Kangaroo Resources has prepared and refined a detailed exploration program for the Graha Panca Karsa (GPK) coal concession in Indonesia. The company has also issued a tender to various contractors for drilling and geophysical logging services.

The drilling campaign is expected to begin by January 2017 and is proposed to comprise approximately 1830 metres of drilling, including 344 metres of coring, and 42 drill holes. All drill holes will be geophysically logged.

The aim of the program is to confirm previous drilling works performed on the site and gain a better understanding of the coal seam geology.

Concurrent with the planned drilling, Kangaroo will undertake survey work to fill in some gaps in the topographical information.

The company is socialising the impending drilling program to surrounding communities and will award the drilling and geophysical logging contracts upon its completion.

At the Pakar project Kangaroo aims to commence a drilling program at Tiwa Abadi (TA) as soon as it has completed the regulatory permitting required to do so.

TA shares a common northern border with BAYAN’s Bara Tabang concession which has been extensively drilled whereas TA only has 11 drill holes across the whole 5000 hectare concession.

The company has applied to the regional government for an exploration Borrow Use (Pinjam Pakai) permit, however this is being delayed due to the regional government issuing a moratorium on new Pinjam Pakai permits until April 2017.

Kangaroo is also attempting to obtain Clean and Clear Certificates for several overlapping concessions. A number of the Pakar concessions are subject to an overlap of a portion of their areas with an adjacent concession holder. Until this issue is resolved, the Central Government will not issue a Clean and Clear status for these concessions which limits the company’s ability to progress development of these concessions. Kangaroo is hopeful that a resolution to Clean and Clear issue will be resolved by year-end.

Resumption of operations at the Mamahak Coal Project remains dependent on coal markets improving, and establishing a more reliable logistics route for coal sales.