(MENAFN- ProactiveInvestors - Australia) Indus Coal (ASX: ICZ) has kicked off a 9100 metre Exploration HQ core drilling program on Block 9 of the Jambi Coal Projects, which is located in the Central Tebo District, Tebo Regency Jambi Provence of Eastern Sumatra, Indonesia.
The area is a known coal producing region with a recognised export thermal grade coal product sought after by Indian and Chinese power producers, with Indus aiming to monetise Jambi and the MukoMuko Coal Project over the next 12 months, with a plan to add scale through acquisitions.
Indus will have six rigs drilling the aggressive program at Block 9, with initial drilling having intersected good thicknesses of Coal Seam A at about a vertical depth of 35 to 40 metres and about 400m down dip from outcrop.
An additional four coal seams below Coal Seam B have been discovered which substantially increases the volume of coal on the Block 9 concession.
The company has conducted all its mining studies on a coal to waste ratio of 1:6, with economic studies on a coal removal cost of US$1.30 per MT of coal and a waste removal cost of US$1.80 per cubic metre.
Indus had around $1.4 million in cash at the end of March 2013.
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