Pan Asia has begun further drilling to follow up recent positive drill results from the northern end of its flagship TCM project in Indonesia. The project covers 3440 hectares in the Mantewe district, Tanah Bumbu Regency, in South Kalimantan province.  1

Four exploration holes were completed last month to identify the continuation of coal seams from the deposit’s south. These holes identified the SU and SM seams as being shallower than expected with narrowing parting between them. Pan Asia says this means it could extend the current TCM mine plan and design to the north, or consider a second independent underground mine development plan in this area.

Six holes have been planned in the follow up drilling, over 2470 metres. The company has allocated 10 weeks to complete the program.

Pan Asia chief executive officer Alan Hopkins says if these holes confirm that the recent positive results achieved continue to the concession boundary, the company has an exploration target of between 200-220 million tonnes of 6500-6800 calorific value coal for TCM.

The basis for this target is that the current JORC resource of 114 million tonnes has been based on drilling 35% of the southern concession, with 50% of the concession area yet to be explored. The potential quantity and quality target is currently conceptual in nature with insufficient exploration undertaken to define a mineral resource and it is uncertain if further exploration will result in a mineral resource.

Alan Hopkins says, “We have moved quickly to follow up the recent positive results with more drilling as this could add significant mine life and value in the very near term to the TCM high CV coal project.”

The project has a 15 year production licence, which is extendable for a further two 10-year periods under Indonesia’s new mining laws. The company will use underground, long-wall mining techniques to access the coal deposit.

www.panasiacorp.com.au

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