`
Killara Resources Limited ABN 68 132 204 561
ASX Code: KRA
Issued Capital:
120.3M Fully Paid Shares
38.0M Options (Unlisted)
31.5M Deferred
Consideration
Shares (Unlisted)
Robert Kipp
Managing Director
Peter Rudd
Non-Executive Chairman
Matthew Driscoll
Executive Director
Reza Zulkarnaen
Executive Director
Wim Zulkarnaen
Non-Executive Director
Darren Misquitta
Non-Executive Director
Leah Watson
Company Secretary
Level 3 North building
333 Collins Street
Melbourne, VIC 3000
T: +61 3 9629 3898
F: +61 3 9629 4898
www.killararesources.com
Minerals exploration in
Indonesia and Australia
Operational Update on Indonesian drilling campaign and field survey.
PT Borneo Emas Hitam – East Kalimantan
93 drill holes completed, total 3,350 metres as at 26
August 2013.
86 of the 93 drill holes intersected target coal seams.
Drilling at Pit 4 and Pit 11 now complete. Killara’s
technical team now focused on mine design.
Independent lab testing of coal samples indicate
average coal quality of 6,867 to 7,353Calorific Value (ar)
in target seams from Pit 4 and Pit 11.
Management now engaged in discussions with coal off
takers and traders.
PT Pagun Taka – Central Kalimantan
Field reconnaissance program completed.
Killara identified coal and obtained samples from three
geological formations.
Field mapping identified 22 outcrops with coal seam
thickness varying from 0.61m to 1.45 m.
Independent lab testing of coal samples indicate
average coal quality of Calorific Value 4,377 (ar),
Inherent Moisture 22.31%, Ash 1.86% and Sulphur
0.33%.
Management now preparing economic assessment of
the mining concession before undertaking any further
works.
3 September 2013
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PT Borneo Emas Hitam
Drilling contractor PT Reka Indo Internusa is continuing an expanded exploration program
at Killara’s PT Borneo Emas Hitam (BEH) coal concession in East Kalimantan. The now 120
hole (~5,050m) program is ongoing with 93 holes (~3,350m) drilled as of the 26th August,
2013. The program focuses on an additional target (East Expansion) east of the two short
term production targets (Pit 11 and Pit 4) which have been subject to land compensation.
Drilling at Pit 11 and Pit 4 is complete along with geological modelling. Killara is now in the
process of detailed mine planning and economic assessment of these 2 targets.
Current production permitting, land compensation, infrastructure, forestry classification and
ongoing works should allow Killara to commence mining these priority areas within an
estimated 3 months assuming positive results from mine planning and economic
assessment activities.
Results from drilling to date are within expectations of the Killara geological team. 86 of the
93 holes drilled have intersected target seams. Seam Interval thickness results from drilling
are summarised below. All intervals are apparent thicknesses and were adjusted to
geophysical log results. Further information is provided as an appendix.
Table 1 - BEH average seam thickness results from the current drilling campaign
Coal Quality
Since the last market update, 32 samples from 9 core holes have been submitted for
analysis at the PT Geoservices Balikpapan laboratory. An additional 3 outcrops were also
sampled and submitted to the laboratory during recent exploration. Coal quality results
from outcrop and drilling confirmed a direct shipping thermal coal product with high CV
and low ash but with varying generally high sulphur levels.
Area Seam Average Thickness (m)
11E 0.66
11EL 0.23
6E 0.39
5E 0.56
5EL 0.37
4E 0.31
33E 0.30
32E 0.23
31E 0.23
3E 0.69
3EL 0.20
2E 0.26
2EL 0.40
1EUU 0.22
1EU 0.25
1EM 0.33
1EL 0.30
Pit 11
Pit 4
East Expansion
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Table 2 - BEH average coal quality results from all outcrops
Total Inherent Ash Total Calorific Calorific
Sample ID Moisture Moisture Sulphur Value Value
% % % % cal/g cal/g
ar adb adb adb adb ar
All Outcrops 10.03 6.70 4.24 1.65 6,890 6,651
Table 3 - BEH average coal quality results from drilling on a seam by seam basis
Total Inherent Ash Total Calorific Calorific
Sample ID Moisture Moisture Sulphur Value Value
% % % % cal/g cal/g
ar adb adb adb adb ar
Seam 11E 6.33 4.45 4.77 2.68 7,283 7,140
Seam 11EL 5.69 4.35 7.34 4.06 6,965 6,867
Seam 6E 6.37 3.77 2.92 2.60 7,557 7,353
Seam 5E 7.26 4.18 5.83 3.24 7,171 6,943
Seam 4E 5.65 3.78 8.54 4.39 7,070 6,932
Seam 3E 6.62 3.38 6.27 2.21 7,312 7,069
Further detail is provided in the attached appendix.
