Orpheus Energy (OEG) announced that it has secured a 51% equity ownership in two additional tenements in East Kalimantan Province under its joint venture agreement with strategic alliance partner Pt Mega Coal International. B3 covers an area of 4775 hectares, has had historical geological mapping, and reported a high quality coal sample in 2007 featuring low ash (1.5%), low total moisture (8.3% ar) and an energy content of 7123 Kcal/kg. B4 covers an area of 3126 hectares, has also had historical geological mapping, and reported a high quality coal sample in 2007 featuring low ash (1.9%), low total moisture (6.5% ar) and an energy content of 7253 Kcal/kg. Samples taken in July 2011 returned calorific values at 7270, 8055, 8095 Kcal/kg (adb). Orpheus currently has an exploration target of 5-10Mt for B34 and is planning a drilling program to delineate a JORC resource, expected to commence in Q1 2012. Orpheus’s initial geological review of B3 and B4 during an extensive site visit in July 2011 identified significant coal outcrops which are expected to have an extensive strike extent. B34 is located approximately 60km west of Orpheus’s B26 projects and will ultimately be joined by a dedicated existing haul road. Coal mined out of B34 will also be transported by barge out of the same facilities near Tampang as B26 production. The joint venture provides that Orpheus pay AUD$2.2m to Mega for a 51% equity in B34.
Executive Chairman Wayne Mitchell said, “The B34 transaction is very significant as it marks the securing of Orpheus’s second Indonesian coal project under our strategic alliance with Mega, following rigorous technical and legal due diligence.
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Tags: Coal mining, mining, OEG, Orpheus Energy
