Churchill said the Sendawar project represents a large land holding in a coal province where coal production is currently growing at approximately 20% per annum.
“Regional mapping has indicated favourable structural positions located within the project area, and initial geological mapping carried out to date over only a part of the project area has located 24 coal outcrops within the project area,” the company said.
Given its location and size, the potential of the Sendawar project to produce a substantial resource is considered high.
Churchill said coal with a calorific value above 6300Kcal/kg is deemed to be high calorific value thermal coal with a current potential sale value of approximately $US40 per tonne free on board (FOB), as opposed to low calorific thermal coal (
The company submitted two batches of coal for sampling as part of its program to understand structural controls in the area.
“Churchill now has 15 local and expatriate geologists at site exploring the northern and eastern boundaries of its ground position, which in total covers more than 1000 square kilometres,” the company said.
“These field operatives are being logistically supported by a freshly established base in the town of Melak with ultimate coordination coming from the company’s newly created office in Jakarta.”
Churchill said the project is highly likely to host high quality thermal coal because of its location in regards to producing coal deposits.
Sendawar’s northern ground abuts the privately owned Gunung Bayan mine, which has been operating since 1998 and produces approximately 3.4 million tonnes per annum of quality thermal coal. Gunung Bayan’s resource position is greater than 300Mt.
Churchill Mining has two coal mining projects and in 2006 raised ₤5.25 million ($US9.55 million) to acquire and explore the Sendawar project.
Churchill’s second project, South Woodie Woodie, covers approximately 490sq.km in the East Pilbara region of Western Australia. The company recently completed a 6600 line kilometre airborne magnetics program at South Woodie Woodie and will drill its first target area, Enacheddong Creek, in early July.
