Description
Churchill’s main focus is its highly prospective thermal coal project located in the East Kutai Regency of Kalimantan, Indonesia. The Company has concluded an Exclusivity Agreement with PT Techno Coal Utama and the JORC compliant resource has been defined as 1.412 billion tonnes. Exploration and resource drilling continue along with scoping and pre-feasibility work.
Churchill has also acquired the Sendawar CBM Project in East Kalimantan, Indonesia, which is in an highly prospective area for coal bed methane. Additionally the Company acquired the South Woodie Woodie manganese project in Western Australia however due to the Company’s focus on Indonesia and the increased prospectivity of the project 80% was sold to Spitfire Resources Ltd.
Churchill's management continues to assess further opportunities in Australia and southern Asia to acquire quality projects in line with the Company's business plan. Churchill is committed to growing shareholder value by becoming a leading minerals explorer and future miner.
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In-depth Churchill Mining Proactive Investors Articles
Recent Churchill Mining news
- 24/02/2010 Churchill Mining targets completion of East Kutai feasibility review for Q2 2010
- 16/02/2010 Churchill Mining gets further vote of confidence as Indo Setubara ups stake to 7.6%
- 11/01/2010 Churchill Mining makes Caesars Report’s top 5 mining stocks for 2010 list
- 10/12/2009 Churchill Mining names Pala Investments as strategic advisor
- 26/10/2009 Churchill Mining announces East Kutai maiden reserve of 956 mln tonnes of in-situ coal
Presentations & Company Media
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Related Research & Media
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Company Statement:
Churchill’s business plan is to leverage off the growth currently being experienced in China and India and in particular their appetite for raw materials used as feedstock in their burgeoning energy and steel industries.
Churchill’s growth plan quickly accelerated in 2007-2008 following the discovery of a very large thermal coal deposit (Churchill 75% owner) in the East Kutai Regency of Kalimantan, Indonesia. To date more than 3.18 billion tonnes of coal has been drilled to JORC standard and the project area explored only represents 20% of the Company’s total land holding in the Regency.
Churchill has consequently focused its drilling to turn part of this resource into a mining reserve and to scope-out both short-term and long-term production scenarios.
Apart from its thermal coal interests, Churchill also has a significant investment in gas via its Sendawar (Churchill 70%) Coal Bed Methane project, also located in Kalimantan. Acquired in 2006, the project is sited over a large CBM basin. In 2007, Churchill, along with its minority Indonesian partner, was granted the first CBM licence awarded in Indonesia. The Company continues to conduct technical due diligence on the project and is talking with major international oil, gas and CBM companies about their possible joint venture involvement.
Churchill also retains an exposure to the manganese sector via its 28.8% shareholding in ASX-listed explorer Spitfire Resources Limited. Spitfire is exploring the South Woodie Woodie project in Western Australia, a project which covers more than 1,100 square kilometres of granted tenements and tenement applications. Spitfire also has a portfolio of thermal coal projects in Tasmania.
Churchill’s management continues to assess further opportunities in Southern Asia to acquire quality projects in line with the Company’s business plan. Churchill is committed to growing shareholder value and becoming a leading minerals explorer and future miner.
Current Operations:
East Kutai Coal Project
Background
In May 2007, Churchill reached agreement to purchase a 75% interest in the East Kutai Coal Project from PT Techno Coal Utama. This followed on from an exclusivity agreement which was signed in March 2007 and subsequent due diligence carried out by Churchill.
The original East Kutai Coal Project (EKCP) area covered an area of approximately 575km2, (made up of four blocks), situated 110 kilometres west from the main population centre of Sangatta.
In April 2008, the Company acquired a 75% interest in an additional 200km2 of coal tenements immediately abutting the western boundary of the EKCP, and in particular, adjacent to the current area of intensive drilling and resource calculation work being carried out by the Company. The newly extended East Kutai Coal Project now covers an area of approximately 775km2.
