Palace Resources has mobilized a reconnaissance and drilling team to the KCM project in South Kalimantan after signing a Memorandum of Understanding (MoU) with PT Solusi Coalindo. The team will investigate the economic viability of mining the site in Desa Lok Tunggal District Pengaron.
KCM takes in a 200 hectare coal contract of work northeast of Benjarmasin with all environmental and mining approvals. Good quality haul roads exist in the area with the immediate stockpile 25km away and jetty locations within 35km of the stockpile.
Palace must complete due diligence before the two parties sign a binding joint venture agreement to continue development of the site. The terms of the MoU will see Palace fund all capital and operational commitments and expenses while the project is operated as a joint venture.