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20260213_MEJA_Tanggapan atas Permintaan Penjelasan Bursa_32027599_lamp3.pdf
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FAAN GROBBELAAR & ASSOCIATES
JORC COMPLIANT
REPORT ON
PT.TRIMATA COAL PERKASA
JF Grobbelaar
June, 2013
14 Achilles Street, Herlear, Kimberley, 8301, SOUTH AFRICA
Cell No: +27 79 681 0513; Fax no: +27 86 531 4611
e-mail: faangrobbelaar@yahoo.com
Page 2
–1– June 25, 2013
Contents
INTRODUCTION .......................................................................................................................... 4
Appointment ............................................................................................................................... 5
General overview ........................................................................................................................ 5
Disclaimer ................................................................................................................................... 7
Sources of Information ........................................................................................................... 7
QUALIFICATION OF THE CONSULTANTS ............................................................................ 8
Declaration of interests and Assignments .................................................................................. 8
Involvement of the qualified person ....................................................................................... 8
Principle .................................................................................................................................. 9
Faan Grobbelaar & Associates ............................................................................................... 9
INDONESIAN MINING LEGISLATION .................................................................................. 10
PROPERTY, ITS LOCATION AND ACCESS ........................................................................... 15
TOPOGRAPHY, CLIMATE AND VEGETATION ................................................................... 19
Topography ............................................................................................................................... 19
Climate...................................................................................................................................... 20
Vegetation ................................................................................................................................. 21
REGIONAL GEOLOGICAL SETTING ..................................................................................... 22
Origin of the coal ...................................................................................................................... 24
Coal occurrences....................................................................................................................... 25
Coal within the Concession area .............................................................................................. 26
EXPLORATION HISTORY ........................................................................................................ 30
Non-penetrating explotation ..................................................................................................... 31
Penetrative Exploration ............................................................................................................ 31
LOCAL GEOLOGY OF THE PROPERTY ................................................................................ 32
EXPLORATION .......................................................................................................................... 35
Target generation ...................................................................................................................... 35
Resource data (Drilling) ........................................................................................................... 35
Exploration QAQC procedures ................................................................................................ 36
Methodologies applied ......................................................................................................... 36
Possible deficiencies ............................................................................................................. 37
Laboratory/s .............................................................................................................................. 37
Accreditation ........................................................................................................................ 37
Procedures and standards...................................................................................................... 37
Laboratory QAQC procedures.................................................................................................. 38
Methodologies applied ......................................................................................................... 38
Possible deficiencies ............................................................................................................. 38
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–2– June 25, 2013
Sufficiency and representivity of available data for determining quoted resources/reserves .. 38
Geological logging ............................................................................................................... 38
Data recorded ........................................................................................................................ 38
Consistency ........................................................................................................................... 39
Geological interpretations......................................................................................................... 39
Lithology .............................................................................................................................. 39
Mineralogy............................................................................................................................ 40
Robustness of the geological model ......................................................................................... 41
Impact of possible alternative interpretations ........................................................................... 41
Quality of the raw database used for resource estimation ........................................................ 41
RESOURCE/RESERVE ESTIMATES ....................................................................................... 42
Adequacy of data density ......................................................................................................... 42
Identification of any areas requiring further drilling/sampling ................................................ 43
Applicability of resource / reserve estimation methods ........................................................... 44
Database verification ................................................................................................................ 44
Geological Models .................................................................................................................... 44
Modeling methodology and cross validation of models ........................................................... 44
Modeling Methodology ........................................................................................................ 44
Cross Validation ................................................................................................................... 49
