Cloudified Holdings Limited Regulatory News (CHL)

25 Jul 2007 08:20

Churchill Mining plc25 July 2007 CHURCHILL MINING PLC ("Churchill" or "the Company") Churchill Adds Potential New Blocks to East Kutai Coal Project in Kalimantan, Indonesia Highlights: • 153sq.km southern extension to the East Kutai project investigated • Large tonnage in-situ coal potential identified • Redesigned drilling programme planned to test new ground As part of its due diligence on the East Kutai coal project in Kalimantan,Churchill has focused its recent exploration work on a 153 square kilometresouthern extension to its ground package. The extension, offered to the Company under the sale and purchase agreement itstruck in May this year with PT Techno Coal Utama Prima, is contiguous toChurchill's existing ground position and potentially lifts the total projectarea to 552 square kilometres. Initial technical due diligence and geological reconnaissance of the potentialnew area has located 46 coal seam outcrops ranging in thickness of between lessthan 2 metres and more than 20 metres. The ease of discovery of the coaloutcrops highlights the exceptional coal prospectivity of the areas beinginvestigated. In outcrop, the seams are sub-bituminous in nature and structural mapping inconjunction with satellite imagery and geological interpretations havedetermined the outcrops are extensions of the previously drilled coal seams atthe East Kutai project, where significant intercepts of coal were recorded froman initial 21 drill hole verification programme conducted by the Company. The location of the outcrops and the thickness of the seams in the new tenementareas are consistent with data reported by previous investigations in the areaconducted by others, including a report compiled by the coal geologicalconsultants, PT Rimineco Geological and Mining Services. Fieldwork and data reviews by PT Rimineco resulted in a calculation of a large,in-situ coal resource within one section of the coal-bearing stratigraphy(contained in the area under investigation). However, the methodology and basisof the calculation are not yet to a recognised international standard andChurchill maintains that a comprehensive programme of JORC-compliant drilling isneeded to verify the PT Rimineco work. Churchill is consequently redesigning its drilling programme to test thesouthern extension. However, on advice from the Company's geological andtechnical team, Churchill has requested that its drilling contractors substitutethe current drilling rigs for bigger rigs and is currently working with thecontractor on delivery dates for 3 new rigs. The Company expects any possibletime lost in the changeover to be quickly regained due to the faster drillingrates of the more powerful rigs. In May 2007, Churchill entered into a formal sale and purchase agreement with PTTechno Coal Utama Prima, to buy 75% of the East Kutai Coal project, subject tostandard due diligence. Under the terms of the agreement, Churchill has made aninitial payment of US$250,000. Churchill will pay a maximum of an additionalUS$750,000 for the project, which includes any tenement expansion to the projectcurrently being considered by the Company, including the two new extensionsreferred to herein. No Churchill shares shall be issued as part of the consideration. The Company maintains an active sourcing programme for coal exploration andmining opportunities in both Indonesia and elsewhere and will continue toexamine more projects throughout 2007. ENDS Enquiries: Churchill Mining Plc Blue Oar Securities Plc Parkgreen CommunicationsPaul Mazak/James Hamilton Olly Cairns Justine Howarth+61 (0) 8 9388 0377 +61(0) 409101551 +44 (0) 20 7851 7480 paul.mazak@churchillmining.comjames.hamilton@churchillmining.com In accordance with the AIM Guidelines for Mining Companies, Mr Brett Gunter, ofPT GMT Services, is the qualified person that has reviewed the technicalinformation contained in this 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 The South Woodie Woodie project covers approximately 490 square kilometres inthe East Pilbara region of Western Australia. Owned via Churchill Mining'swholly-owned subsidiary, Planet Mining Pty Ltd, the project sits approximately400km southeast of Port Hedland in the highly prospective Pilbara manganeseprovince. Churchill owns the project 100%. To date much of the project areahas never been explored due to the presence of surface cover. Churchill hasconducted a versatile time-domain electromagnetic (VTEM) geophysics survey todefine targets for drilling. VTEM is a leading heli-borne technology that candetect conductive mineralisation and related structures to depths of 400m belowsurface. Sendawar The Sendawar project in Kalimantan, Indonesia, covers more than 1,000 squarekilometres of prospective ground and lies in close proximity to two operatingopen-cut mines: Thai miner Banpu's newly commissioned Trubaindo operation, whichwill shortly be producing at a rate of approximately six million tonnes perannum (tpa); and the privately-owned Gunung Bayan mine which has been operatingsince 1998 and produces approximately 3.4 million tpa. Coal from these mines istransported by barge via the Mahakam River to the port of Samarinda. TheSendawar project is located approximately 50km from the Mahakam River. East Kutai 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 agreementwhich will see it purchase a 75% interest in the Project. This information is provided by RNS The company news service from the London Stock Exchange