PERTH (Yosefardi) – Palace Resources Ltd (PXR) informed ASX this morning that vendors of KCM coal project in Kalimantan have commenced a 1,000 meter drilling program in the property.

The drilling program reportedly resulted in intersection of four-meter coal at a depth of 15.72-19.65m and one seam of one meter from a depth of 15.5 meters.

As reported earlier, Palace Resources has entered into a memorandum of understanding for a potential coal production agreement with PT Solusi Coalindo.

Solusi holds a 100% interest in a coal exploration project (KCM Project), which comprises around 200 hectares—part of a larger 4,000 Ha coal contract of works (CCOW).