It is reported that the successful completion of due diligence will see Kangaroo Resources complete acquisition of its five outstanding Indonesian coal projects including the high quality Kubah Indah Coking Coal Project.
Kangaroo announced the acquisition of the projects in November 2009 significantly expanding its existing coal portfolio in East Kalimantan. Completion of due diligence clears the way for drilling to begin at Kubah Indah where the company has an exploration target ranging from 100 million tonnes to 140 million tonnes of coking coal.
This drilling program will be conducted in parallel with the ongoing ramp-up of production at Kangaroo other Indonesian operations. The completion of due diligence on the Kubah Indah, Jawana, Borami, MBK and BP coal projects marks another milestone in Kangaroo growth path to become a significant Indonesian coal producer.
It recently secured an initial export sales contract with a large Chinese energy company, Guandong Yudean Farnon Investment, which involves the provision of three trial shipments containing a total of 150,000 tonnes of coal over a two-month period. Upon successful completion of these shipments, Kangaroo expects to extend this agreement to cover additional tonnages. Kubah Indah forms a significant component of Kangaroo’s production growth strategy in Indonesia with extensive historical drilling supporting the potential to delineate a significant coking coal resource.
The company is confident it can delineate a JORC-compliant resource for the project during 2010, providing a foundation to convert this to JORC-compliant reserve status. It has received an exploration licence for the first three concessions relating to Kubah Indah which will be considered the first phase of the overall project. This allows Kangaroo to begin a drilling program with the aim of delineating an initial JORC-compliant resource estimate during the next 3 to 6 months.
(Sourced from The Asia Miner)
Sunday, June 27, 2010
Kangaroo Resources completes due diligence on Kubah Indah coking coal project
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