SouthGobi Energy confirms metallurgical coking coal at E. Kalimantan project
Wednesday, November 5 2008 - 04:19 PM WIB
The company reported that the sample has CV of 7,652kcal/kg (ADB), sulphur of 0.85 percent (ADB) and fixed carbon of 48.51 percent (ADB).
The bulk sample was taken on the South-West Resource Block within the Mamahak concession and was comprised of proportioned blending of several coal seams from an area where the company plans to commence mining in the first quarter of 2009, said the company.
SouthGobi now owns 85 percent of the Mamahak coal project with provisions to increase its ownership position to 100 percent.
The MCM concession area under development at Mamahak is located approximately 30 kilometers from the Mahakam River, a major coal transportation route. The company plans to use barges to transport coal to ocean-going vessels.
"The Company believes these results further confirm that coal products from the Mamahak Coal Project will be well received and valued as an attractive component in metallurgical coke blends, particularly in Asia,? the company said.
PT Multi Mamahak Batubara (PT MMB), the Company's Indonesian subsidiary based in Jakarta, Indonesia, is distributing introductory coal samples from the bulk sample to Asian Steel Mills for further testing and market introduction.
The company also reported that all the current exploration data has been transferred to the company's geological consultant, SMG Consultants in Jakarta for coal deposit modeling and National Instrument 43-101 compliant resource estimate and classification. Completion of this report is scheduled for the fourth quarter 2008. (alex)