Coal qualities ............................................................................................................................ 49
Classification of the resources/reserves .................................................................................... 49
Resources/reserves.................................................................................................................... 52
CONCLUSION ............................................................................................................................ 53
PRELIMINARY RECOMMENDATIONS ................................................................................. 53
JORC COMPLIANCE ................................................................................................................. 54
REFERENCES ............................................................................................................................. 55
Figure 1- Indonesian coal qualities based on the Specific Energy (kcal/kg) .................................. 7
Figure 2: - Survey layout of Authorization No 21 ................................................................... 15
Figure 3- Locality of the TCP project area in South Sumatra ............................................... 16
Figure 4=Locality map of the IUP held by PT. TCP ............................................................... 17
Figure 5: - Contour map of PT. TCP ........................................................................................ 19
Figure 6: - Isometric view of the satellite image of PT. TCP .................................................. 20
Figure 7: - Average Rainfall and Temperature Distribution for Sumatra ........................... 20
Page 4
–3– June 25, 2013 Figure 8: - Tectonic setting of the South Sumatra Basin ........................................................ 22 Figure 9: - PT. TCP with area of detailed investigation ......................................................... 27 Figure 10: - Detailed stratigraphy indicting the relation of coal seams ................................ 28 Figure 11: - Correlation of drill holes within area of detailed drilling .................................. 29 Figure 12: - Cross sections ......................................................................................................... 30 Figure 13: - Geological map of the Palembng area, South Sumatra ..................................... 33 Figure 14: Detailed drilling program over preferred area ..................................................... 35 Figure 15: - Borehole positions with area of interest .............................................................. 43 Figure 16: - A Seam semi-variogram ........................................................................................... 45 Figure 17: - A-Lower seam Semi-variogram ............................................................................... 46 Figure 18: - A Seam results .......................................................................................................... 47 Figure 19: - A-Lower Seam results ............................................................................................. 48 Table 1-The boundary co-ordinates of PT. TCP's IUP ................................................................. 15 Table 2: - Stratigraphy of the South Sumatra Basin with the main coal-bearing formation shaded in gray. .......................................................................................................................................... 25 Table 3: - Seam qualities within PT. TCP .................................................................................... 34 Table 4: - Drill hole data available for evaluation purposes ......................................................... 36 Table 5 - Borehole data used for resource estimation .................................................................. 42 Addendum 1 - Authorization No 29a/KPTS/TAMBEN/2013 Addendum 2 – Raw Drillhole logs Addendum 3 - Laboratory Standards Addendum 4 – Chemical Analysis. Addendum 5 – Raw Database Addendum 6 – Résumé for JF Grobbelaar
Page 5
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Page 7
–4– June 25, 2013
INTRODUCTION
The 2012 amendments within the JORC Protocol came into effect on 20 December
2012.
The JORC Code 2012 Edition and the revised ASX listing rules are subject to a
transition period until 30 November 2013. During this period, the minimum
requirement is compliance with the JORC Code, 2004 Edition and the current
version of the ASX listing rules.
In order to take advantage of any of the provisions of the 2012 JORC Code, the
Competent Person or company must comply with all the provisions of the 2012
JORC Code and the new ASX listing rules.
CRIRSCO (the Committee for Mineral Reserves International Reporting Standards)
assisted in ensuring the best possible alignment of the JORC Code 2012 Edition
with its international counterparts, particularly in the adoption of the 2012 JORC
Code of the current CRIRSCO standard definitions (for Mineral Resources and Ore
Reserves and their classifications, Public Report, Competent Person, Modifying
factors, Exploration Target and Scoping, Pre-feasibility and Feasibility Studies).
During the Resource classification in this report the special dependence of date was
taken in consideration and the resource calculation is transparent and repeditive.
The Resource classification is based on the error coefficients generated during geo-
statistical analysis and expressed as confidence in the accuracy of the calculation.
The scale of confidence used in the exercise is as follows:
90% and higher accuracy - Measured Resources
75 to 90 % accuracy - Indicated Resources
50 to 75% accuracy - Inferred Resources; and
Less than 50% accuracy - Target Resources.
Page 8
–5– June 25, 2013 APPOINTMENT The internationally accredited Mining Consultants, Faan Grobbelaar & Associates (FGA), was appointed by the client; PT. Trimata Coal Mighty (PT. TCP), to compile a Competent Person‘s Report using the JORC Protocol in the 032 DPE area, situated ±90 kilometers north-west of the city of Palembang in the south of Sumatra, Indonesia. FGA is a South African based entity with offices in Kimberley, South Africa, Patong (Phuket), Thailand, and Bandung, Indonesia from where they are involved in diverse set of projects that includes coal, oil/gas, manganese, iron and gold. The Company, PT. TCP, is engaged in the large commercial field of fuel and gas, coal and other liquids/solids or similar products. Based on the approval from the Banyuasin Regent, the company obtained a Mining Business License (IUP) for coal exploration in Districts Tungkal Ilir, Rimau and Rimau Island in the South Sumatra Province with area code DPE 032. PT. TCP, after extensive exploration work, which included fieldwork, geodetic surveys, drilling and geophysical logging to determine economic viable resources, is currently busy to complete a pre-feasibility study. This report forms part there-of. GENERAL OVERVIEW The DPE 032 exploration area, 11 640 ha in extent, is situated within the South Sumatra Basin. This basin falls within the back-arc (or foreland) that resulted from major tectonic events that occurred during pre-tertiary times. (Tertiary period was from 65 million to 2.6 million years ago). The basin is bordered by the Barisan Mountains, the backbone of Sumatra‘s geographical trend lines in the west, the pre-tertiary Sunda Shelf in the east, the Tigapuluh high, a basement ridge between the south and central Sumatra Basins, in the north and the ocean in the south.
