As part of a review of the drilling and exploration program at Churchill Mining’s East Kutai Coal Project in Indonesia, the overall project initial coal reserve target has been lifted by 50% to 150 million tonnes.

The company, guided by its coal-competent advisors, is deploying two of its rigs to concentrate on an intensive drilling program covering an area about 6km by 2km, which has the potential to form part of the project’s first mine-pit.

The mine-pit target drilling is in an area that includes part of the new blocks added to the East Kutai project in April. The 6200m of drilling in the target area is expected to be completed in three months, enabling calculations on the mining reserve to be brought forward.

The company’s drilling program is well ahead in terms of metres-drilled versus results-gained with 9000 metres drilled to date against the annual plan to drill 65,000 metres.

A third rig continues to drill at the southern extension of the current drilling area, expanding the coal resource and determining potential areas for any further mine-pits. A fourth rig is expected to be added in due course.

Churchill's managing director Paul Mazak says: “Churchill is still ahead of schedule and ahead of budget in its exploration program. The company is focused on getting to a mining reserve as quickly as possible so that we can move to mine construction and production.”

Trans Tek Engineering is completing the general scoping study on the project with emphasis on the transportation and infrastructure requirements from mine-site to port. The results of the study are expected to be completed at the end of the month and no technical hurdles have arisen that would prevent a coal mine from being developed.

www.churchillmining.com