KAL Thermal Coal Resource Increased to 248 Million Tonnes
December 01 2008 - 6:00AM
PR Newswire (US)
Newly Issued JORC Report Increases Tonnage, Improves Classification
JAKARTA, Indonesia, Dec. 1 /PRNewswire-FirstCall/ -- KAL Energy,
Inc. (Nasdaq OTC Bulletin Board: KALG), a thermal coal explorer and
developer, today announced the publication of an updated JORC
Compliant Resource Statement on its Graha Panca Karsa concession
(Block 24) in East Kalimantan, Indonesia. Highlights of the report
include: -- Estimate of total resource has increased to 248 million
tonnes (Mt) from the previously reported 204 Mt. -- 141 Mt has been
upgraded to Indicated Resource, with the remaining 107 Mt in the
Inferred category. -- More than 142 Mt (57%) is at depths of less
than 60 meters, which should result in a high conversion rate from
Resources to Reserves. -- Seam dips are shallow -- on the order of
5 to 15 degrees. -- The coal is sub-bituminous, has low ash and
very low sulfur content, and is of medium calorific value. -- The
Graha seam thickness ranges from 0.5 meters to 8.8 meters, with an
average of 5.0 meters across the concession. -- Three other seams
have been identified, but are not included in the resource estimate
due to insufficient data on seam geometry and quality. William
Bloking, Executive Chairman and President of KAL Energy, Inc. said,
"We are delighted to report not only a significant increase in the
overall size of the Graha resource, but also that about 60 percent
of the resource has been moved from the inferred category to the
indicated category. Once we receive our exploration license
extension and the necessary Forestry Department permit, we plan to
conduct Phase II of our drilling program on Block 24 in order to
obtain the quality and other data necessary to move resources into
the reserves category, and to update project economics and mining
plans." Attila Kovago, KAL Energy's VP of Exploration, said, "The
new JORC compliant Resource Statement is based on additional
drilling data from 2007 that was not incorporated into the initial
JORC Statement, a highly accurate Digital Terrain Model derived
from an airborne laser topography (LIDAR) survey carried out in
October 2008, and intensive geological remodeling of the deposit.
The planned Stage 2 drilling program has potential to further
increase tonnage by determining if any of the additional seams can
be included, and by providing additional coverage of the concession
area." "In parallel with our Phase II drilling campaign, we are
also shifting our focus to converting the exploration license into
an exploitation license. Currently we anticipate lodging our
application before the end of the calendar year in support of our
goal of receiving the exploitation license by the end of May 2009,"
concluded Mr. Bloking. To request a copy of the newly issued JORC
Compliant Resource Statement, e-mail KAL Energy at . About KAL
Energy, Inc. KAL Energy, Inc, through its wholly owned subsidiary
of Thatcher Mining Pte. Ltd., has economic rights to two coal
concessions near the Mahakam River in East Kalimantan, Indonesia,
one of which has a JORC Compliant resource of 248 million metric
tons. KAL Energy has commenced exploration programs and feasibility
studies on these concessions to determine their commercial
viability. The Company intends to develop and produce coal from
these concessions in a socially, environmentally and economically
sustainable manner, as guided by the Equator principles. End
markets for KAL's thermal coal product include local Indonesian
consumers as well as export markets in India, China, North Asia,
and Southeast Asia. KAL Energy is incorporated in the State of
Delaware and is publicly traded on the NASDAQ OTCBB. For further
information regarding KAL Energy, Inc., please visit the website at
http://www.kalenergyinc.com/. Contact: William Bloking Executive
Chairman and President KAL Energy, Inc. Email: Lucia Domville -
Investor Relations Grayling Global T: +1 (646) 284-9416 E: Ivette
Almeida - Media Relations Grayling Global T: +1 (646) 284-9455 E:
DATASOURCE: KAL Energy, Inc. CONTACT: William Bloking, Executive
Chairman and President, KAL Energy, Inc., ; Lucia Domville,
Investor Relations, +1-646-284-9416, or , Ivette Almeida, Media
Relations, +1-646-284-9455, or , both of Grayling Global Web Site:
http://www.kalenergyinc.com/
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