29th Jan 2008 08:32
Churchill Mining plc29 January 2008 Churchill Mining plc ("Churchill") Spitfire Resources Quarterly Report Churchill Mining Plc is pleased to draw shareholders' attention to the firstquarterly report released by Spitfire Resources Limited ("Spitfire") on the ASX,in which Churchill holds a 40.1% interest. HIGHLIGHTS Corporate • A$6M IPO (30 million 20c shares) closed heavily oversubscribed. • Successful listing on the Australian Securities Exchange on December 12, 2007. South Woodie Woodie Manganese • Experienced exploration and mine Geologist Nathan Cull appointed as Exploration Manager. • Planning commenced in preparation for RC drilling in April 2008. • Planned expansion of Regional Exploration following review of geological model and field visit. 1. Corporate The successful ASX listing and IPO has puts Spitfire in a strong position topursue its core objectives, which are: • To explore its 80%-owned South Woodie Woodie manganese project in the East Pilbara region of Western Australia; and • To review other project opportunities in Australia and other parts of the world. In relation to the second objective, Spitfire has recently initiated dialoguewith its strategic alliance partner, PT Ridlatama Nickelindo, about potentialresource opportunities in Indonesia. It has also engaged in discussions withother non-Indonesian groups, with its priority being to identify projects incommodities which are experiencing a high level of demand in key markets inAsia. Only projects demonstrating the potential to substantially increase thevalue of the company will be pursued. 2. South Woodie Woodie - Spitfire Resources 80% (Manganese) During the Quarter Spitfire sought to recruit an Exploration Manager to expediteand enhance fieldwork at South Woodie Woodie during 2008. The Company hassubsequently announced the appointment of Nat Cull to the role. Mr. Cull - who has held a number of senior positions over the past seven yearswith Australian manganese producer Consolidated Minerals Limited - has over 17years experience in the exploration and mining sectors, including several yearsof experience in resource estimation and two years working in the former SovietUnion. He has performed the role of Chief Mine Geologist for Consolidated Minerals,overseeing the mine geology at the Woodie Woodie manganese and Coobina chromiteoperations in Western Australia, where he assisted in coordinating the timelydevelopment drilling of deposits with mine schedules and was involved in thediscovery and drill-out of the Double Eight Extensions manganese deposit. During the current "wet season" in northern Australia (which restricts drill rigaccess) Spitfire has used its planning time as an opportunity to refine itsexploration targeting process and further understand the geological controlsthat exist at the project, particularly in the middle and southern portions ofthe project - which cover large areas that have had very limited previousexploration. The Company is planning initially to drill approximately 7,000m of ReverseCirculation (RC) holes at eight defined targets at South Woodie Woodie in the2008 field season. However, following a recent site visit and review of the Company's broadertenement holdings, its geological team has developed an enhanced understandingand interpretation of the geological model in these middle and southern areas.The company is optimistic that additional targets will be generated for furtherdrill campaigns once the initial group of targets has been tested. Recent field work has resulted in the identification of a typical East Pilbarastyle of manganese mineralisation within the Company's tenements, and a numberof areas of interest have been identified in addition to existing targets. A number of relatively discrete geological indicators were identified by groundreconnaissance. Given the limitations in using grass roots geophysicaltechniques, which can experience difficulties in attempting to penetratecompetent Pinjian chert breccia, the fieldwork has highlighted the need forfurther detailed geological mapping over the tenements. This has been proven tobe a useful technique which can significantly accelerate the discovery rate formanganese deposits in similar settings. Consequently an intensive mapping program will be initiated to coincide with thebeginning of the 2008 field season, focusing on geologically prospective areas. The information in this report relating to exploration results is based oninformation compiled by Mr. N. Cull. Mr. Cull is Exploration Manager forSpitfire Resources Ltd, and consents to the inclusion in this report of theinformation as presented. He has sufficient experience relevant to the style ofmineralisation and type of deposit under consideration and to the type ofactivity described to qualify as a competent person. Enquiries: Churchill Mining Plc Blue Oar Securities Parkgreen CommunicationsExecutive Director - James Hamilton Romil Patel Justine Howarth+61 (0)8 9388 0377 +44(0)20 7448 4000 +44 (0) 20 7493 [email protected] Olly Cairns +61 (0)8 6430 1631 Notes to editors Churchill Mining Plc listed on AIM in April 2005. 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, willhave the option to purchase the remaining equity in the project after spendingAUD$1.5 million on exploration. 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 The Sendawar Coal 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 ExchangeRelated Shares:
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