Page 9
–6– June 25, 2013 The basin itself consists of several structural sub-basins with a sedimentary section of Tertiary aged suite of formations unconformably overlying the eroded and faulted topography of pre-Tertiary metamorphic and igneous rocks. The coal seams of the South Basin can be found in the middle to late Miocene formations, specifically the Middle Palembang Member, also called the Muara Enim Formation. In 2007 the total Indonesian coal resources were estimated to be ±93.4 billion tons, with the Sumatra basins having ±39% of the resources, or ±36.4 billion tons. Of this 2.25 billion tons were proved to be mineable. Figure 1 displays a typical composition of coal qualities from the Indonesian coal industry. With the Presidential decree, No 5 of the year 2006, concerning the Indonesian National Energy Policy, the increased usage of low grade coals for domestic use, coal liquefaction and the upgrading of brown coal will be key factors in an increasing domestic coal usage. The aim is also to reduce the country‘s dependence on oil and gas from 77.8% of the energy source to 50% while coal needs to be upgraded from 17.1% to 33%. This means an increase of production from 110.8 million tons/year at the time to 421 million tons/year in 2025. The foreseen production for 2011 was ±270 million tons. In August 2011 the production reached 235 million tons while the new estimate of coal production foreseen increased to 370 mil tons for the year.
Page 10
–7– June 25, 2013
Figure 1- Indonesian coal qualities based on the Specific Energy (kcal/kg)
With this published, it is imperative that the production of coal be encouraged.
In their quest for mineable coal resources PT. TCP, also as a form of support to the
Government‘s development of alternative energy, as the concession holders had
done detailed exploration on the coal deposits on the 032 DPE area. The results of
this work proved vast resources with excellent potential in the area covered by the
IUP.
DISCLAIMER
Sources of Information
The Australasian Joint Ore Reserves Committee (JORC) reporting of
Mineral resources
Geological reports by various geologists of the area, including
academic research in the region and on plate tectonics.
Results from geological fieldwork carried out by PT. TCP,
Geological information and sample results obtained from the drilling
carried out in the area.
Data supplied or obtained from sources outside of the company
Page 11
–8– June 25, 2013
Assumptions, conditions and qualifications set forth in this report
The technical input and assumptions of in-house information,
parameters, rates and assumptions at the time the report is written.
Other than as disclosed herein the outside sources of information were relied
upon without extensive inquiry and review. The author/s had access to all
information available and had the opportunity to visit the property and review the
operation/s. The author/s makes no particular representation to the degree of
accuracy of that information and do not bear liability there to, although
verifications were done as far as possible. A dataset was compiled from all in-
house information and information obtained from sources outside the company.
QUALIFICATION OF THE CONSULTANTS
This report was prepared as part of the Technical Report, in accordance with the
JORC preferred format for PT. TCP by the first qualified person (QP), J.F.
Grobbelaar. J.F. Grobbelaar has a geological and mineral economic background
and has been involved in the evaluation of deposits since 1986. The first QP, (J.F.
Grobbelaar) has reported and made conclusions within this report with the sole
purpose of the report being used by PT. TCP as a supplement to a full technical
report, subject to the terms and conditions of PT. TCP‘s contract with the qualified
person/s and or contributing qualified persons. The contract permits PT. TCP to file
this report as part of a Technical report with their Securities Regulatory Authorities
or other legislators pursuant to provincial securities legislation or other legislation.
Except for the purposes legislated under provincial securities laws or any other
security laws any other use of this report by any third party is at that party‘s sole
risk.
DECLARATION OF INTERESTS AND ASSIGNMENTS
Involvement of the qualified person
All of the independent qualified persons / FGA have in no manner any financial
or preferential business relationships with PT. TCP. The independent qualified
Page 12
–9– June 25, 2013
person/s have a purely business relationship with the operating company and
provide technical and scientific assistance when required and requested by the
company. The independent qualified person/s all have other significant client
lists and have no financial interest in PT. TCP.
Principle
PT. TCP is a private company within the borders of Indonesia.
Faan Grobbelaar & Associates
FGA is a recognized geological and mining consulting group, established in
2012, with its offices in Kimberley, South Africa, and Patong Beach (Phuket),
Thailand.
FGA neither have nor hold:
Any rights to subscribe to PT. TCP now or in the future;
Any vested interests in any concessions held by PT. TCP;
Any rights to subscribe to any interests in any of the concessions held by
PT. TCP, either now or in the future;
Any vested interests in either any concessions held by PT. TCP or any
holders of any adjacent concessions; and
Any rights to subscribe to any interests or concessions adjacent to those
held by PT. TCP, either now or in the future.
