Release: Straits Asia announces resource upgrade to over 1.4b tonnes
Wednesday, March 24 2010 - 10:34 AM WIB
JEMBAYAN MINE
The latest results form part of an extensive, long-term exploration programme at the Jembayan mine. The 2009 phase of the programme consisted of up to 15 drill rigs and covered almost 40% of the tenements at Jembayan, in addition to the 35% covered in 2008.
Due to the almost complete coverage of the Jembayan property by coal sequences, the primary focus in 2009 was to understand the Coal Resources to the fullest extent of the tenure. This broad brush picture of the Resource base was essential to form the foundation of long-term mining plans. The Group can now focus on the next stage of the programme to convert the Resource blocks into Reserves, thus providing a robust inventory for sustained production from the mine.
As a result of this work the total Resource for the Jembayan mine is now estimated at 504 million tonnes. During the course of 2010 the focus of exploration at Jembayan will shift to a more detailed, infill drilling programme within the new Resource blocks to provide a steady conversion to Reserves. Straits Asia expects to update its Reserve position early in the second half of 2010.
SEBUKU MINE
Straits Asia continued to explore the coal formations that form part of the Western Leases in the Sebuku Strait. The Sebuku Strait is a relatively shallow stretch of water between Sebuku Island and Laut Island. The mean water depth in the strait is approximately 3 metres.
The majority of the drilling was undertaken within the northern part of the Western Leases tenement covering an area of just over 2,500 hectares. Drilling was completed over 7 kilometres along the coastline of the island and up to 2.5 kilometres from the shore. Drilling has now intercepted the entire sequence of coal seams for over 13 kilometres along the island?s western shoreline.
In addition Straits Asia also completed more detailed infill drilling over the southern part of the Western Leases tenement. In 2009 the Group completed a further 73 holes for 16,800 metres. In this area the main coal sequence consists of 14 minor and major seams with a cumulative thickness of approximately 16.5 metres. The coal sequence is divided into 3 main packages with a vertical extent of approximately 60 metres. The major seam has a consistent thickness of approximately 7 metres. The seams dip gently to the north-west at around 5 degrees. The complete sequence has now been intercepted consistently over 4,500 hectares. The updated Resources for the Sebuku Mine are provided in the table below The total Resource for the Sebuku Project is currently estimated at 928 million tonnes.
Straits Asia is also working on a pre-feasibility study to consider the various options available to recover the significant coal Resources identified in the Western Leases tenements. The results of this study are expected to be known by the end of 2010.
To the north of Straits Asia?s current operations on Sebuku Island lies an area known as the Northern Leases. A large area covering the company?s coal concession was re-zoned by the forestry department in 2009, allowing application for final mining permits. These applications have been made and are awaiting approval. Straits Asia expects to further increase Resources and Reserves over this part of the property through a drilling programme set to proceed as soon as access is granted.(end of release)
Coal Resources (Million of Tonnes) |
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| Project As at 31 December 2009 | Measured | Indicated | Sub Total - Meas. & Indic. | Inferred | TOTAL |
| Sebuku Island | 18 | 40 | 58 | 70 | 128 |
| Sebuku Western Leases | 0 | 420 | 420 | 380 | 800 |
Sub Total, Sebuku |
18 | 460 | 478 | 450 | 928 |
| Jembayan | 16 | 323 | 339 | 165 | 504 |
| Grand Total | 34 | 783 | 817 | 615 | 1,432 |
| Straits Asia's Coal Resources and Reserve estimate reports are made in compliance with the JORC Code. | |||||