Pan Asia Corporation has announced technical and financial feasibility of its Transcoal Minergy Underground Coal Mine Project in Indonesia following the completion of the base case feasibility study.
The study indicated that the total expenditure to develop the mine project is $179m. Based on the assessment of PT Kopex Mining Contractors, the project has a potential to deliver sellable coal of 1.5 million tones per annum over a 15 year period.
After drilling 55 boreholes vertically, minimum thickness of 0.20m coal is reported in the model while maximum thickness of parting included in seam thickness is 0.10m. Pan Asia chief executive officer Alan Hopkins said, “This is a major milestone for the Company with our flagship project receiving such a positive independent review”.
Exploration work, including infill drilling, currently underway, to the north will help refine the mine plan and could significantly extend the current mine life, the company said. Total sellable tonnes currently stands at 18 million tones but is expected to be about 22.5 million tones after current infill drilling.