PADANG Resources, formerly known as Palace Resources, has mapped about 60% of the Lumpo Coal Project concession in West Sumatra with three outcrops identified that may have significance in outlining the potentially coal-bearing horizon.
Exploration to date has focused on known areas of coal occurrences, having easy access, and the exploration process will now seek to complete mapping of the remainder of the Lumpo concession area.
The mapping program has found a number of indications of a coal-bearing sequence trending north-northeast through the concession and dipping to the east at varying angles, but mostly less than 25 degree. The historical data shows a number of coal occurrences to the south of the concession area, including exposures in a number of pits and excavations.
Recent mapping has identified two coal occurrences within the concession, with an exposure of coal at one location being measured at 2.80 metres in thickness. Strike continuity of this coal exposure has yet to be demonstrated.
The exposures of various lithologies reviewed to date shows that coal seams occur within sequence of carbonaceous claystone, hosted by the Lemau Formation, and this carbonaceous claystone sequence has been identified at a number of locations within the concession.
The implications of the various outcrop data collected to date is yet to be determined and there has been no quality analysis data returned from the laboratory to quantify the coal quality. However, a number of samples have been collected from the coal outcrops identified within the concession.
Padang’s managing director Nicholas Clark says, “I am pleased that after much work and effort of the company and its team in the area, the actual observance of coal within the concession area, in what appears to be a seam of reasonable thickness, supports the continuation of the mapping program. I am very excited by the prospect of advancing to the next phases of exploration and equally as excited about the future of the company.”
Padang has signed a binding agreement to make a share placement to professional and sophisticated investors to raise Aus$1.33 million. The funds will primarily be used to finance the exploration and development of the Lumpo project.
Nicholas Clark says the new company name ‘better encapsulates our business and of course the region we work in’. “Over the past three months as managing director I have commenced a deliberate and constructive restructure which is very different from prior to me being appointed.
“The rebranding coincides with the company’s positive inaugural exploration report. With a new strategic direction in mind I presented the new name and rebranding to the board and the company’s shareholders who at the recent AGM supported the change in strength.
“I am very proud of our new identity, which has been developed to encapsulate more about what we do. Throughout 2012 there will be small systematic changes to the way we do business to show our individuality and presence in the market place.”