Quarterly Activities Report
Perth, July 31, 2012 AEST (ABN Newswire) - Pan Asia Corporation Limited (
ASX:PZC) is pleased to provide the Quarterly Activities Report for the period ending June 2012.
HIGHLIGHTS:
Flagship High CV Thermal Coal Project (TCM)
- Positive Feasibility Study completed on TCM South Project (128.8Mt JORC, 6200 GAR CV)
-- KOPEX confirm TCM Project technically & financially feasible
-- Targeted Sellable Coal of ~ 1.5million TPA over 15 years achievable
-- Average Operating Costs ~ USD 52/t
-- Significant potential to increase mine life at this high CV (6200 GAR) coal project
- Drilling undertaken in TCM north targeting 200mt - 220 mt total TCM Project resource
- Clean & Clear Title Status obtained for TCM
- PMA Status Achieved for TCM
CEO Alan Hopkins said: "A really productive quarter for us, with the project progressing well (positive Feasibility Study for TCM South plus good drilling results in North), the title being confirmed as clear of any competing title claims (Clean & Clear) and foreign ownership confirmed (PMA status)".
Operations - TCM PROJECT- South Kalimantan, Indonesia (75% interest)
In May, Pan Asia Corporation Limited ("Pan Asia" or "the Company") received the Feasibility Study for the TCM Project, prepared by Kopex advising that the TCM Project was technically & financially feasible. The original targeted sellable coal of 1.5Mtpa over a 15 year period (22.5 Mt) was also considered achievable, however the base case Feasibility Study mine plan / NPV was currently based on ~ 18 Mt of sellable thermal coal. Recently completed infill drilling on the immediately adjacent northern area will help refine the mine plan and is expected to increase sellable tonnages to the original target. The wider spaced drilling undertaken in the North could also significantly extend the current mine life.
The Company is continuing to add to the base case Feasibility Study and peer review of the study is continuing.
Drilling in TCM North
While KOPEX were undertaking the Feasibility Study on TCM South, the Company undertook a wide spaced drilling programme in the northern half of the concession.
The target here was to increase the resource from the existing 128mt in the South to a total 200mt - 220 mt for the total TCM concession area.
This drilling programme has now been completed, with coal being intersected in all holes where targeted. The coal quality analysis and the potential target increase tonnages for this drill program is expected in the coming month.
In all, 9 holes were completed with all holes drilled intersecting target seams. All holes were surveyed, geophysically logged and cored through the target seams to obtain coal quality data, with the quality results of the last 2 holes yet to be determined at the time of this quarterly. Geological interpretation of the intersected coal in the final 2 holes conforms to the known coal formation and coal quality is expected to be in line with all quality data obtained to date.
Clean & Clear Status Received
During the quarter, the Company received confirmation of "Clean and Clear" status for its TCM Project from the Ministry of Energy and Mineral Resources (MoEMR) in Indonesia, by way of official release dated 9th May 2012.
This designation of "Clean and Clear" confirms that the TCM title has been scrutinised by MoEMR who have determined that the concession does not overlap with any other concessions. This is important in Indonesia due to the decentralised process of issuing mining titles (IUP's).
The confirmation of the Clean & Clear Status confirms clean title for the TCM project.
PMA Approval Received
Following the end of the quarter, the Company was notified that TCM had been provided official foreign owned company status from the Capital Investment Coordinating Board ("BKPM") in Indonesia by way of conversion to a PMA company (known locally in Indonesia as "Penanaman Modal Asing" or PMA). This PMA approval is an extremely important milestone that legalises the Indonesian incorporated TCM as an official foreign owned entity which will facilitate the planned incoming substantial foreign investment for the development of the project.
It significantly de risks the holding of the title as it is acknowledged to have passed to International hands from local Indonesian ownership.
Corporate - Ranrich
In the previous quarter, the Company advised it had restructured its arrangements with Ranrich where Pan Asia was repaid USD 4.5m cash on an outstanding loan previously made to Ranrich. On restructuring the arrangements, Pan Asia is now entitled to receive a royalty on the BCKP project of up to USD 15m. Pan Asia is working closely with Ranrich to deliver out the remaining ~170,000 tonnes of coal to Noble that will complete the current contract. On repayment by Ranrich, the Company retired an outstanding loan from Noble of USD ~2m.
Resignation of Director
On 25 June, the company accepted the resignation of Honardy Boentario as a director.
Mr Boentario tendered his resignation given the Company's finalisation with its arrangements with Ranrich Resources.
Corporate- Pan Asia
Corporate
- 8,771,930 unlisted options exercisable at $0.90 on or before 28 May 2012 expired and lapsed, as none of these options were exercised.
- Issued to RM Research 250,000 fully paid shares. The mandate has now expired.
Other
- CEO Alan Hopkins presented at the "New Demands for Energy" Investorium in Sydney in June sponsored by ABN Newswire;
- Held many discussions with potential offtake / development partners for the TCM project.
To view the complete Pan Asia quarterly report including Tables and Figures, please click the link below:
http://media.abnnewswire.net/media/en/docs/ASX-PZC-598636.pdf
Contact
Pan Asia Corporation Limited
T: +61-8-9381-5819
F: +61-8-9388-3701
WWW: www.panasiacorp.com.au
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