Geology
The project covers both limbs of a south plunging syncline from the Kutai basin. Geological
formations are the Balikpapan and Pulaubalang, both major sources of coal production in
East Kalimantan. Dips increase away from the syncline’s axis up to a maximum of 56
degrees on the eastern and western concession borders in the Pulaubalang formation.
The priority areas currently being drilled are in the Pulaubalang formation on the eastern
limb of the syncline where dips range up to 30 degrees.
Ongoing Exploration
The East Extension area is the focus of ongoing exploration at BEH. A number of additional
drill targets have been identified, all with field reconnaissance completed by Killara and
some subject to drilling by previous owners of the concession. These targets will be the
focus of ongoing exploration, with the intention to drill them to a level of confidence
required for production.
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Figure 1 - BEH borehole locations, land compensation and mined out/dump areas
Figure 2 - BEH project location
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PT Pagun Taka
Killara has completed an initial field reconnaissance program at the PT Pagun Taka (PT)
concession in Central Kalimantan. The ~ 1 month field program focussed on validating
geological information provided by the vendor which included field mapping, drilling,
laboratory analysis and associated reports.
Killara identified coal from three geological formations at PT, the Montalat, Berai and
Warukin. The Montalat and Warukin formations are subject to coal mining in an adjoining
concession and throughout Central Kalimantan. Field mapping identified 22 coal outcrops
with true thicknesses averaging 0.61m and ranging up to 1.45m.
Table 4 - PT Outcrop data
Easting Northing
OC001 247,367 9,876,293 55 5E 1.45 OCBB-001-PG-BS
OC002 247,358 9,876,322 15 4E 0.86 OCBB-002-PG-BS
OC003 247,219 9,875,967 65 5E 1.28 OCBB-003-PG-BS
OC004* 246,332 9,877,738 65 18E 0.91 OCBB-004-PG-BS
OC005* 246,307 9,877,803 65 21E 1.39 OCBB-005-PG-BS
OC006 249,839 9,875,529 65 15E 0.30
OC007 248,100 9,878,693 65 15E 0.30
OC008 248,452 9,878,900 60 38E 0.17
OC009 248,454 9,878,897 55 42E 0.75 OCBB-009-PG-BS
OC010 248,519 9,878,505 68 44E 0.82 OCBB-010-PG-BS
OC011 248,418 9,878,541 68 42E 0.70 OCBB-011-PG-BS
OC012 252,121 9,882,259 58 50E 0.82 OCBB-012-PG-BS
OC013 250,396 9,881,187 40 28E 0.05
OC014 249,837 9,875,508 65 25E 0.20
OC015 248,585 9,878,371 182 52 0.35
OC016 248,440 9,878,327 55 22E 0.57 OCBB-003-PG-JL
OC017 248,213 9,879,071 40 45E 0.49
OC018 248,092 9,879,067 65 30E 0.50 OCBB-005-PG-JL
OC019 248,537 9,879,000 65 35E 0.73 OCBB-006-PG-JL
OC020 250,337 9,881,057 105 27W 0.30
OC021 250,128 9,880,985 270 25E 0.30
OC022 248,113 9,879,071 65 25E 0.23
Average 0.61
Sample CodeLocation
Outcrop Strike Dip Thickness (m)
*Outcrops OC004 and OC005 occur outside the concession boundary, however do strike
into the concession
12 of the 22 coal outcrops were sampled and submitted to the PT Geoservices Balikpapan
laboratory for analysis. Results confirmed a direct shipping thermal coal product with low
CV, very low ash and low sulphur.
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Table 5 - PT coal quality results
Total Inherent Ash Total Calorific Calorific
Moisture Moisture Sulphur Value Value
% % % % cal/g cal/g
ar adb adb adb adb ar
OC001 47.10 26.21 0.95 0.17 4,829 3,456
OC002 44.91 21.46 1.36 0.16 5,076 3,558
OC003 42.85 21.60 1.02 0.20 5,100 3,720
OC004 34.25 22.64 1.33 0.20 5,239 4,443
OC005 31.58 24.01 1.78 0.26 5,114 4,663
OC009 34.29 20.19 1.41 0.43 5,405 4,442
OC010 28.77 20.48 4.40 0.30 5,365 4,821
OC011 37.55 21.69 0.97 0.36 5,247 4,197
OC012 35.62 26.23 0.79 0.13 4,877 4,295
OC016 24.85 18.62 1.03 0.43 5,784 5,370
OC018 28.70 21.26 0.98 0.30 5,595 5,085
OC019 30.52 23.35 6.26 0.96 4,926 4,468
Average 35.08 22.31 1.86 0.33 5,213 4,377
Sample ID
Geology
The project occurs in the large tertiary Barito basin of Kalimantan and covers the southern
limb of an east-west striking anticline. Dips decrease away from the anticline’s axis and
range from 50 degrees in the Berai formation to 4 degrees in the Warukin formation.
