Cloudified Holdings Limited Regulatory News (CHL)

14 Apr 2008 07:00

Churchill Mining plc14 April 2008 14th April 2008 CHURCHILL MINING PLC ("Churchill" or "the Company") First JORC calculation of 250 Mt coal resources exceeds Q1 target by 150% at the East Kutai Coal Project, Indonesia Churchill Mining Plc announces that the company's initial target of 100 Mt ofcoal in various categories of JORC compliant resource at East Kutai Coal Project("EKCP"), has been exceeded by 150%, with total coal resources to date being 250million tonnes ("Mt"). Churchill's EKCP drilling and exploration data was modeled by SMG Consultantsunder the direction of Senior Geologist, Mr. Stephen Barber (B.Sc.Hons -University of Queensland - Member of AusIMM) and an initial JORC resourcecalculated, a summary of which appears below. An initial resource of 250Mt was calculated for EKCP, comprising of: - Measured Resource of 44Mt - Indicated resource of 73Mt - Inferred resource of 133Mt The following criteria were used to define the resource classification of theEast Kutai Coal Project in East Kalimantan, Indonesia. • Drill holes that were geophysically logged and sampled were considered as valid points of observation for resource calculations. • Only drill holes that have valid survey collars (not GPS-survey) were used, i.e. those drill holes not surveyed were not considered at this stage. • Additionally open holes which were verified as intersecting relevant seams based upon the geophysical logs were also used to ensure continuity of the resource calculation along the entire strike length of the deposit. • Division of the resources into Measured, Indicated and Inferred status was undertaken. • The following resource dimensions were used: • Measured - 250m radius circular polygons around points of observation • Indicated - 500m radius circular polygon around points of observation • Inferred - 1,000m radius circular polygons around points of observation • Only drill holes located within the area that has topographical survey data were considered for measured and indicated resource calculations, i.e. sample holes located outside this survey area were only used for inferred resource calculations. • Note - those holes that currently have not been surveyed and/ or are located outside the area that has been topographically surveyed may be used at a later date for measured and indicated resource calculations. Commenting on the results Paul Mazak, Managing Director of Churchill Miningsaid: "The results speak for themselves. Such a significant early stageresource number reaffirms the Company's confidence in the shear potential sizeof this project. Further drilling and exploration work should move much of thecurrent resource categories into higher level categories and toward the 100mtmining reserve that the company is targeting". ENDS JORC STATEMENT This resource statement completed during April 2008 has been prepared inaccordance with the JORC Code. The information in this statement relates to Coal Resources of the East KutaiCoal Project and is based on information complied by Stephen Barber, who is aMember of the Australasian Institute of Mining and Metallurgy. Stephen Barber isemployed as a Senior Geologist by SMG Consultants Pty Ltd. Stephen Barber hassufficient experience which is relevant to the style of mineralization and typeof deposit under consideration and to the activity which he is undertaking toqualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves". StephenBarber has over 8 years experience in exploration and mining of coal deposits. In accordance with the AIM Guidelines, Mr Stephen Barker of SMG Consultants, isthe qualified person that has reviewed the technical information contained inthis release. Enquiries: Churchill Mining Plc Blue Oar Securities Parkgreen Communications Managing Director - Paul G. Mazak Romil Patel Justine Howarth / Ana Ribeiro +62 81510539186 / + 62 21 39832398 +44(0)20 7448 4000 +44 (0) 20 7851 7480 paul.mazak@churchillmining.com Olly Cairns +61 (0)8 6430 1631 Notes to editors Churchill Mining Plc listed on AIM in April 2005. East Kutai Coal Project In May 2007 Churchill announced a sales agreement had been entered into topurchase a 75% interest in the East Kutai Coal Project from PT Techno CoalUtama. Churchill has now extended the size of the project by 200 squarekilometres by acquiring a 75% interest in the abutting tenements to the west ofEKCP from the Investmine Group of Indonesia. Exploration and resource drillingcontinue along with scoping and pre-feasibility work. This initial JORC Resource Statement defining 250 Mt of coal resources more thandoubled the amount of coal expected to be confirmed by April 2008. The various JORC (Joint Ore Reserve Committee) Resource categories are definedas follows: A Mining Reserve: the economically mineable part of a Measured Resource andtakes into consideration variables outside of the geological continuityincluding; mining method, processing, economics, marketing, legal,environmental, social and governmental factors Measured Resource: can be estimated with a high level of confidence with thesample locations spaced closely enough to confirm geological and gradecontinuity. Indicated Resource: can be estimated with a reasonable level of confidence, withthe sample locations spaced too widely apart to confirm geological and/or gradecontinuity but are spaced closely enough for continuity to be assumed. Inferred Resource: can be estimated with a low level of confidence, beinginferred from geological evidence and assumed but nor verified geological andgrade continuity. The aim of any exploration and drilling programme is to move the maximum numberof tonnes sitting in the Inferred and Indicated Resources categories up to theMeasured Resource category and eventually into a Mining Reserve, by continuallyupdating the geological model and other aspects, through additional drilling andother geological exploration work. Sendawar - CBM The Sendawar CBM project in Kalimantan, Indonesia, covers more than 800 squarekilometres of prospective ground and lies in close proximity to two operatingopen-cut coal mines. The project is located approximately 50km from the MahakamRiver. 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%) were granted Indonesia's first CBM JEA license in September2007. The CBM project has the potential to host Gas-in-Place of 5.6 trillioncubic feet. Churchill is currently conducting further studies on the CBMproject before starting detailed field work. 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 listed on the ASX on the 12th December 2007, has the option topurchase the remaining equity in the project but must spend AUD$1.5 million onexploration. Aside from its large shareholding in Spitfire, Churchill alsoretains a price-indexed mining royalty over the South Woodie Woodie project. The South Woodie Woodie project covers approximately 490 square kilometres (witha further 899 square kilometres under application) in the East Pilbara region ofWestern Australia, and sits approximately 400km southeast of Port Hedland in thehighly prospective Pilbara manganese province. Spitfire has identified multipledrill targets and shall begin its new drill programme shortly. In March 08 Spitfire announced that it had secured the strategic support of thediversified Norwegian-based industrial, trading and metals & alloys group,Tinfos AS ("Tinfos"), as its new major shareholder via a share placement. This information is provided by RNS The company news service from the London Stock Exchange