Cloudified Holdings Limited Regulatory News (CHL)

17 Oct 2007 07:01

Churchill Mining plc17 October 2007 17 October 2007 CHURCHILL MINING PLC ("Churchill" or "the Company") Drilling Update - East Kutai Coal Project, Kalimantan, Indonesia Highlights: • 3,891 metres of drilling completed to date • Drilling intercepting up to 9 coal seams per hole • First coal volume calculations expected in January 2008 Exploration and drilling continues successfully at Churchill's East Kutai CoalProject (EKCP) - Kalimantan, Indonesia. Total metres drilled since the commencement of the programme is 3,891m. To date,36 holes have been drilled with the most recent bore holes, having a spacing ofbetween 750m and 1000m between centres. Current target seams for a JORCcompliant resource are all dipping at less than 10 degrees and drilling rateswill increase when infill block-drilling begins. To date over 250 coal outcrops have been mapped on the EKCP with coalthicknesses ranging up to more than 20 metres in outcrop. Mapping will continueas the drilling proceeds to assist in seam correlations and define furtherextensions to the coal-bearing stratigraphy. (go to http://www.churchillmining.com/pdf/map.pdf for exploration map) The average coal quality parameters to date are as follows (on an ADB basis): Inherent Moisture Ash Volatile Matter Fixed Carbon Total Sulphur Calorific Value (%) (%) (%) (%) (%) (Kcal/kg) 16.55 4.50 43.50 35.00 0.17 5,300 The Company believes that based on current project findings, it does not appearthat the coal will require drying before it can be exported. Churchill expects the first coal volume calculations in January 2008 and willprovide a more detailed report to the market at that time. All exploration camps and facilities are in place and the Company now has afield team of over 100 personnel, including; drilling contractor staff, 12geologists, community liaison and local development officers, logistical supportand locally sourced non-skilled personnel working on the project. In May 2007, Churchill entered into a formal sales agreement with PT Techno CoalUtama Prima, to buy 75% of the project. Churchill has now fully completed thetransaction and has taken control of the EKCP for the initial payment ofUS$250,000 and a final payment of US$750,000, which included the tenementexpansion for the areas known as Block RTM and Block RTP. No Churchill shares were issued as part of the consideration for the EKCP. The Company maintains an active sourcing programme for coal exploration andmining opportunities in both Indonesia and elsewhere and will continue toexamine more projects throughout 2008. ENDS Enquiries: Churchill Mining Plc Blue Oar Securities Parkgreen CommunicationsPaul Mazak/ James Hamilton Romil Patel Justine Howarth+61 (0)8 9388 0377 +44(0)20 7448 4000 +44 (0) 20 7493 3713 paul.mazak@churchillmining.com Olly Cairnsjames.hamilton@churchillmining.com +61 (0)8 6430 1631 In accordance with the AIM Guidelines, Mr Brett Gunter, of PT GMT Services, isthe qualified person that has reviewed the technical information contained inthis release. Notes to editors Churchill Mining Plc listed on AIM in April 2005. Its principle operations arethe South Woodie Woodie manganese project in Australia and the Sendawar and EastKutai coal projects in Indonesia. South Woodie Woodie Given the increased prospectivity of South Woodie Woodie, and Churchill'sincreasing focus on its Indonesian coal and coal bed methane projects, theCompany sold 80% of the project to Australian company Spitfire Resources Limited("Spitfire"). Spitfire, which plans to list on the ASX, will have the option topurchase the remaining equity in the project after spending AUD$1.5 million onexploration. (See announcement 4 October 2007) The South Woodie Woodie project covers approximately 490 square kilometres inthe East Pilbara region of Western Australia, and sits approximately 400kmsoutheast of Port Hedland in the highly prospective Pilbara manganese province.Churchill has recently completed a heliborne versatile time-domainelectromagnetic geophysics programme and interpretive work, and a follow updipole-dipole IP survey which identified multiple drill targets. Sendawar - CBM and Coal The Sendawar Coal and CBM project in Kalimantan, Indonesia, covers more than 800square kilometres of prospective ground and lies in close proximity to twooperating open-cut coal mines. The project is located approximately 50km fromthe Mahakam River. During Churchill's coal exploration programme, data collected during geophysicaland resitivity work, along with data collected from previous oil and gasexploration in the area; indicated that the area was highly prospective for CoalBed Methane. Churchill (70% of the CBM project) along with its Indonesianpartner RMU (30% of the CBM project) applied for and were granted Indonesia'sfirst CBM JEA license in September 2007. The CBM project has the potential tohost Gas-in-Place of 5.6 TCF. Churchill is currently conducting further studieson the CBM project before starting detailed field work. East Kutai Coal Project Churchill announced on 15 February 2007 that it had signed an ExclusivityAgreement with PT Techno Coal Utama to enable it to conduct due diligence workon the thermal coal project. In May 2007 Churchill announced a sales agreementhad been entered into to purchase a 75% interest in the Project, which has nowbeen finalised. Exploration and resource drilling continue at the project. This information is provided by RNS The company news service from the London Stock Exchange