SouthGobi reports E. Kalimantan coal resource
Monday, February 9 2009 - 04:18 PM WIB
The SW and E resource blocks on the concession contains measured plus indicated coal resources of 12.2 million tonnes, with an additional inferred coal resource of 5.2 million tonnes, it said.
A recent bulk sample from the SW resource block within the concession has confirmed high-volatile metallurgical coking coal amenable to surface mining, it added
The Mamahak JV is comprised of four concessions totaling approximately 22,976 hectares, which are all located in the Haloq coal bearing formation. The coal found in this formation is generally of a quality rank ranging from sub-bituminous to bituminous with low moisture content and high fluidity values.
On January 7, 2009 SouthGobi Energy Resources obtained a Location Permit from the local Government in East Kalimantan, allowing the company to commence surface coal mining of the SW deposit. SouthGobi is planning to initially develop the SW Block which is the closest deposit to the Mahakam River.
SouthGobi has an 85% working interest in the Mamahak JV and has provisions in the joint venture agreement to increase its working interest to 100%. (alex)