14th Aug 2006 08:26
Churchill Mining plc14 August 2006 CHURCHILL MINING PLC ("Churchill" or "the Company") Drilling commences at Sendawar Coal Project Highlights: • Drilling starts at Sendawar - Phase 1 • Programme targets initial resource position of 5 million tonnes Churchill announces that drilling has begun at Churchill's Sendawar thermal coalproject in Kalimantan, Indonesia. Churchill has contracted an Indonesian drilling company, PT Maxidrill Indonesia,to sink an initial 5000 metres of diamond core and open holes. The programme isthe first phase of the planned 18-month campaign in which approximately 23,000metres will be drilled. Churchill is targeting an initial JORC-compliant resource of 5 million tonnes.At this threshold the Company believes it should be in a position to begin trialmining. Any cash flow from this operation would be re-circulated back to theproject by way of an expanded exploration programme. Churchill will send its drill core to an accredited assay laboratory inSamarinda, Borneo. This process, coupled with the targeting of the prospectivelocations is being overseen by SRK Consulting. SRK was appointed technicalsupervisor to the project in June this year. The Company currently has 40 people in the field and plans are in place to growthis up to 100. Many of the field team are locals who have been employed tosupport the drilling crew, help with access and prepare the drilling pads. Tothis end, local community support for the Company and its plans have beenexcellent. ENDS Enquiries: Churchill Mining Plc Corporate Synergy Parkgreen CommunicationsPaul Mazak/ James Hamilton Olly Cairns Justine Howarth / Brendan McNamara+61 (0)8 9388 0377 020 7448 4400 020 7493 [email protected]@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%. The Company recently completed a 6600line kilometre airborne magnetics programme at South Woodie Woodie as part oftarget generation programme. To date much of the project area has never beenexplored due to the presence of surface cover. Sendawar Churchill Mining's Sendawar project in Kalimantan 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 be shortly producing at a rate of approximately 6 million tonnes per annum(tpa); and the privately-owned Gunung Bayan mine which has been operating since1998 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. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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