Project History
The initial project focus was intensive exploration and resource development to confirm the potential of the East Kutai Project as a discovery of medium calorific coal of world-class size.
Drilling initially commenced on 500 metre spaced centres to a depth of between 100 metres and 150 metres, rapidly defining a large north/west-south/east trending coal corridor.
Following the completion of the £10 million capital raising in November 2007, exploration was significantly accelerated with in-fill drilling commencing on 250 metre centres across a 10km by 4km high priority zone. A total programme comprising 65,000 metres of drilling was planned, with an initial objective of delineating 100 million tonnes in reserves and 400 million tonnes in resources by the end of 2008.
The new drilling programme was undertaken with a mix of open hole and core drilling, utilising three drilling rigs and 200 support personnel. The programme was managed by Jakarta-based consultants PT GMT, led by ex-pat Australian, Brett Gunter.
For further information on this project please CLICK HERE
The Sendawar Coal Bed Methane Project
Background
The Sendawar Coal Bed Methane project in East Kalimantan, Indonesia was acquired by Churchill in April 2006 after several months of due diligence, and was Churchill's first coal target.
The tenement area is located in the established coal production region of East Kalimantan now thought to contain sufficient deep resources to be a Coal Bed Methane (CBM) proposition.
In September 2007, Churchill (70%) was granted a Coal Bed Methane licence ("CBM Licence") for the project along with joint venture partner PT Ridlatama Mining Utama (30%) - the first of its kind to be granted by the Indonesian Government through direct appointment.
The CBM licence has given Churchill access to a substantial oil and gas database including seismic information and well details. This information is now being interpreted under a joint evaluation study.
Project Update
At the time of writing, Indonesia's CBM regulations have not yet been completed or issued and Churchill will only be in a position to commit to signing a PSC, subject to completion of technical due diligence, once the new regulations have been formalised and considered workable by Churchill.
To that end, Churchill, along with the major national and international energy companies targeting CBM in Indonesia, is a founding member of the Indonesian Association for Unconventional Gas and Oil (AUGI).
AUGI has recently been recognised by BPmigas, the Indonesian Government authority responsible for the CBM regulations, as the only industry body permitted an input into the drafting of the CBM regulations.
Investments
The South Woodie Woodie Manganese Project
Holding in Spitfire Resources
Given Churchill's increasing focus on its Indonesian coal and coal bed methane projects, in 2007, the Company decided to divest an 80% interest in the project to Australian company Spitfire Resources Limited ("Spitfire"). Spitfire has the option to purchase the remaining 20% equity in the project for AUD$3 million after spending AUD$1.5 million on exploration.
Spitfire successfully listed on the Australian Securities Exchange ("ASX") via a A$6 million Initial Public Offering (IPO). The transaction has allowed Churchill to focus purely on its East Kutai and Sendawar Projects in Indonesia while retaining a substantial holding stake in Spitfire.
The consideration to Churchill for the acquisition of the 80% interest in the South Woodie Woodie Project was 25 million new ordinary shares in Spitfire, making Churchill Spitfire's largest shareholder (28.8%).
Churchill is also entitled to retain a manganese production royalty should a mine be developed. The production royalty is price indexed so as to ensure Churchill retains substantial leverage to any future mining cash flow.
Visit the Spitfire Resources website
Management
THE DIRECTORS
David Quinlivan - Chairman
Mr Quinlivan is a Mining Engineer and Principal of Borden Mining Services. With almost 30 years experience on projects throughout the world, Mr Quinlivan is familiar with all aspects of resources developments from grass roots exploration through to bankable feasibility reviews and detailed mining programs. He assisted the Administrators with the operation and corporate reconstruction of Sons of Gwalia Ltd. Mr Quinlivan is currently Chief Executive Officer of Mt Gibson Iron Limited a mid-tier iron ore producer in Australia.
