Cokal Ltd has released an updated JORC 2012-compliant resource statement for the eastern portion of Bumi Barito Mineral (BBM) coal project. The measured resource of 19.5 million tonnes is 85% more than the previous estimate while the indicated resource of 23.1 million tonnes is a 70% increase.

The total resource is now 266.6 million tonnes with 224 million tonnes in the inferred category.

Based on the data collected from exploration conducted to date and a minimum seam thickness cut-off of 0-.3 metres, Cokal has established the resources for B, C, D and J seams.

Exploration to date has included surface mapping of coal and non-coal outcrops, and channel sampling of coal outcrops; shallow drilling using HQ coring for sampling; and deep drilling at an average depth of 400 metres for determining the continuity of the coal seams across the BBM East Block.

The upgrade of resource to higher JORC categories is primarily due to additional outcrop mapping and subsequent channel sampling of the coal for Seams B, C and D in the areas covering Pits 1 and 2 in BBM East. These channel samples gave a reliable representative sample of each coal seam.

The BBM coal resource includes resources which have the potential to be economically extracted using both open pit and underground mining methods.

The coal seams are generally thicker than 1 metre and the roof predominantly consists of very hard sandstone while the immediate 1-2 metres of roof consists generally of a competent siltstone. This combination is ideal for extraction of the deeper resources using underground methods such as thin-seam longwall mining.

The area covered by the current resource estimate is 30% of the total area of the BBM Production IUP tenement licence.

The resource has been confirmed as a metallurgical coal from analyses conducted in an Australian laboratory, and is comprised of 90% coking coal and 10% PCI/semi-soft coking coal.

The BBM project is northwest from the township of Puruk Cahu, the capital of Murung Raya Regency, Central Kalimantan.

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