Ongoing Exploration
A number of drill targets have been identified by the recent field reconnaissance
campaign. Killara is in the process of completing an economic assessment on the
concession, the results of which will determine the nature of ongoing work at the
concession.
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Figure 3 - PT outcrop locations
Figure 4 - PT Project Location
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Leah Watson
CFO and Company Secretary
For Investor Information, please contact:
Matthew Driscoll
Head of Investor Relations
Melbourne Head Office Phone: +61 3 9629 3898
Mobile: Australian Callers: 0417 041 725
Mobile: International Callers: +61 417 041 725
Web: www.killararesources.com
About Killara Resources Limited
Killara is an ASX listed company. Through a well-developed network of business contacts in
the Republic of Indonesia, the company is offered a range of resource projects for
potential acquisition and/or joint venture.
Competent Persons Statement
Exploration or technical information in this release has been prepared by Mr Tully Matthews
Bsc, who is a full time employee of Killara Resources Limited and a Member of the
Australian Institute of Mining and Metallurgy. Mr Matthews has sufficient experience which
is relevant to the style of mineralisation under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2012 Edition of the
“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves” (the JORC Code). Mr Matthews consents to the release being issued in the form
and context in which it appears.
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APPENDIX
Table 1 - BEH borehole locations
Table continues on next page
Borehole X Y Z Final Depth** Dip Azimuth
P11E001 504,381 9,963,472 55.2 27.0 0 -90
P11E002 504,332 9,963,484 50.4 20.2 0 -90
P11E003 504,374 9,963,320 55.0 20.2 0 -90
P11E003C 504,374 9,963,322 54.9 12.0 0 -90
P11E004 504,323 9,963,319 44.9 18.0 0 -90
P11E004C 504,324 9,963,315 45.1 17.9 0 -90
P11E004R 504,323 9,963,316 45.1 18.2 0 -90
P11E005 504,354 9,963,123 54.6 16.4 0 -90
P11E006 504,304 9,963,133 48.6 15.0 0 -90
P11E007 504,353 9,962,925 55.4 13.5 0 -90
P11E008 504,315 9,962,890 52.7 22.5 0 -90
P11E009 504,373 9,962,728 60.5 22.5 0 -90
P11E009C 504,373 9,962,730 60.5 18.0 0 -90
P11E010 504,326 9,962,722 56.0 20.0 0 -90
P11E010C 504,327 9,962,729 56.3 17.6 0 -90
P11E011 504,371 9,962,518 63.7 21.0 0 -90
P11E012 504,328 9,962,604 55.6 22.0 0 -90
P11E013 504,365 9,962,311 59.6 19.5 0 -90
P11E014 504,321 9,962,307 49.4 28.0 0 -90
P11E015 504,285 9,963,477 43.2 40.0 0 -90
P11E016 504,273 9,963,321 41.7 30.0 0 -90
P11E016C 504,276 9,963,324 41.6 30.0 0 -90
P11E017 504,260 9,963,132 42.5 20.0 0 -90
P11E018 504,276 9,962,891 47.7 28.5 0 -90
P11E019 504,275 9,962,718 37.7 19.0 0 -90
P11E019C 504,276 9,962,723 38.1 19.4 0 -90
P11E020 504,409 9,962,602 68.9 30.0 0 -90
P11E021 504,390 9,962,453 67.0 25.0 0 -90
P11E022 504,363 9,962,604 62.1 30.0 0 -90