The only commercial interest FGA has is the right to charge professional fees at
normal commercial rates, plus normal overhead costs, for work carried out in
connection with the investigations reported here. Payment of professional fees is
not dependent either on project success or project financing.
Page 13
– 10 – June 25, 2013
INDONESIAN MINING LEGISLATION
When the newest mineral and coal law, Law No 4 of 2009, was implemented it had
broad ranging implications for future and existing mining concessions. This
included the introduction of a new licensing system that replaced both mining
authorizations (Kuasa Pertambangan or KPs) that were previously only available to
wholly owned Indonesian Companies as well as Contracts of Work (CoWs) and
Coal Contracts of Work (CCoWs).
The law only provided substantive principles and had left many specific related
issues to be resolved during the implementation of it by means of regulations. The
issues included how the new mining regime would impact on existing KPs and
CoWs/CCoWs and how certain processes would work, such as the issuing of the
new mining business licenses (Izin Usaha Pertambangan or IUPs), including the
new auction process.
Two new regulations became effective as from the 1st of February 2010 and had
gone some way to assist in the implementation and clarification of the new law.
These regulations are:
Government Regulation No 22/2010 on Mining Areas; and
Government Regulation No 23/2010 on concluding of coal and mineral
mining business activities.
Some of the more prominent features of these regulations and their impact/s were:
-
EXISTING KPS AND COWS/CCOWS
Regulation 23/2010 provided clarification on the following areas:
a. KPs that were issued under the old mining regime and CoWs/CCoWs that were
concluded before the new law will be honored until they expire, subjected to
certain adjustments to be made.
Page 14
– 11 – June 25, 2013
b. Existing KP holders had to convert their KPs to IUPs.
c. KPs that were applied for before the enactment of Law No 4/2009 and an area
reservation was issued for, would be processed as an IUP without the
requirement for a public auction within 3 months of the enactment.
MINING AREAS AND MINING LICENSES
Regulation provided some technical guidelines as to how Mining Areas (Wilayah
Pertambangan or WPs) would be designated: -
WPs can be designated as –
mining business areas (Wilayah Usaha Pertambangan, WUPs)
state reserve areas (Wilayah Pencadangan Nasional, WPNs) (both of which
will be determined by the Minister of Energy and Mineral Resources), and
people‘s mining areas (Wilayah Pertambangan Rakyat, WPRs) (which will be
determined by the local regent or mayor).
In respect of non-metallic minerals and rocks, the Minister of Energy and Mineral
Resources could delegate his authority to determine WUPs to the relevant
governor.
A WUP may still be categorized into 5 types, namely,
radioactive,
metallic mineral,
coal,
non-metallic, and/or
rock WUPs.
After categorisation has been carried out, the WUP can be determined to be a
mining business licence area (Wilayah Izin Usaha Pertambangan, WIUP) and be
issued with an IUP.
Page 15
– 12 – June 25, 2013
Regulation No.23/2010 provided the following clarification on the issuance of IUPs
and the auction process.
a. An IUP will only be issued after a WIUP has been granted. In respect of
metallic minerals and coal, an auction process must be carried out with the
winner of the auction being granted the WIUP. To qualify to bid, bidders
must be entities established and domiciled in Indonesia, cooperatives or
Indonesian citizens. It would therefore appear that foreign investors may only
participate in an auction through a foreign investment company (PMA
Company).
b. Once the bid process is complete, the successful bidder must then apply for
an IUP within five business days of the announcement of the winner of the
public auction. Failure to do so will result in the successful bidder being
deemed to have withdrawn from the bid and forfeiting any bond paid as part
of the bidding process.
Further details on the auction process will be set out in a separate Ministerial
Regulation.
RELINQUISHMENT
Regulation No.23/2010 provided greater detail concerning the areas to be
progressively reduced as part of the relinquishment process under Law No.4/2009.
It then became clear that an exploration IUP has the following area and time limits:
a maximum of 50,000 hectares (for metals) and 25,000 hectares (for coal) for
a WIUP in the fourth year of exploration;
a maximum of 25,000 hectares (for metals) for a WIUP in the eighth year at
the end of exploration or the commencement of production-operation; and
a maximum of 15,000 hectares (for coal) for a WIUP in the seventh year at
the end of exploration or the commencement of production-operation.
