Strike plans resource expansion at Berau Coal Project

Australian mining firm Strike Resources Limited said it was targeting 10-15 million tonnes (MT) of additional coal resources from its Berau Coal Project in Berau regency, East Kalimantan.

The company said the current 20.8 MT JORC Resource is based upon - 10,000m of drilling in two campaigns along 3km of a 5km strike length. Intermittent occurrences of outcropping coal have been mapped along the entire 5km length.

The additional coal target is based on the projected extension of the deposit comprising the JORC Inferred Resource in the Nyapa East Block along a further 2km of strike to the south-east and preliminary results of the third Berau drilling campaign, the company said.

?There are 9 coal seams in the Nyapa East block, which appear to be a continuation of the seams encountered within the Nyapa West block on the other side of the Kelai River,? it said.

Strike has recently completed feasibility study which focused on the development of open cut mining operations with production scaling up to 1.5MTPA to peak production 3MTPA. The company said in June 2009 that commercial operations could be achieved in the second half of 2010. (denny)