P11E023 504,362 9,963,476 52.8 10.0 0 -90
P11E024 504,300 9,963,684 41.3 15.0 0 -90
P11E025 504,234 9,963,689 30.4 25.0 0 -90
P04E001 504,791 9,963,683 51.5 30.0 0 -90
P04E002 504,811 9,963,559 53.9 30.0 0 -90
P04E003 504,771 9,963,502 47.0 30.0 0 -90
P04E004 504,795 9,963,316 63.7 30.5 0 -90
P04E004C 504,795 9,963,319 64.1 25.0 0 -90
P04E005 504,772 9,963,281 55.3 30.0 0 -90
P04E005C 504,772 9,963,278 55.1 23.4 0 -90
P04E006 504,769 9,963,099 42.8 30.5 0 -90
P04E007 504,799 9,962,976 51.8 30.0 0 -90
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P04E008 504,815 9,962,890 61.7 31.0 0 -90
P04E008C 504,815 9,962,893 61.8 17.0 0 -90
P04E009 504,741 9,962,917 54.5 29.0 0 -90
P04E009C 504,741 9,962,914 55.2 27.0 0 -90
P04E010 504,812 9,962,699 67.8 30.0 0 -90
P04E011 504,772 9,962,746 55.8 30.0 0 -90
P04E012 504,771 9,963,361 58.9 31.0 0 -90
P04E013 504,777 9,962,842 48.1 30.0 0 -90
P04E014 504,797 9,963,191 51.3 30.0 0 -90
P04E015 504,734 9,963,185 49.0 29.0 0 -90
P04E016 504,735 9,963,428 43.8 25.0 0 -90
P04E017 504,759 9,963,631 49.1 29.0 0 -90
P04E018 504,761 9,963,420 44.3 30.0 0 -90
MH001* 505,049 9,962,993 53.1 30.0 0 -90
MH002* 505,020 9,962,996 45.9 40.0 0 -90
MH006 505,049 9,962,767 71.8 30.0 0 -90
MH006C 505,048 9,962,764 71.7 34.0 0 -90
MH007 505,019 9,962,770 64.1 43.0 0 -90
MH007C 505,018 9,962,767 64.2 43.0 0 -90
MH008 504,985 9,962,772 58.2 50.0 0 -90
MH008C 504,985 9,962,770 58.6 39.0 0 -90
MH009 504,950 9,962,776 51.1 80.0 0 -90
MH009C 504,950 9,962,778 51.5 55.0 0 -90
MH010 504,920 9,962,777 47.5 100.0 0 -90
MH010C* 504,920 9,962,778 47.0 28.0 0 -90
MH011 505,031 9,962,674 59.2 30.0 0 -90
MH012 504,999 9,962,677 57.4 40.0 0 -90
MH013 504,967 9,962,574 49.7 50.0 0 -90
MH014 504,935 9,962,574 57.4 80.0 0 -90
MH015 504,906 9,962,582 50.0 99.0 0 -90
MH016 505,012 9,962,372 50.8 30.0 0 -90
MH016C 505,012 9,962,370 50.7 18.0 0 -90
MH017 504,975 9,962,373 61.5 40.0 0 -90
MH017C 504,975 9,962,370 61.9 25.5 0 -90
MH018 504,954 9,962,378 65.0 49.0 0 -90
MH018C 504,949 9,962,372 66.9 44.0 0 -90
MH019 504,912 9,962,387 65.7 80.0 0 -90
MH019C 504,911 9,962,386 65.7 62.0 0 -90
MH020 504,884 9,962,387 67.4 100.0 0 -90
MH020C 504,884 9,962,388 67.4 79.0 0 -90
MH021 504,985 9,962,173 74.5 30.0 0 -90
MH022 504,947 9,962,174 69.6 40.0 0 -90
MH023 504,924 9,962,178 60.9 50.0 0 -90
MH024 504,894 9,962,182 59.6 80.0 0 -90
MH025 504,861 9,962,180 51.2 100.0 0 -90
MH026* 504,953 9,961,832 40.0 30.0 0 -90 Table continues on next page
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MH026C* 504,953 9,961,829 40.0 13.0 0 -90
MH027* 504,923 9,961,835 62.0 40.0 0 -90
MH030* 504,842 9,961,944 67.0 96.0 0 -90
MH030C* 504,842 9,961,941 67.0 100.0 0 -90
MH031* 504,943 9,961,732 50.0 30.0 0 -90
* Awaiting survey, co-ordinates from GPS, ** Final depth from final geophysical log depth
Table 2 - BEH borehole intervals
Borehole Seam Thickness (m) Final Depth (m)
MH001 1EU 20.63 20.99 0.36 30.0
