Pan Asia Corporation has executed a formal agreement with underground mining group KOPEX to undertake a final feasibility study on the TCM Coal Project in South Kalimantan.1

The agreement follows the recently completed independent study which indicated the project’s viability targeting 1.5 million saleable tonnes of high CV coal annually over a 15 year period.

Pan Asia has also recently appointed Palaris Mining as its independent adviser to the final feasibility study. Palaris has extensive experience in consulting on underground mining projects.

The current resource for the TCM concession is 52.20 million tonnes comprising 22.04 million tonnes of indicated resources and 30.16 million tonnes of inferred resources. The average coal quality is 6534 kcal/kg (adb), moisture 5.65%, ash 14.24% and TS 1.16%.

The study is scheduled to be completed by end of the first quarter of 2012 and will represent a major step forward for the company. Pan Asia’s CEO Alan Hopkins says, “We have now launched into the final feasibility study stage of this project and its outcome should prove to be one of the catalysts that significantly re-rate the company. Additional drilling and test work has already started and we look forward to the resource updates to come.”

In June 2011, Pan Asia announced that KOPEX had completed an independent study on the TCM project with a recommendation that the project be advanced to final feasibility stage.

This study indicated that 1.5 million saleable tonnes annually 15 years, following initial construction, is considered achievable. Based on the levels of detail in that study, the target underground area at TCM presents a viable and economic opportunity. Additional underground mineralization may exist in the North area.

Kopex considered a number of mining methods that could be employed and concluded that retreat longwall mining would be the preferred method due to potentially higher extraction rates and controlled caving methods to best attain the saleable tonnes established for the project.

www.panasiacorp.com.au

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