Pan Asia Corporation has announced a major upgrade to its JORC resource estimate for its flagship TCM underground coal project in South Kalimantan. Results from 18 boreholes in a current drill program indicate the resource contains 114.6 million tonnes of coal.
The 3440 hectare TCM project is about 250km south south-west of Balikpapan, adjacent to the ATA open pit coal mine owned by one of Indonesia’s largest coal producers PT Arutmin.
In June 2010, when operation and production approvals were granted, the project’s indicated and inferred resources totalled 30.7 million tonnes.
The company’s CEO Alan Hopkins says an upgrade to the resource estimate of this level has greatly surpassed expectations. "This massive increase in JORC resource is great news for the company and its shareholders. These results cement the company's faith in pursuing this quality asset as our flagship project," he said.
“While drilling is ongoing, the results to date have all but confirmed that the planned scale of operations is well supported by the proven resource. All other test work is well advanced and is feeding into the full Feasibility Study, which is under way and scheduled for release in Q1 2012.”
The coal quality model will be further updated when all the coal quality results are in for the current drill program.
Washability tests and subsequent analysis of the results have been undertaken on a 500 tonne bulk sample to develop a conceptual Coal Handling and Preparation Plant design. Further test work and quality data analysis will lead to a specification of a saleable product, with the results expected later this month.
Pan Asia Corporation is a rapidly growing diversified resources company primary listed on the Australian Securities Exchange and secondary listed on the Frankfurt Stock Exchange, with offices in Perth and Sydney, Australia and Jakarta, Indonesia.
The company aims to be a major supplier of key resources into the expanding Asian markets and via the acquisition of Innovation West which has a number of significant coal assets in Indonesia.