Orpheus Energy has announced a JORC-compliant 3.45 million tonne resource at its Kintap ADK mine in Indonesia’s South Kalimantan, confirming up to five years of production at the site.
The JORC resource is based on results from 24 core holes drilled by the company, as well as 24 historical exploration holes over the existing mining area of about 100 hectares. Orpheus says the resource is likely to increase once drilling is completed over the remaining area of the tenement.
Orpheus’ 1866 metre exploration program finished in December last year and confirmed all the seven coal seams within the site are mineable.
The company’s executive chairman Wayne Mitchell says the resource estimate is a significant milestone. “The ADK project is producing with favourable mining properties and has existing infrastructure in place, thus the resource report confirming our tonnage for entering into longer-term offtake agreements with end users for the next five years is particularly encouraging.”
The ADK coal mine has been in production since April 2011, with Orpheus acquiring a 50% interest in the project in March 2012 and commencing a joint venture with PT Mega Coal. The project’s seven coal seams range in thickness from 2 metres to 24 metres. Laboratory analysis of the coal has confirmed a highly saleable ROM coal suitable for the domestic Indian and Chinese markets, with low ash, low sulphur and calorific value suitable for power station consumption.