Cloudified Holdings Limited Regulatory News (CHL)

17 Oct 2006 10:29

Churchill Mining plc17 October 2006 17 October, 2006 CHURCHILL MINING PLC ("Churchill" or "the Company") Sendawar Coal Project - Update Highlights: • Drilling teams deployed to start resource drilling at primary coal targets • Initial pilot drilling programme and appraisal work of secondary areas completed • Soft Coking Coal target area identified, with further work to continue The Directors of Churchill Mining Plc (AIM: CHL) announce that the Company hasnow deployed its two drilling rigs to the primary coal resource targets in thenorthern and central areas of the main tenements at the Sendawar Coal Project inKalimantan. The Company is looking to further accelerate the drilling programme bycontracting a minimum of another three drilling rigs with the aim to outline asquickly as possible an initial mining reserve of five million tonnes, as part ofan overall target of a first resource of 200 million tonnes in the primarytarget area. To this end, Churchill has brought in another three senior geologists and sixgeological support staff, along with another 12 field staff, to help step up theprogramme. Churchill has just completed the initial pilot phase drilling programme andappraisal work at the south east of the main tenement area and on the tenementknown as AAM, which is separate and to the east of the main tenement area. Thiswork on secondary areas was undertaken at this time and ahead of the primarycoal resource targets, so as to take advantage of the dry season. Due to the nature of the exploration techniques used when coal outcrops andother coal indications have not yet been identified, dry weather is required andthus this part of the Company's programme was completed first. (Dry weatherwill not be of such critical importance in the primary coal resource targets inthe northern and central areas of the main tenements, as a bank of coal targetshas already been identified). A total of 1,412 metres were drilled for the initial pilot phase drillingprogramme, comprising 431 metres of open hole and 981 metres of coring. Theseholes were all drilled in the southern and eastern areas of the AAM tenement, totest the continuation of a number of high-quality coal seams located during theprogramme on the eastern boundary of the tenement. Results confirm that the AAMblock remains highly prospective for semi-soft coking coal. Two samples were analysed from coal outcrops during the month (see table below). One sample was taken from the eastern lease boundary of AAM whilst the otherwas collected from Sungai Gusi in the AAM block. The results are encouragingand confirm the presence of high quality coal in the AAM area. In particular, the samples are notable for their high calorific value but lowsulphur content: Total Moisture Inherent Ash Volatile Matter Fixed Carbon Total Sulphur Kcal/kg Moisture As Received Air Dried Basis (ADB) ADB % % % % % %Sample 1 4.00 1.97 2.31 38.58 57.14 0.92 8,209Sample 2 7.91 5.70 10.68 27.49 56.13 0.43 6,433 An exploration team will remain in the AAM block to continue mapping alongstrike from the areas tested by pilot drilling and, by utilizing this data, willcontinue to expand the geological model of the coal occurrences in the area. Inparticular, the effects of faulting within the prospective sediment formationare yet to be fully determined and this will be critical in optimizing futuredrilling programmes. Teams have only covered 25% of the AAM block to date anddrilling will recommence in the block when the geological coverage has beencompleted and the geological model confirmed. Notwithstanding that Churchill is accelerating its drilling programme, theCompany remains well within in its budgetary requirements. ENDS Enquiries: Churchill Mining Plc Corporate Synergy Parkgreen CommunicationsPaul Mazak/ James Hamilton Olly Cairns Brendan McNamara+61 (0)8 9388 0377 +44 (0) 20 7448 4400 +44 (0) 20 7493 3713 paul.mazak@churchillmining.comjames.hamilton@churchillmining.com Notes to editors Churchill Mining Plc listed on AIM in April 2005. It has two projects and inearly 2006 raised GBP5.25 million to acquire and explore the Sendawar coalproject. 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. 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 via barge via the Mahakam River to the port of Samarinda. TheSendawar project is located approximately 50km from the Mahakam River. In accordance with the AIM Guidelines, Mr Brett Gunter, of PT GMT Services, is the qualified person that has reviewed the technical information contained in this press release. This information is provided by RNS The company news service from the London Stock Exchange