Page 16
– 13 – June 25, 2013 DIVESTMENT Regulation No.23/2010 provided some clarity regarding the scope of divestment obligations under Law No.4/2009. The level of domestic ownership required through divestment must be a minimum of 20%, effective 5 years after the commencement of commercial production and cannot be diluted through subsequent capital increases. There is a procedure that must be followed to divest shares so that 20% local ownership can be achieved. The divestment shares must first be offered to the central and the relevant regional government. If the central government or the regional government declines such offer, the divestment shares must then be offered to state owned and regional entities and if such entities decline, then offered to private entities. The offer to the stated owned entities, regional owned entities and private entities is made through a tender process. It would seem that a practical solution would be for the foreign owners to find a suitable local party before the divestment obligation arises and to sell the divestment shares to such local party in order to avoid the convolutions of the divestment obligations. CONTRACTING OUT Regulation No.23/2010 provides some scope for a holder of a Production Operation IUP to contract out processing, refinery, sales and transportation activities to another party to perform those activities. However, only a holder of a specific Production Operation IUP for processing and refining may process ore and refine minerals. The procedures and requirements to obtain the specific mining licences to carry out these activities would be set out in a follow-up Ministerial Regulation. DOMESTIC MARKET OBLIGATIONS Regulation No.23/2010 clearly reinforces domestic market obligations (DMO) for holders of Production Operation IUPs in respect of minerals and/or coal. The earlier issued Ministerial Regulation No.34 of 2009 on Prioritisation of Domestic Mineral
Page 17
– 14 – June 25, 2013 and Coal Supplies (Ministerial Regulation No.34/2009) requires mining companies to sell a certain percentage of their production to domestic users. Neither Ministerial Regulation No.34/2009 nor Regulation No.23/2010 sets out the new minimum pricing structures for sales of coal and other minerals nor how these will be set in practice. Ultimately these matters had to be determined by the Minister of Energy and Mineral Resources in a follow-up regulation. While Regulation No.22/2010 and Regulation No.23/2010 went some way towards addressing the concerns and uncertainty of Law No.4/2009 and its operation, further implementing regulations are required to be issued as soon as possible to instil confidence and certainty in the Indonesian mining industry.
Page 18
– 15 – June 25, 2013
PROPERTY, ITS LOCATION AND ACCESS
PROPERTY:-
Approval was given on 7 January 2010, Authorisation No 21 of 2010, by the
Banyuasin Regent for the IUP territory of PT. TCP (Addendum 1 - Authorisation No
29a/KPTS/TAMBEN/2013)
The co-ordinates that describes the boundary of the area are shown in Table 1
while figure 2 is an outlay thereof:
Table 1-The boundary co-ordinates of PT. TCP's IUP
Point Longitude Latitude
No Deg Min Sec Deg Min Sec
1 104 19 39.778 2 30 30.870
2 104 19 39.778 2 37 42.701
3 104 16 13.026 2 37 42.701
4 104 16 13.170 2 34 16.240
5 104 12 54.515 2 34 16.240
6 104 12 54.515 2 30 30.870
Figure 2: - Survey layout of Authorization No 21
Page 19
– 16 – June 25, 2013
The surveyed points of the concession is part of the Right.
LOCALITY:-
The project area is situated in South Sumatra, northwest of the city of Palembang
(Fig 3).
TCP
Project Area
Figure 3- Locality of the TCP project area in South Sumatra
The territory of PT. TCP is administratively included into the districts of Pulau
Rimau and Tungkal Ilir in South Sumatra Province (Fig 4)
Page 20
– 17 – June 25, 2013 Figure 4-Locality map of the IUP held by PT. TCP
Page 21
– 18 – June 25, 2013 ACCESS:- The area, situated northwest from Palembang, can be reached via a tarred road from Palembang to Sungai Lilin. From Sungai Lilin to the site dirt roads through palm plantations must be followed. The last portion should only be attempted with off-road enabled transport. Travel time to the project area from Palembang is ± 5.hours.
Page 22
– 19 – June 25, 2013
TOPOGRAPHY, CLIMATE AND VEGETATION
TOPOGRAPHY
Topography is generally dominated by an undulated landscape with elevations
ranging from 26m above sea level in the northern central part of the area to 4m
above sea level in the south where the Calik River bisects the area in the south (Fig.
5 & 6).
TOPOGRAPHIC MAP
of
IUP PT. Trimata Coal Perkasa
N
Kilometer
0 0.5 1.0 1.5 2.0
Contours Roads
River PT TCP Boundary
Figure 5: - Contour map of PT. TCP
Page 23
– 20 – June 25, 2013
Figure 6: - Isometric view of the satellite image of PT. TCP
CLIMATE
South Sumatra has a tropical climate which is influenced by two distinct seasons
during the year, the wet monsoon season and the dry season. The wet season
occurs normally from September to January with a rainfall that varies from 2,100 to
3,300mm for the period. The dry season stretches from February to August. (Fig. 6)
Figure 7: - Average Rainfall and Temperature Distribution for Sumatra
The temperature varies from 22° to 30° Celsius with a humidity factor of between
73% and 84%.
