Strike Resources yet to complete coal prospect due diligence
Monday, July 17 2006 - 02:35 AM WIB
Strike, which was formerly known as Fast Scout Limited, has signed an agreement with PT Kaltim Jaya Coal and PT Kaltim Jaya Mineral to exclusively conduct general survey, explore for, exploit, mine and sell all coal in the concession owned by both companies. It did not identify the concession but said it was located approximately 150km north of Balikpapan.
The dateline for the due diligence was initally scheduled for March 15, this year but it has been extended to July 17.
?Should written confirmation of the extension to the due diligence period not be received, the company (Strike) will not proceed with this coal project and there will be no further payments required to be made under the agreement,? Strike said in a statement to the Australia Stock Exchange.
Strike added it had conducted a further 2,040 meters of core and open-hole drilling at the concession and the results of laboratory analysis on core sample taken during the drilling as well as the previous ones has revealed a higher than expected total moisture content in the coal samples.
?This total moisture content affects the marketability, stockpiling and handling of such coal and can have a significant impact on bottomline mine profitability,? Strike added.
Strike wants the due diligence period be extended for another 3.5 months to November 30.(Robert)