams intersected in the drilling to date, which have not yet been considered in the calculations.
Drilling continues at the EKCP with further coal intercepts recorded in the most recent holes, consistent with previous drilling. It is expected that the target previously set for the exploration programme, being 100Mt of JORC compliant resources by the end of March 2008, can be achieved at the current rate of drilling and exploration.
Paul G. Mazak, Churchill?s Managing Director, confirmed that, ?The Company is well on its way to defining 500 million tonnes of JORC compliant coal Resources by the end of 2008, inclusive of a Mining Reserve of 100 million tonnes.? (end of release)