Oracle Coalfields PLC (PLUS:ORCP) said the group’s Thar coalfield project in Block VI, Pakistan’s Sindh Province, has not been affected by the devastating floods in the country.
In a statement prepared for the company’s AGM today, chairman Shahrukh Khan said the project site is more than 250 kilometres east of the swollen Indus River. “Access to site is good and we do not expect the floods to hinder our work programme, which is already underway.
"We successfully raised just over £1.1 million via a placing in June 2010 which provides the additional working capital for the business to complete the Bankable Feasibility Study (BFS) on its flagship project.”
Local contractors have been appointed for the hydrogeology, geotechnical and sub-crop drilling and shall work under the supervision of international consultants of repute, the chairman said.
Block VI hosts a JORC resource of 1.4 billion tonnes of lignite coal including 371 million tonnes in the proven reserve category. Oracle is targeting to open an open pit mine in 2011.
The company has Memorandums of Understanding (MOU) with both the Karachi Electricity Supply Co and Lucky Cement Ltd.
The MOU with Lucky Cement is aimed at giving Oracle early cashflow by supplying Lucky Cement with domestic coal.