Churchill Mining (AIM: CHL), in a move widely anticipated by close followers of the company, announced that it had increased its overall coal reserve target from 100 million tonnes to 150 million tonnes at its East Kutai Thermal Coal Project in Indonesia. The increase in the size of the mining reserve target has been driven by solid drilling results from the project to date.
Two drill rigs will now concentrate on a 6 kilometre by 2 kilometres area in order to bring forward the projected date for an initial mining reserve. A third rig will continue drilling on the southern extension of the current coal resource, and a fourth rig is due on site "in due course".
Churchill expects to have an initial scoping study, which will look at infrastructure and transportation requirements, at the end of June.
"Churchill is still ahead of schedule and ahead of budget in its exploration programme. The Company is very focused on getting to a mining reserve as quickly as possible so that we can move to mine construction and production" said Paul G. Mazak, MD of Churchill Mining.