Page 24
– 21 – June 25, 2013 VEGETATION Sumatra has a huge range of plant and animal species but has lost almost 50% of its tropical rainforest in the last 35 years. Most of Sumatra used to be covered by tropical rainforest, but economic development coupled with corruption and illegal logging has severely threatened its existence. Even designated conservation areas have not been spared from this destruction. The flora within PT. TCP consists at large of rubber plantations, palm oil plantations and pulses. Amongst the small property holders various crops are cultivated, such as garden crops, dry rice fields, and several species of fruit trees. Isolated patches of grass- and scrubland exist, as well as indigenous swamp forests.
Page 25
– 22 – June 25, 2013
REGIONAL GEOLOGICAL SETTING
The South Sumatra basin is located to the east of the Barisan Mountains and
extends into the offshore areas to the northeast and is regarded as a foreland
(back-arc) basin bounded by the Barisan Mountains to the southwest, and the Pre-
Tertiary Sunda Shelf to the northeast (de Coster, 1974). The South Sumatra basin
was formed during east-west extension at the end of the Pre-Tertiary to the
beginning of Tertiary times (Daly et al., 1987).
TECTONIC SETTING
The structural features present in the basin are the result of the three main tectonic
events. They are Middle-Mesozoic orogeny, Late Cretaceous-Eocene tectonism
and the Plio-Pleistocene orogeny. The first two events provided the basement
configuration including the formation of half grabens, horsts, and fault blocks. The
last event, the Plio-Pleistocene orogeny, resulted in formation of the present
northwest-southeast structural features and the depression to the northeast (de
Coster, 1974) (Fig 7).
Figure 8: - Tectonic setting of the South Sumatra Basin
Page 26
– 23 – June 25, 2013 STRATIGRAPHY The sediments of the South Sumatra Basin comprise of an economic basement of Pre-Tertiary rocks that is overlain unconformably by a thick Tertiary sequence. The first Tertiary sedimentation occurred during Early Oligocene and gave rise to the Lahat Formation consisting of mainly volcanic rocks, claystone and shale that was deposited locally in the graben areas. The Talang Akar Formation (Late Oligocene) overlies the basement where the Lahat Formation is missing. It is a transgressive sequence resulting from Late Oligocene to Middle Miocene subsidence. The later sedimentation during mid-Miocene to recent produced a regressive sequence (de Coster, 1974). In most parts of the Palembang High, sediment deposition started in Early Miocene, except in local low areas where terrestrial to near shore sediments of the Talang Akar Formation (Oligocene) and terrestrial sediments of Lahat and Lemat Formations (Oligocene) had been deposited. In many places, the Talang Akar, the Lahat and the Lemat Formations cannot be distinguished from each other and hence are called Pre-Baturaja-clastics. During Early Miocene, carbonate sediments of the Baturaja Formation were developed either directly above the Pre-Tertiary basement or above a thin Talang Akar Formation. Off the Palembang High, hundreds of feet thick of the Talang Akar Formation are present (Ferianto et al., 2005). Approximately 17.5 MY the sea level dropped, and the Baturaja carbonates were exposed and subject to diagenetic processes that led to development of good secondary porosity. Afterwards the sea level rose again and the Telisa marine shales (Early-Mid. Miocene) were deposited. Around 15.5 MY the sea level gradually dropped again and near-shore to terrestrial sediments of Palembang Formations (Upper Miocene-Pliocene) were deposited (Ferianto et al., 2005). Plio-Pleistocene orogeny (in 2.8 MY) created the current structures in the region. A NW-SE striking monocline dipping to SW is the predominant feature there. The detail Stratigraphy of South Sumatra Basin is described in other literature, such as De Coster (1974) (Ferianto et al., 2005).
Page 27
– 24 – June 25, 2013
Regional sediment sources were generally from the Sunda Plate to the north and
Palembang or Lampung High to the east (Sitompul et al., 1992). Maximum
transgression in the middle Miocene deposited the marine Gumai Shale Formation
across the region before uplift and compression resulted in the deposition of shallow
marine and continental sandstones and shales. The development of the Barisan
Mountains, and possible volcanic islands to the south and southeast, further
decreased and then cut off the overwhelmed marine influences and added new
clastic and volcanoclastic sources from those directions. Erosion of northwest
trending anticlines that were formed during compression resulted in local Plio-
Pleistocene continental deposits within the intervening synclines. Continued
volcanic activity has covered much of the surface of the South Sumatra Basin
(Bishop, 2000).