1EM 23.53 23.90 0.37
1EL 26.33 26.61 0.28
MH002 3E 16.95 17.35 0.40 40.0
2E 37.57 37.96 0.39
2EL 39.68 39.92 0.24
MH006 2EL 3.11 3.67 0.56 30.0
1EU 21.87 22.09 0.22
1EM 22.36 22.71 0.35
1EL 28.74 29.03 0.29
MH006C 2EL 3.57 4.16 0.59 34.0
1EU 21.89 22.16 0.27
1EM 22.47 22.84 0.37
1EL 28.37 28.67 0.30
MH007 2E 16.29 16.50 0.21 43.0
2EL 17.67 18.16 0.49
1EU 37.15 37.32 0.17
1EM 38.08 38.30 0.22
1EL 40.34 40.68 0.34
MH007C 2E 16.99 17.24 0.25 43.0
2EL 18.03 18.55 0.52
1EU 37.33 37.56 0.23
1EM 38.25 38.49 0.24
1EL 40.44 40.79 0.35
MH008 2E 33.18 33.46 0.28 50.0
2EL 34.38 34.86 0.48
MH008C 2E 32.94 33.22 0.28 39.0
2EL 34.13 34.55 0.42
MH009 3E 9.01 9.23 0.22 80.0
3EL 9.40 9.60 0.20
2E 47.48 47.72 0.24
2EL 48.60 49.03 0.43
1EUU 64.85 65.03 0.18
1EU 66.73 67.06 0.33
1EM 68.07 68.43 0.36
1EL 70.36 70.62 0.26
Interval (m)
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Borehole Seam Thickness (m) Final Depth (m)
MH009C 3E 10.41 10.89 0.48 55.0
2E 49.22 49.60 0.38
2EL 50.58 51.02 0.44
MH010 3E 24.46 24.95 0.49 100.0
2E 64.00 64.24 0.24
2EL 65.44 65.82 0.38
1EU 81.82 82.02 0.20
1EM 83.53 83.93 0.40
1EL 85.40 85.70 0.30
MH010C 3E 24.10 24.50 0.40 28.0
MH011 1EUU 17.87 18.11 0.24 30.0
1EU 19.21 19.44 0.23
1EM 20.65 20.98 0.33
1EL 23.80 24.09 0.29
MH012 2E 17.47 17.68 0.21 40.0
2EL 18.41 18.81 0.40
1EUU 35.15 35.39 0.24
1EU 37.48 37.71 0.23
1EL 38.72 38.97 0.25
MH013 3E 24.33 24.84 0.51 50.0
2E 44.95 45.28 0.33
2EL 47.34 47.66 0.32
MH014 3E 48.81 49.23 0.42 80.0
2E 72.57 72.76 0.19
2EL 74.40 74.69 0.29
MH015 33E 5.36 5.66 0.30 99.0
32E 18.95 19.18 0.23
31E 41.12 41.35 0.23
3E 57.09 57.58 0.49
2E 81.97 82.26 0.29
2EL 84.21 84.56 0.35
MH016 2E 11.46 11.74 0.28 30.0
2EL 14.16 14.43 0.27
MH016C 2E 11.14 11.27 0.13 18.0
2EL 13.61 13.95 0.34
MH017 3E 20.07 21.24 1.17 40.0
MH017C 3E 20.32 21.52 1.20 25.5
MH018 3E 39.39 40.31 0.92 49.0
MH018C 3E 39.57 40.34 0.77 44.0
MH019 3E 57.97 58.78 0.81 80.0
MH019C 3E 58.34 59.16 0.82 62.0
MH020 3E 74.26 75.14 0.88 100.0
MH020C 3E 74.30 75.04 0.74 79.0
MH021 3E 10.69 11.82 1.13 30.0
MH022 3E 28.46 29.49 1.03 40.0
Interval (m)
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Borehole Seam Thickness (m) Final Depth (m)
MH023 3E 34.76 34.99 0.23 50.0
MH024 3E 52.91 53.90 0.99 80.0
MH025 3E 62.19 63.28 1.09 100.0
2E 94.30 94.55 0.25
2EL 96.17 96.46 0.29
MH026 3E 9.08 9.36 0.28 30.0
MH026C 3E 8.97 9.22 0.25 13.0
MH027 3E 10.84 11.34 0.50 40.0
MH030 3E 72.43 73.35 0.92 96.0
P04E001 4E 7.31 7.60 0.29 30.0
P04E002 4E 3.27 3.43 0.16 30.0
P04E003 5E 5.68 6.26 0.58 30.0
4E 11.75 12.05 0.30
P04E004 6E 4.33 4.94 0.61 30.5
5E 14.61 15.22 0.61
4E 20.86 21.12 0.26 25.0
P04E004C 6E 4.60 5.06 0.46
5E 14.71 15.29 0.58
4E 20.72 21.06 0.34
P04E005 6E 6.48 6.92 0.44 30.0
5E 15.28 15.85 0.57
4E 21.72 22.12 0.40
P04E005C 6E 6.35 6.74 0.39 23.4
5E 15.28 15.84 0.56
4E 21.96 22.21 0.25
P04E006 5E 8.29 8.90 0.61 30.5
5EL 9.84 10.21 0.37
4E 15.34 15.64 0.30
P04E007 4E 9.13 9.44 0.31 30.0
