Pan Asia Corporation (ASX: PZC) aims to be a major supplier of key resources into the expanding Asian markets. It has a mix of thermal coal assets in Indonesia including a flagship Pre Development project that has a JORC resource in South Kalimantan (TCM).
Pan Asia Corporation (ASX: PZC) has delivered its third coal resource statement for the TCM Coal Project in South Kalimantan which shows an increase in the JORC Resource to 128.8 million tonnes.
The latest resource update marks a 12% increase over the previous 114.6 million tonne resource.
Further upside is the increase in Measured Resources to 50.2 million tonnes, compared to the October Resource of 35.6 million tonnes.
The Indicated Resource increased to 38.1 million tonnes from 35.1 million tonnes previously.
Pan Asia has now committed to an exploration target of 200 to 220 million tonnes of 6,500 to 6,800 kilocalorie coal for the TCM project.
Indicating the potential to achieve this, the current 128.8 million tonne resource is based on drilling only part of the concession.
Alan Hopkins, chief executive officer, said, “The positive results keep coming on TCM and we now look forward to completing the current drilling in the north to see just how big a resource we can build here.”
To achieve this, Pan Asia is drilling at least a further six boreholes to complete the current drilling program.
In late March the company confirmed the continuity of the same coal seams from the TCM South Deposit into the north of the concession.
Four recent exploratory drill holes extended 1.5 kilometres north from the previously drilled limit of the TCM South Deposit and remain open for another 4 kilometres to the north.
Hopkins told Proactive Investors previously the discovery could effectively double the existing 114.6 million tonne Resource, as well as the mine life.
“The extra tonnes could double the mine life and this would benefit net present value significantly,” he said.
Kopex US$1m commitment
The recent upgrade to the TCM Resource was undertaken by leading coal industry group Kopex Mining Contractors.
Late last year Kopex agreed to step up its commitment to the TCM Project with an additional US$1 million in funding to cover the costs of an expanded drilling program.
The significance of this is that the TCM Project is now fully funded through to the completion of the final Feasibility Study.
Kopex’s total commitment to date towards the drilling program now stands at around US$1.6 million.
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