ORIGIN OF THE COAL
The sub-bituminous to bituminous Tertiary coals of SE-Asia differ fundamentally
from the geographically close Permo-triassic Gondwana coals (Australia, India and
S. Africa) or from the Carboniferous coals of Laurasia. The Tertiary SE-Asian coals
are usually non-banded clean vitrainous, or clarainous coals with resins, and have
monotonous seam profiles; ash occurs in intercalated clay and sandstone partings.
There are thus distinct contrasts to the usually conspicuously banded durainitic
Gondwana coals with high inherent ash contents.
The widely variable microlithotypes of Gondwana coals differ significantly from the
uniform SE-Asian coals, which consist almost exclusively of vitrite+clarite with
almost no durite+inertinite or intermediates, and have thus characteristic high
reactive components. Vitrinite, the principal maceral (in low-RANK coals huminite
and humodetrinite), is accompanied by minor amounts of exinite and inertinite. The
more variable macerals of Gondwana and Laurasian coals differ mainly in regard to
exinite and inertinite components (MacKowski, 1968, Robertson Research, 1977).
Three characteristic types of the relatively uniform SE-Asian coals can be
discerned in the field:
- vitrain: massive bright coal, mainly vitrite with more than 95% Vitrinite;
Page 28
– 25 – June 25, 2013
- vitroclarain: dominant type; finely laminated bright coal, consisting mainly of
vitrite with some clarite/hydrite and clarovitrite; main macerals — vitrinite with
moderate exinite;
- (duro)clarain - durain: occurs subordinately; finely laminated coal with dull
lustre, includes vitrite+clarite/hydrite with duroclarite and vitrinertinite.
The characteristic maceral analysis and the low inertinite contents (mainly fungal
remains) indicate a tropical flora in a humid climate and relatively high water levels
during the decay of the vegetation. The intensive jellification of the plant tissue
points to relatively acid ground water, possibly with brackish or marine influences
(in higher sulphur coals). Detrital vitrinite may indicate the decay of plant material in
limno telmatic and open-marsh environments (Robertson Research, 1977).
COAL OCCURRENCES
The South Sumatra basin, between the tin granites of the Sunda shelf and the
volcanic arc of Sumatra, contains mainly Paleo geneparalic and tuffaceous non-
marine clastic sediments, overlain by transgressive marine Neogene and a
subsequent regression series with major coal deposits. The stratigraphy is
summarized below:
Table 2: - Stratigraphy of the South Sumatra Basin with the main coal-bearing formation shaded in gray.
Formation Age Description
Upper Palembang Plio-Pleistocene Tuffaceous clays, sands and gravels
Brackish-fresh water facies with sandstones, mudstones and
Middle Palembang Mio-Pliocene
coal measures
Early stage of the regressive cycle with a shallow neritic to
Lower Palembang U. Miocene
delta plain facies with shales and glauconitic sandstones
Maximum extent of the transgressive facies with limestones,
Telisa/Batu Raja L. Miocene calcareous fossiliferous shales, glauconitic sandstones, and
tuffs
iInitial transgression with deltaic sandstones, siltstones,
Talang Akar Oligo-Miocene shales, grading in the basin into marine sandstones and
shales with local euxinic environments
Coarse elastics, tuffaceous sandstones and variegated clays;
Eo-Oligocene
tuffaceous shales with thin limestones
Mesozoic metamorphics, interlayered sediments and mafics,
Pre-Tertiary
limestones and Jurassic to Cretaceous granites
The coal measures in the middle Palembang formation developed between the
Asian landmass and the rising Barisan range after the closing of channels through
the Barisan volcanic arc. They extend from central Sumatra over more than 700 km
Page 29
– 26 – June 25, 2013 to south Sumatra, and are exploited since decades at Bukit Assam, where the three main coal horizons have an average aggregate thickness of about 30 to 40 m. Several minor seams, lenticular shales, sandstones, carbonaceous mudstones, and tuffitic marker horizons are interbedded. The coal rank depends mainly on the proximity to igneous intrusives. In general, the usually claritic coals with distinct resins are lignite to sub-bituminous coal, although the coal rank improves even to anthracite in thermal alteration haloes. COAL WITHIN THE CONCESSION AREA Within the larger concession 21 boreholes were drilled during 2012 intersecting five distinct coal seams, being the A -, the A-Lower -, the B -, the C-Upper and the C Seams. In the area of interest, situated in the western portion of the concession, (Fig 9), the 2012 borehole information indicated an uplift of the footwall, causing the coal seams present in the area being shallower than in the remainder of the concession. During interpretation of the borehole information in this area it seems that the area mentioned has a basement high, causing the lower three seams to cut-out against it, leaving only the two upper seams, the A – and A-Lower seams to exist in the area under detailed investigation. Few thinner seams with thicknesses less than 1m do also exist. (Fig 10).
