Western Mining completes due diligence on Pancareka project
Wednesday, October 2 2013 - 08:07 AM WIB
ASX-listed firm Western Mining Network Limited announced on Wednesday the completion of due diligence on the Pancareka Project in Tanah Bambu regency, South Kalimantan.
The first three months of due diligence were hampered by heavy rains, the company said in a statement filed with the Australian Stock Exchange. Still, during the last two months, it was able to perform substantial exploration activities on the project
A mapping program was carried out along the northern and southern area of the tenement with the collection of outcrop samples for laboratory analysis. There were four coal outcrops and one claystone outcrop identified during the survey within the tenement.
Based on the outcrop data, it can be identified that the concession area is formed by a claystone lithotype unit with sandstone and coal interbedding. The lithotype shows a relatively southwest to northeast strike direction with a very steep dip angle between 600 to 70? which indicates that this area can be considered as a geologically complex region.
The company has concluded that the Pancareka Project demonstrates only minor potential for coal mining. The combination of high dip angle and complex geology indicates that a high stripping ratio exists which would not be economically feasible for the medium grade thermal coal that was found on the tenement.
The company will continue to evaluate other opportunities in its pipeline.
Editing by Johannes Simbolon