P04E008 4E 10.37 10.69 0.32 31.0
P04E008C 4E 11.18 11.49 0.31 17.0
P04E009 6E 14.79 15.15 0.36 29.0
5E 21.19 21.59 0.40
P04E009C 6E 16.17 16.46 0.29 27.0
5E 22.75 23.10 0.35
P04E010 4E 11.31 11.72 0.41 30.0
P04E011 5E 4.21 4.90 0.69 30.0
4E 19.50 19.80 0.30
P04E012 6E 7.88 8.41 0.53 31.0
5E 17.87 18.50 0.63
4E 23.85 24.11 0.26
P04E013 4E 13.10 13.40 0.30 30.0
P04E014 4E 7.67 8.02 0.35 30.0
P04E015 6E 14.38 14.75 0.37 29.0
6EL 16.00 16.00 0.00
Interval (m)
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Borehole Seam Thickness (m) Final Depth (m)
5E 23.00 23.60 0.60
P04E016 5E 16.35 16.90 0.55 25.0
4E 22.50 22.77 0.27
P04E017 6E 3.74 4.00 0.26 29.0
5E 12.46 13.04 0.58
4E 18.81 19.13 0.32
P04E018 5E 6.00 6.64 0.64 30.0
4E 12.40 12.70 0.30
P11E001 11EL 9.90 10.52 0.62 27.0
P11E002 11E 10.12 10.58 0.46 20.2
11EL 19.21 19.65 0.44
P11E003 11EL 8.47 8.80 0.33 20.2
P11E003C 11EL 8.57 8.79 0.22 12.0
P11E004 11E 5.23 6.07 0.84 18.0
11EL 14.69 15.01 0.32
P11E004C 11E 5.26 5.80 0.54 17.9
11EL 14.53 14.84 0.31
P11E004R 11E 5.44 6.52 1.08 18.2
11EL 14.92 15.32 0.40
P11E005 11EL 4.00 4.00 0.00 16.4
P11E006 11E 7.71 8.41 0.70 15.0
P11E007 11EL 5.00 5.00 0.00 13.5
P11E008 11E 12.60 13.49 0.89 22.5
P11E009 11EL 5.00 5.00 0.00 22.5
P11E009C 11EL 5.00 5.00 0.00 18.0
P11E010 11E 14.13 14.95 0.82 20.0
P11E010C 11E 14.02 14.94 0.92 17.6
P11E011 11E 10.15 10.60 0.45 21.0
P11E012 11E 14.25 14.96 0.71 22.0
P11E013 11E 12.90 13.22 0.32 19.5
P11E014 11E 10.76 10.87 0.11 28.0
P11E015 11E 15.60 16.36 0.76 40.0
P11E016 11E 16.38 17.50 1.12 30.0
P11E016C 11E 15.98 17.04 1.06 30.0
11EL 25.95 26.10 0.15
P11E017 11E 12.88 13.82 0.94 20.0
P11E018 11E 22.04 22.69 0.65 28.5
P11E019 11E 13.94 14.72 0.78 19.0
P11E019C 11E 13.58 14.30 0.72 19.4
P11E020 11EL 10.60 11.05 0.45 30.0
P11E021 11EL 15.26 15.56 0.30 25.0
P11E022 11E 11.00 11.00 0.00 30.0
P11E023 11E 3.94 4.71 0.77 10.0
P11E024 11E 5.95 6.76 0.81 15.0
P11E025 11E 15.00 15.00 0.00 25.0
Interval (m)
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Table 3 - BEH coal quality results from drilling
Total Inherent Ash Total Calorific Calorific
Sample ID Moisture Moisture Sulphur Value Value
% % % % cal/g cal/g
ar adb adb adb adb ar
OC001 14.84 10.03 0.97 0.24 6,515 6,166
OC002 6.27 5.13 1.06 0.36 7,424 7,335
OC003 9.81 7.15 1.56 0.14 7,200 6,994
OC004 20.26 11.69 6.23 0.41 5,695 5,142
OC005 6.62 4.40 10.18 6.47 6,528 6,377
OC006L 6.65 4.97 3.82 4.34 7,248 7,120
OC006U 6.59 4.76 1.75 4.18 7,275 7,135
OC007 9.65 8.05 3.30 0.29 7,032 6,909
OC008 10.53 7.87 2.09 0.38 7,031 6,828
OC009 11.35 8.10 18.98 0.43 5,459 5,266
OC010 14.31 10.95 2.35 0.62 6,505 6,259
OC011 9.97 7.55 4.32 0.36 6,789 6,611
OC013 12.51 10.36 4.46 0.56 6,664 6,504
OC015L 5.72 4.01 6.06 2.82 7,220 7,091
OC015U 16.35 9.03 2.74 1.17 6,338 5,828
OC017 11.38 7.31 2.57 2.46 6,820 6,520
OC018 15.25 9.11 1.72 0.88 6,564 6,120
OC021 9.33 5.54 1.65 0.73 7,290 6,997
OC022 5.12 3.15 7.87 5.17 7,285 7,137
