Cokal has estimated the exploration target at the Eastern block of its Bumi Barito Mineral (BBM) site at between 200-350 million tonnes. The estimate is based on the coal occurrences less than 200 metres deep but does not include the 60 million tonne inferred resource announced in December 2011.
The 8000 hectare Eastern block of BBM is made up of an area east of the Barito River, which accounts for about 40% of the entire project in Indonesia’s central Kalimantan, Murung Raya Regency.
Cokal’s executive director Pat Hanna says the eastern section of the project has been the company’s exploration focus. “We have four drill rigs in operation drilling progressively towards the eastern boundary.”
Recent borehole data, down-hole geophysical logs and seam outcrop mapping indicates there are at least 13 coal seams in this eastern section. “The seams range in thickness from 0.2 metres to 1.5 metres and typically consist of bright coal occasionally interlaminated with a carbonaceous mudstone parting,” Pat Hanna says.
In May this year, Cokal announced the discovery of a new high quality coking coal seam at the site. The ‘J’ seam is the uppermost of nine seams identified at the 19,920 hectare project which is adjacent to BHP Billiton’s Juloi tenement along the Barito River. This new seam overlies three others which were used to estimate the JORC-compliant inferred coal resource last year.
The company is progressing with plans to take BBM into production as soon as possible, with an initial 1-2 million tonnes per annum start up target. Cokal is also advancing its feasibility and environmental studies necessary to obtain mining approvals.