Mr Quinlivan is a Fellow of the Australian Institute of Mining and Metallurgy, Member of the Australian Institute of Arbitrators & Mediators Australia and an Associate of the Financial Services Institute of Australia . He is also a non-executive director of ASX-listed gold explorer Avoca Resources Ltd. Mr Quinlivan is responsible for board performance and bringing technical excellence to Churchill Mining Plc.
Paul Mazak - Managing Director
Mr Mazak is a business development specialist and Managing Director of Hastings and Associates Pty Ltd for the past 18 years. Responsible for leading and managing financial, investment, consulting and governmental teams across the globe, Mr Mazak has an intimate knowledge of business practice in many parts of Asia, Africa and Europe . Due to his in-depth knowledge of the mining business, Mr Mazak specialises in securing projects for listed companies. In this regard, he was responsible for the creation and management of the successfully bidding, B.Vijakumar Diamond mining consortium, which sort to develop the world-class Madhya Pradesh diamond property in India. In addition, Mr Mazak sourced the mine assets and was part of the reconstruction team of ASX-listed Majestic Resources NL, where he served as a director between 2001 and 2003. Mr Mazak has been Managing Director of Churchill Mining Plc since 2005 and is responsible for project procurement of the coal and gas assets in Indonesia for the company. In addition he serves in an honorary capacity to Dr Alwi Shihab, the Indonesian President's Envoy to the Middle East, in regard to mining investment into Indonesia .
Faroek Basrewan - Non-Executive Director
Mr Basrewan specialises in dealing with the various level of Indonesian central, provincial and local government. A graduate in law from Indonesian Christian University , Mr Basrewan has had a long and distinguished career in general mediation and dispute resolution, government and regulatory relations within Indonesia . Mr Basrewan has distinguished himself in service to Indonesia as Special Staff to the Minister of Defence and has carried out various assignments for the Indonesian Government over many years. He was the Special Assistant to the first democratically elected Indonesian President, Abdul Rachman Wahid (Gustur). He is currently Special Advisor and Special Assistant to Dr Alwi Shihab, the Indonesia President's Envoy to the Middle East.
Jan Castro - Non Executive Director
Mr. Castro is the Managing Director of Pala Investments AG, the exclusive advisor to a US$ 1.0 billion investment company focused on the mining and natural resources sector. As a long-term partner, Pala leverages its extensive mining and natural resources sector experience to provide strategic advice and innovative financing solutions. Prior to founding Pala in July 2006, Mr. Castro was Senior Vice President of Investments and Corporate Affairs for Mechel OAO, a NYSE-listed company and one of Russia's largest coal companies, where his primary responsibilities covered mergers and acquisitions, non-core asset disposals and investor and public relations. He was also responsible for Mechel's IPO in 2004. Mr. Castro currently serves on the Boards of Anatolia Minerals Development Ltd, Avoca Resources Limited, Gemcom Software International Inc., Norcast Castings Company Limited, Dumas Contracting Ltd and Coalcorp Mining Inc.
Major Shareholders
| Shareholders | Number of Ordinary Shares | % |
|---|---|---|
| Vidacos Nominees Ltd | 25,706,326 | 31.96% |
| Lynchwood Nominees Ltd | 6,350,000 | 7.90% |
| Goldman Sachs Securities Nominees Ltd | 3,584,102 | 4.46% |
| Dartington Portfolio Nominees Limited | 3,104,900 | 3.86% |
| Hanover Nominees Ltd | 2,994,744 | 3.72% |
| BBHISL Nominees Ltd | 2,850,000 | 3.54% |
Contact Information
Registered Office
55 Gower Street
London WC1E 6HQ
Australian Office
Suite 1, 346 Barker Road, Subiaco
Western Australia 6008
Phone: +61 (08) 6382 3737
Fax: +61 (08) 6382 3777
Corporate Information
Nominated Advisor
Astaire Securities Plc
30 Old Broad Street
London EC2N 1HT
Tel: +44 (0) 207 448 4400
Broker
Midas Investment Management Service
2nd Floor, Arthur House
Chorlton Street
Manchester , M1 3FH
Tel: +44 (0) 870 121 1445