OC023 7.56 3.61 2.37 2.09 7,443 7,138
OC024 8.01 4.68 2.75 1.17 7,360 7,103
OC025 6.59 3.98 6.01 4.19 7,229 7,033
OC026 6.54 4.40 3.16 1.56 7,345 7,180
OC030 10.54 6.89 1.86 0.55 6,851 6,582
OC031 11.35 6.94 1.54 2.01 6,917 6,589
OC032 15.08 9.34 2.42 1.89 6,405 6,000
OC033 7.31 5.51 2.75 2.34 7,416 7,275
OC035 10.50 8.10 4.44 0.33 6,878 6,698
OC040 7.99 5.49 1.36 1.24 7,289 7,096
OC043 6.57 4.72 3.68 0.79 7,297 7,156
OC044 5.72 4.28 1.98 2.32 7,546 7,433
OC046 5.47 4.06 3.17 3.29 7,482 7,372
OC3002 13.13 8.76 2.53 0.23 6,686 6,366
OC3003 10.49 7.35 2.67 0.42 7,132 6,890
OC3004 15.70 7.35 22.01 1.26 4,978 4,530
Average 10.03 6.70 4.24 1.65 6,890 6,651
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Table 4 - BEH coal quality results from drilling
Total Inherent Ash Total Calorific Calorific
Moisture Moisture Sulphur Value Value
% % % % cal/g cal/g
ar adb adb adb adb ar
P11E004C 5.72 5.82 6.40 4.13 6.57 4.18 7,130 6,961
5.82 6.52 6.34 4.35 2.76 2.49 7,488 7,332
6.52 6.62 6.45 4.54 5.97 2.79 7,135 6,992
P11E016C 16.00 16.10 6.91 3.74 17.13 4.21 6,261 6,055
16.10 16.88 6.17 4.45 5.38 2.44 7,197 7,067
16.88 16.98 6.01 4.49 5.28 3.13 7,219 7,104
26.20 26.40 5.69 4.35 7.34 4.06 6,965 6,867
P11E019C 13.96 14.06 7.02 4.62 3.93 2.09 7,321 7,136
14.06 14.46 6.97 4.43 3.15 2.07 7,408 7,211
14.46 14.61 5.70 4.64 4.44 2.90 7,319 7,238
P11E010C 14.16 14.26 5.78 3.94 7.48 4.25 7,129 6,992
14.26 14.94 6.09 4.64 3.33 2.58 7,440 7,327
14.94 15.04 6.20 4.63 6.63 4.17 7,084 6,967
P04E004C 4.78 4.98 5.87 4.19 3.92 3.22 7,297 7,169
14.78 14.88 6.14 3.93 4.82 3.17 7,296 7,128
14.88 15.34 9.18 4.73 6.22 3.37 6,971 6,645
15.34 15.44 5.69 3.44 6.85 5.35 7,195 7,027
20.88 21.15 5.83 3.88 8.34 3.23 7,118 6,974
P04E005C 6.60 6.85 5.35 4.03 2.33 2.34 7,546 7,443
15.30 15.40 4.81 3.60 5.98 3.14 7,273 7,182
15.40 15.56 5.87 4.29 3.92 2.77 7,374 7,252
15.56 15.66 5.65 4.28 4.55 2.87 7,291 7,187
P04E008C 10.55 10.65 9.07 4.35 23.09 3.70 5,632 5,354
10.80 11.05 5.46 3.66 8.75 5.67 7,017 6,886
P04E009C 16.14 16.41 6.37 3.77 2.92 2.60 7,557 7,353
22.85 23.15 8.54 3.93 7.25 3.13 7,120 6,778
MH018C 39.72 39.82 8.30 3.52 26.63 3.97 5,390 5,123
39.82 40.40 6.71 3.09 4.60 2.13 7,455 7,176
40.40 40.50 12.28 4.35 10.36 1.61 6,806 6,242
MH019C 58.55 58.65 5.92 3.68 7.02 3.05 7,225 7,057
58.65 59.35 5.38 3.44 4.99 1.95 7,470 7,320
59.35 59.45 7.30 3.34 11.38 3.21 6,837 6,557
Sample Interval (m)Sample ID
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Table 5 - JORC Table for Public Reports on Exploration Results, Mineral Resources and Ore
Reserves
Criteria Explanation
Sampling Techniques Rotary drilling was used to obtain core which was sampled to industry
standards. Samples were prepared and analysed by PT Geoserv ices to
ASTM standards. Sample intervals were calibrated with downhole
geophysical logging results from Gamma, density and Caliper sondes
Drilling Techniques 4 Jacro 175 rotary drill rigs were used to drill HQ sized holes.
