Release: Straits Asia Resources: Acquires new coking coal concession in C. Kalimantan

4 May 2007 -- Straits Asia Resources Limited ( SARL ) is pleased to announce that it has secured the rights over a large coal tenement in Central Kalimantan situated some 50km east of the Mt Muro Gold Mine that it operates for its Australian parent company. The tenement is adjacent to BHP’s Maruwai Coal Project, which hosts a world class deposit of high quality coking coal and is currently being brought into production.

 

A first stage programme of sampling and field mapping on the property undertaken by consultants, has confirmed that the tenement contains significant outcrops of both high calorific value coking coal of Eocene origin as well as Miocene thermal coal.

 

A second stage programme currently underway has identified that some 35 outcrops of Eocene coal occur in a two km wide belt that dips southerly at 18º to 50º. Within the belt there are at least eight seams which range in thickness from 0.25m to 2.5m and have strike lengths of 2.5 to 4 km The exact number of seams is yet to be confirmed and will require further field work including drilling. From initial sampling, the calorific value of the coal is around 8,000 kcal/kg (adb).

 

In addition to the Eocene coal, about 60 coal outcrops of Miocene coal have been located in an eight km long curved formation. The seams generally dip to the east at between 10º and 50º. The coal seams identified to date are between 0.15 to 1.0 m thick, but in many places the absolute thickness has still to be measured in test pits. Potentially, more than 6 seams within the formation have strike lengths that vary between 3 and 6 km. From previous work it is known that the calorific value of the coal is around 6,000 kcal/kg (adb).

 

David Toms, Chief Executive Officer explained, A key feature of SARL s expansion strategy is to widen its operating base beyond our highly successful Sebuku Coal Operation. The new Laung Project area is potentially very exciting as it forms part of a region that looks set to underpin the next wave of coal supply growth from Indonesia. Our team s experience in developing projects within Indonesia gives us the expertise and resources to successfully develop this opportunity at a time of increasing demand for coal products. (end of release)