Wednesday, January 20, 2010

Pan Asia drilling at two Indonesian coal projects

Western Australian-based Pan Asia Corporation Ltd (ASX:PZC) has completed initial drilling of the Roda Niaga Coal Project near Batulicin in South Kalimantan, Indonesia. The 6,412 ha Roda Niaga concession, along with the adjoining Kusan Persada concession, form the original assets acquired by PZC prior to the current planned acquisition of Innovation West. Coal was intersected in every hole drilled; with seams ~ 2 m thick but containing some parting and high ash content. However, gross calorific values are moderate to high, with further improvement possible through washing. Sulphur values are generally low.

Drilling activities have also begun on the TCM Underground Coal Project, located approximately 16 km to the north of Roda Niaga.The 4,148 ha concession area is situated immediately adjacent to the 2 Mt/y ATA open pit thermal coal mine currently being operated by PT Arutmin Indonesia. Coal seams being mined in the ATA pit are observed dipping shallowly into the TCM concession area, with the down dip position of these seams the key focus of the current exploration drilling campaign. The ATA mine typically produces a high-quality thermal coal with high calorific values, moderate sulphur and low ash.
 
"This is a good first up result & we are now keenly looking forward to the outcome of the TCM drilling," CEO Alan Hopkins commented.

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