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Tuesday, 09 October 12
REALM RESOURCES RECOMMENCES DRILLING AT KATINGAN RIA COAL PROJECT


COALspot.com : Realm Resources Ltd. (ASX) has announced that it has commenced work on the phase three technical programme at its Katingan Project in Central Kalimantan, Indonesia.

According to announcement, this programme, designed in conjunction with Xenith Consulting, aims to increase the size of the JORC compliant coal resource and allow for conversion of some of this resource to a JORC compliant reserve estimate and the production of a bankable feasibility study (“BFS”). In addition, the Company is conducting additional engineering studies and optimization work aimed at reducing FOB cash costs and enhancing the project’s economics.

The exploration programme commenced on the 17th of September with one medium size track mounted drill rig with HQ size capability mobilized to site, by Indonesian drilling firm Arbico, the announcement said.

The drilling has initially focused on the South Eastern quadrant of the project area, which was identified in the recently completed Project Study as the best potential mining start-up area given the low strip ratios and favorable coal quality results.

As of the 3rd of October, 554m of drilling had been completed with 467m of chip and 87m of HQ size core.

A total of 10 holes have been drilled out of the total 16 planned sites, being 5 cores and 5 chip holes. All holes have been geophysically logged.

The announcement further said that, results to date support the original model predictions with one exception. The average Main Seam borehole thickness of 4.90m is thicker than the 4.34m average in previous Indicated Resource model. The depths to the Main Seam have varied slightly from the predictions, however this will allow the structural model to be further enhanced moving forward.

The first batch of coal quality samples have been forwarded to the accredited laboratory at Banjarmarsin for testing to build on the coal quality database.

With solid progress to date of this latest field programme, the Company anticipates completion of the BFS before year-end.

About Realm
Realm’s strategy is to create shareholder value through exploration and development of bulk commodity projects, primarily in coal. In addition, the Company has platinum group metals, advanced exploration projects and an aluminum dross treatment plant in South Africa.



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