Straits reports Jembayan coal reserve increase
Tuesday, August 5 2008 - 05:23 AM WIB
? Indicated Resources have increased from 45.5(1) Mt to 138 Mt (+203%)
? Probable Reserves have increased from 36.5(1) Mt to 92 Mt (+152%)
? Only 15 % of the Jembayan concession area has been drilled
? Revised Exploration Target for Insitu Coal at Jembayan to 300 - 350 Mt (2)
Since it first evaluated Jembayan, Straits Asia has firmly believed that the mine holds substantial upside for its reserves and, therefore, production rates and, ultimately, returns for shareholders. The drilling programme that Straits Asia started after acquiring Jembayan in December 2007 has divided the concession into 7 areas with different levels of priority. The exploration work to date has covered only 15% of the total concession area and resources and reserves based on JORC standards have increased to 138 Mt and 92 Mt respectively.
The coal quality is consistent with products now being sold from Jembayan. The intensive exploration programme will continue for at least another 18 months. Field data from the remaining 9,000-plus hectares of the concession indicate that, with continued drilling, further increases to the reserves and resources are likely. This field data includes wide-spaced open hole drilling completed by the previous owner but only to an average drill depth of 48m.
SAR has increased the Exploration Target for insitu coal at the mine to 300-350 Mt2 and further announcements of the results will be made as the programme develops.
Richard Ong, CEO of Straits Asia said, ?I am looking forward to learning the true extent of the reserve at Jembayan. Our drilling programme to date has been extremely successful.
?The feedback we received very early on from our geologists gave us the confidence to make the decision earlier this year to duplicate the current infrastructure at Jembayan and bring installed capacity to 11 Mt per annum. This work is scheduled for completion by end 2009.
?We are putting the main force of our operational management efforts behind the development of Jembayan with the intention that it will be recognised eventually for what I believe it to be ? a world class mine.?
Including the latest results from stage 1 drilling at Jembayan, the mine?s current resources and reserves are:
| Coal Resources (Tonnes ('000t)) | Measured | Indicated | Inferred | Total |
| Jembayan Total | - | 138 | - | 138 |
| Coal Reserves (Tonnes ('000t)) | Proved | Probable | Total | Marketable |
| Jembayan Total | - | 92 | 92 | 92 |
Notes:
1 Previous figures (45.5 and 36.5) were as at December 2007, less depletion by production in H1 2008.
2 The ?Exploration Target? nominated as 300-350Mt of Insitu coal, represents an ?Exploration Target? as defined under the JORC 2004 Code. The potential quality and quantity is conceptual in nature, there has been insufficient work done at present to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.