CALGARY (Yosefardi) – Challenger Deep Resources Corp., through its subsidiary PT Bestindo Energy, has signed the formal exclusive Mining and Marketing agreement for the ABBR Project in Central Kalimantan, Indonesia, with an initial term expiring in 2020 with an option to extend beyond that date.
The ABBR licence lies adjacent to Challenger’s KEM license where drilling activity is taking place on the initial areas scheduled for production.
Challenger’s due diligence field work on the ABBR Project has confirmed the presence of at least 16 seams which are the strike continuity to the east of seams exposed in the KEM license area.
Due diligence test pitting and outcrop sampling have confirmed coal quality ranging from GAR 6,022 to 6,330. Outcrop width of seams discovered to date vary from 0.2 – 2m. Drilling is to commence immediately on the extension of seams currently being drilled on the KEM license area. These seams are projected to strike for a distance of 1.8 km through ABBR license area.
A geological team and two drill rigs are currently on-site completing mine plan and exploration drilling.