KAL discovered a new coal seam. The classic definition of a coal seam is: a stratum of ore or coal thick enough to be mined with profit.
The new coal seam was discovered during the company’s $2 million drill program. The new seam is approximately 1.5 meters thick, with the extent and quality to be determined by further drilling.
How Coal is Measured
First an evaluation of the extent and thickness of a coal seam in order to calculate its contents by weight. Coal varies in specific gravity, from about 1.25 to 1.33, or is from one and a quarter to one and a third times as heavy as an equal bulk of water. A cubic yard of solid coal therefore weighs from 2,103 lbs. to 2,243 lbs. 2,240 lbs. make one ton, a cubic yard is a ton in weight.
It can be estimated that a seam which is exactly a yard thick in one acre will contain 4,840 tons of coal, and a square mile 3,097,600 tons. A coal seam gives a million tons of coal per foot thick per square mile.
Typically, seams are of very different thickness and quality, some workable and others unworkable; we are not certain how many we may count upon. Coal seams are broken up by faults and hitches, and a greater or less quantity of coal are sacrificed to the necessities of mining.
The price of coal is relevant to the cost of mining. It is common in estimating the contents of a coal-field to lay down on a map the line of out-crop of each seam, that line at which it is cut by the surface of the ground. Then each seam is measured separately and multiplied in each area by the thickness of the seam.
The contents of a coal-field may then be estimated with some certainty if the boundaries of the seams on every side are known.
Management Will Provide the Essential Data
Management plans to complete Phase I of drilling by the second quarter of 2007. The work program, currently in progress, includes over 5,700m of deep drilling, with 57 holes planned at depths ranging from 50m to over 200m. This will provide the information necessary to estimate the extent of the coal on the property.
Source: KAL Energy
Contact Info:
KAL Energy, Inc.
93-95 Gloucester Place
London, W1U 6JQ
United Kingdom
Phone: +44 20 7487 8426
Fax: +44 20 7691 9725 (direct)
Email:
a.caminschi@mininghouse.com
KAL Energy Inc. (OTCBB: KALG), through its wholly owned subsidiary Thatcher Mining Pte., has the rights to two coal concessions situated near the Mahakam River in North Eastern Kalimantan, Indonesia. This river is a main transportation system for transporting coal to nearby markets. Consulting Geologist, Jonathan O’Dell, has estimated that blocks 16 & 24 could contain over 192,000,000 tons of thermal coal. Today Indonesia is the leading exporter of thermal coal and export prices vary from $30.00 to $60.00 plus per ton. This region has been an active coal exporter since the 1990s, and in 2004 Indonesia passed Australia as the largest exporter of thermal coal. Governmental signing was achieved on Sep. 14th, 2006. Title & Ownership structure has been extensively reviewed by HHP, the in-country affiliate of Baker & McKenzie International.
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S&P GICS: 10102050
Sector: Basic Materials
Industry: Coal