Study ticks viability of 53Mt coal project
THE BOURSE WHISPERER: Pan Asia Pacific has received the results of an independent study carried out on the TCM underground coal mine project in Kalimantan Indonesia.
The study on the 53 million tonne JORC resource project was carried out by underground mining group
KOPEX.
Pan Asia holds a 75% interest in the TCM project and commissioned KOPEX to undertake an Independent Study on all its key aspects.
“The completion of this study provides the Company with a roadmap to deliver the project to full production,” Pan Asia Pacific chief executive officer Alan Hopkins said in an announcement.
“We now look forward to undertaking all work required to complete the Final Feasibility Stage and bringing this project into production”.
According to the company the outcomes of the study indicate its original target of production of at least 1.5 million saleable tonnes per annum over a 15 year period (following initial construction), is considered achievable.
The study also showed the target underground area at the TCM mine to be a viable and economic opportunity with additional underground reserves possibly existing in the North area.
Current resources for the TCM concession area, dated 31 January 2011 are stated as 53,237,303 tonnes, comprising 22,418,736 tonnes of Indicated Coal Resources and 30,818,567 tonnes of Inferred Coal Resources.
The study has identified the quality of coal to have an average calorific value (adb) of 6534 kilocalories per kilogram (Kcal/kg), moisture 5.65% and ash 14.24%.
The most appropriate mining methods to emerge from the study is retreat longwall mining as these are considered the best option to attain the target production levels established for the project.
“Mine designs are expected to be conservative with respect to potential longwall extraction rates,” Pan Asia Pacific said.
“Increased longwall dimensions would increase reserves, overall productivity, & project economics.
“The access to the seams has been assumed to be by inclined drifts from the surface. KOPEX recommends that the option of access from an opencut highwall should be pursued as part of the future studies.
“Initial indications from the geotechnical assessment are that the ground conditions will be better than those encountered at the Indominco underground mine in East Kalimantan.
“This is an important and positive factor to the project as there were no major geotechnical issues encountered at the Indominco mine.
“Based on the potential benefits as described, KOPEX recommends that the TCM project be advanced to full final feasibility stage.”
Pan Asia Pacific recently commissioned a next phase of drilling and further detailed test work required to complete of the Full Final Feasibility Study.
The company will also use the drilling results in the Full Final Feasibility Study in order to upgrade the existing JORC resource and carrying out detailed mine planning, as well as assessing the open pit potential.
The drill program is planned to comprise 13 holes for 4270 metres. This will assist it to progress the southern underground mining area through to Full Final Feasibility Study and increase the level of confidence (resource and reserve estimates) in the proposed southern underground mining area.
This particular drill program will also see the company conduct all necessary test work (geotechnical, hydrogeological, methane gas and spontaneous combustion tests) required to commence an underground coal mining operation and look to expand resources.
The company will also undertake up to 9 holes for 1342 metres to target a potential open pit area. As well as another 3 holes for 1050 metres to test the extension of the resource to the North and a possible further underground mine.