Metallurgical coal group Cokal Ltd has released a coal resource statement for the eastern portion of the Bumi Barito Mineral (BBM) coal project, comprising 10.5 million measured tonnes, 13.5 million indicated tonnes and 237 million inferred tonnes. The total estimate of 261 million tonnes represents a 340% increase on the previous estimate.
The resource report, which was compiled by Cokal’s Competent Person, was independently review by SRK Consulting which confirmed the report to be compliant with the 2012 version of the JORC Code.
The main exploration activities completed to date include surface mapping of coal and non-coal outcrops, shallow drilling using HQ coring for sampling, and deep drilling (average 400 metres depth) for determining the continuity of the coal seams across the BBM East Block.
This resource for the B, C, D and J seams was based on the data collected from these activities and a minimum seam thickness cut-off of 0.6 metres. Both measured and indicated resources have been estimated for the J seam only which has been confirmed as a coking coal from analyses conducted in an Australian laboratory. A portion of the B, C and D Seams produces a premium PCI product such that the overall proportion of PCI to coking coal is 10:90 for the total resource.
The additional resources have been determined primarily from drilling results in the KLM area, including deep stratigraphic boreholes (up to 400 metres deep) which have confirmed the continuation of the J Seam to the east of the J Seam outcrop area. The area covered by the current estimate is 30% of the total area of the BBM Production IUP tenement licence.
BBM project is northwest of the township of Puruk Cahu, the capital of Murung Raya Regency, Central Kalimantan.
Cokal executive director Pat Hanna says, “This coal resource upgrade is in line with the exploration target previously announced. Further in-fill drilling will define additional coal resources and increase the proportion of measured and indicated resources.”
Chairman and CEO Peter Lynch says, “Cokal is close to completing a definitive feasibility study using the latest coal resources. The economics of the initial five years of production are very favourable and the DFS clearly demonstrates a generous cash-flow can be generated in this early stage of production. I am particularly excited of the long term potential of BBM which will include extraction of a large portion of the resources using efficient underground mining methods”.