Cokal says its Bumi Barito Mineral (BBM) coal project in Central Kalimantan has a 60 million tonne inferred resource, containing 60% coking coal and 40% PCI.
The company says the maiden estimate is expected to increase as it was generated from an area occupying just 8% of the total lease. Cokal’s executive director Pat Hanna says the drilling program will now extend into the remaining area of the BBM lease, with significant upside potential expected to be confirmed. Three drill rigs have helped to accelerate the exploration efforts at the site.
“Our exploration program at the BBM project has progressed well to enable the evaluation of reliable borehole data which has achieved sufficient core recovery on average in excess of 95%. Drilling is continuing to define further coal resources which are generally in areas of low strip ratio and with higher percentages of coking coal,” he said.
The 19,920 hectare BBM project is adjacent to BHP Billiton’s Juloi tenement which straddles the Barito River on Borneo Island and has several outcrops of bright coal. It is one of Cokal’s four coal projects in Indonesia’s central Kalimantan.
The company’s managing director Jim Middleton says one of the most remarkable features of the drill results is the in-situ coal quality. “The coal has very attractive attributes being very low in impurities while containing the right metallurgical attributes for steel makers.
“The low in-situ ash content indicates there is reasonable opportunity that a direct ship style operation can be developed, avoiding the need to construct a coal washing plant which would involve significant time and capital,” he said.
Cokal says it will advance the necessary engineering studies while the drill program continues in order to understand some of the critical issues at stake in taking the project into production by June 2013.
The global coal group sold 40 million fully paid ordinary shares to UK-based global funds manager Blackrock late last year, netting $20 million for its two year exploration program at BBM.