Drill Sample Recovery Average recovery from core holes was >90%. No sample bias occurred due
to core losses.
Logging All chips and core was geologically logged. No geotechnical holes were
drilled. All holes were subject to geophysical logging. All logging was to a
standard appropriate for Mineral Resource estimation.
Sub-sampling techniques
and sample preparation
Full core samples were taken. Samples were prepared to industry standards
and appropriate for the deposit in consideration.
Quality of assay data and
laboratory tests
Sample preparation and assaying was completed to ASTM standards by PT
Geoserv ices. No duplicates or laboratory checks were undertaken by
Killara.
Verification of sampling
and assaying
No adjustment to the assay data was made. All data and sampling was
rev iewed by a senior/managing geologist.
Location of data points Drill locations were recorded using a GPS. These will be updated by the
survey team using Topcon Total Station equipment. Outcrops were
recorded with a GPS only.
Data spacing and
distribution
See Figure 1 and Figure 3 of this announcement for spacings. Samples were
not composited. Data spacing and distribution is sufficient to establish the
degree of geological continuity appropriate for Mineral Resource
estimation.
Orientation of data in
relation to geological
structure
Geological sampling is considered representative of the projects
geological structure. Apparent widths were reported for drill intervals and
true widths reported for outcrops.
Sample security Samples were taken, stored and delivered to the coal laboratory by Killara
geologists.
Audits or reviews NA
Mineral tenement and
land tenure status
Production permit (Izin Usaha Pertambangan No:540/005/IUPOP/MB-
PBAT/I/2011) covering a 1,002ha area in the Tenggarong district, East
Kalimantan Regency, Indonesia. Expiry on the 8th January, 2014. Listed as
‘clean and clear’ by the Indonesia’s department of Energy and Mineral
Resources. No material issues with third parties including joint ventures,
parnterships, overriding royalties, native tit le interests, historical sites,
wilderness, national park or environmental settings known. Killara 80%
ownership.
Exploration done by other
parties
Vendor data included 566 borehole logs, topographical mapping, coal
analysis and associated reports. This information was validated by Killara’s
geologists however is not sufficient to allow for reporting of Reserves to
JORC Standards.
Section 1 Sampling Techniques and Data
Section 2 Reporting of Exploration Results
Table continues on next page
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Geology BEH is located in the Kutai basin, East Kalimantan, Indonesia. The first phase
of sedimentation in the Kutai Basin was a transgressive phase which began
in the early Miocene, this was followed by a phase of regression that
continues today. Sediments within the basin characteristically consist of
clastic fine grain quartz sandstones, siltstones and claystones. Other
sediments include intercalated siltstones, limestones and coal deposited in
parallic, neritic or littoral deltaic environments grading to open marine
environments. PT is located in the Barito basin, Central Kalimantan,
Indonesia. The basin is an asymmetric basin, with a foredeep in the eastern
part of the basin and a platform in the west approaching the Schwaner
Shield. The Barito Basin commenced its development in the Late
Cretaceous, following a micro-continental collision between the
Paternoster and SW Borneo microcontinents. The geological formations at
PT are Oligocene to Pliocene.
Drill hole information See Table1, Table 2 & Table 3 from the Appendix.
Data aggregation
methods
NA
Relationship between
mineralisation widths and
intercept depths
Apparent widths were reported for drill intervals and true widths reported
for outcrops.
Diagrams See Figure 1 & Figure 3.
Balanced reporting NA
Other substantive
exploration data
NA
Further work Refer to the announcement.
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