Tabalong coal project advances to resource drilling

Diversified resources company Haddington Resources expects to commence....

  Diversified resources company Haddington Resources expects to commence drilling at its Tabalong Coal Project within two weeks.The Tabalong Coal Project in South Kalimantan, Indonesia, was added to Haddington’s existing portfolio of exploration tenements through its recent acquisition of Minvest International Corporation. The Tabalong Coal Project comprises two KPs, located in the coal bearing areas of the Tanjung Formation in the province of South Kalimantan. The two adjacent KPs cover an area of 63sqkm and are located in the Tabalong district, which has been the focus of intense exploration for coal that has resulted in numerous occurrences of high-grade coking coal products, as well as high-energy thermal coals, both of which can attract premium market prices. The region supports a number of coal mining and exploration areas, the most prominent being Adaro Indonesia, which produces some 35MT per year of low energy thermal coal. Interex Sacra Raya and Kideco are producing mines to the east of the leases and Marunda Graha Minerals to the northwest. The nearby project of Multi Tambangjaya Utama is in the final stages of feasibility, while the Anugerah Group operations located to the immediate west have been producing and are undergoing further production evaluation options. Haddington has been actively progressing exploration of the Tabalong Coal Project, with three geological teams having conducted outcrop confirmation, mapping and sampling on the southern KP (PT SCC) and the southern boundary of the northern KP (PT SPK). According to the company, over 40 new coal outcrops have been located, and 17 coal outcrops identified in previous exploration work have been confirmed. Haddington said a stratigraphic drilling program is planned to commence before the end of October, utilising two core rigs from Minvest subsidiary, Asiadrill. The company said the program would quantify the geometry and extent of the coal seams, including a core program to determine consistency of coal quality, and would be capable of providing sufficient data to determine a resource.