Churchill Mining has now defined 1.412 billion tonnes of JORC compliant resource in various categories at the East Kutai Coal Project in East Kalimantan, Indonesia.

The resource has exceeded the company’s initial 2008 target of 500 million tonnes of thermal coal by 140%.

The update was derived from a total drilling program of 19,662 metres, including 6874 metres open hole and 12,788 metres coring in 131 drill hole locations.

The program focused on the northern and southern areas of the RTM block, one of four target blocks totalling 35,000 hectares. A small portion of the resource is also derived from along the edge of the new Investama Resources block to the west of RTM.

Drilling completed to date represents only 20% of the total coal target area.

Churchill has a minimum coal reserve target of 150 million tonnes and is aiming to bring East Kutai into production by the end of 2009.

The updated estimate comprises measured resources of 118 million tonnes, up from 44 million, indicated resources of 322 million tonnes, up from 73 million, and inferred resources of 972 million tonnes, up from 133 million.

Coal quality to date is defined as medium calorific with low sulphur and ash content.

The following criteria were used to define the resource classification:

Drill holes that were geophysically logged and sampled were considered as valid points of observation for resource calculations.

Only drill holes that have valid survey collars (not GPS-survey) were used, i.e. those drill holes not surveyed were not considered at this stage.

Additionally open holes which were verified as intersecting relevant seams based upon the geophysical logs were also used to ensure continuity of the resource calculation along the entire strike length of the deposit.

Only drill holes located within the area that has topographical survey data were considered for measured and indicated resource calculations, i.e. sample holes located outside this survey area were only used for inferred resource calculations. Holes that have not been surveyed and/or are located outside the area that has been topographically surveyed may be used at a later date for measured and indicated resource calculations.

Churchill Mining managing director Paul Mazak says: “SMG Consultants have done a superb job modelling huge amounts of data from the field. Such significant resource numbers reaffirm the company’s confidence in the shear potential size of this project and with only 20% of the coal target area drilled to date, there is still a massive amount of upside at East Kutai.

“Further drilling and exploration work should move much of the current resource into higher level categories and toward the minimum 150 million tonnes mining reserve that the company is targeting.”

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