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BOREHOLE LOCALITY MAP
of
IUP PT. Trimata Coal Percasa
N
Kilometer
0 0.5 1.0 1.5 2.0
Area of Interest
Figure 9: - PT. TCP with area of detailed investigation
The two seams of importance were identified by means of correlations, (Fig 11),
between the drill holes with regards to the typical characteristic properties of it, i.e.
elevations of top and bottom contacts, seam thickness and slopes. Cross-section
were generated to validate the observations made. (Fig 12)
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Inter stratigraphic Coal seam identification
Layers and thicknesses
± 18m
± 0.4m
± 3m
± 0.7m
± 21m
A Seam ± 9.0m
± 10m
A-Lower
Seam ± 4.0m
± 5m
± 0.3m
Figure 10: - Detailed stratigraphy indicting the relation of coal seams
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CORRELATION OF THE SEAMS WITHIN THE DRILL HOLES ALONG STRIKE AND DIP
Figure 11: - Correlation of drill holes within area of detailed drilling
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Figure 12: - Cross sections
EXPLORATION HISTORY
The PT.TCP exploration permit area forms part of the Geological map sheet
covering the Palembang area, South Sumatra. The map was compiled by S.
Page 34
– 31 – June 25, 2013 Gafoer, G. Burhan and J. Purnomo 1995. The scale in which it was done was 1: 250,000 and was published by the Geological Research and Development Centre (P3G) (Fig 13) NON-PENETRATING EXPLOTATION The information that was obtained from the above mentioned map, containing information regarding PT. TCP is that the coal-bearing formation is the Muaraenim Formation (Tmpm). Geological mapping of the area was undertaken by PT. Mineserve Citra Teknik (MCT) during July 2010. During the exercise no coal outcrops were identified within the concession area. PENETRATIVE EXPLORATION PT. Lithoindo started penetrative exploration work in February 2012 and 21 drill holes were drilled, of which 2 holes were fully cored while 19 were drilled using the ‗touch-core‘ method.
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LOCAL GEOLOGY OF THE PROPERTY
The following map, Geological map sheet of Palembang area, South Sumatra,
compiled by S. Gafoer, G. Burhan and J. Purnomo 1995 (scale 1: 250,000) was
used to assist with the geological interpretation/s of PT. TCP.
Based on information from the map and historic geological mapping the surface of
PT.TCP consists of marsh sediments (Qs). No bedrock formations are present in
the concession area as it is covered by the former.
Based on the map, figure 13, the lineaments from the Bentayan anticline (green
colored) and Muara Tungkal syncline (pink colored) can be extrapolated southeast.
Bearing this in mind it becomes evident that the TCP concession is situated on the
south-western limb of the now buried shallow dipping (± 5° SE) anticline.
The coal-bearing formation, the Muara Enim Formation (coded Tmpm) is of late
Miocene-Pliocene age and has a generalized strike in a direction NW-SE. This
formation, underlying PT. TCP subcrop in the north and towards the south of the
concession.
The Formation can be divided into for members, M1 at the bottom, M2, M3 and M4
at the top:
M4: - Consist of tuffaceous clay and sandy loam. Various coal seams do
exist within the member. The general color reflected is blue-green, probably
as the result of the presence of glauconite, a mineral indicative of continental
shelf marine depositional environments. It is normally found in dark green
rounded pellets with the dimension of a sand grain size.
M3: - This member is composed of sand and silt, blue-green in color and
grey-greenish clay. A brown sand horizon of between 3 and 6m is located
40m above the Mangus coal seam. Gas pockets are present.
M2: - Consist of clay- and siltstone with sandstone lenses. Coal seams
present in this member includes the Petai, Suban and Mangus seams. These
seams seem not to be continuous.
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Figure 13: - Geological map of the Palembang area, South Sumatra
M1: - This member is composed of sand, silt and clays varying from brown to
grey with little presence of glauconite and coal seams.
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Based on the drillhole information the lower members and bottom part of the M4
member cut out against the footwall high in the area of interest (fig 9) and only
seams A and A-Lower exist at shallow depths.
In the remainder of the concession five coal seams are present, i.e. seam A at the
top followed by the A-Lower -, B -, C-Upper seams with C seam at the bottom. The
qualities of these seams are reflected in Table
Table 3: - Seam qualities within PT. TCP
Seam TM ar IM adb Ash adb VM adb FC adb TS adb GCV adb
A 56.85% 12.32% 9.39% 44.30% 32.92% 12.17% 5156
B 57.56% 12.10% 11.51% 43.48% 32.92% 12.17% 5075
C-Upper 56.41% 12.80% 11.37% 42.20% 13.65% 12.19% 4936
C-Upper 55.53% 11.00% 17.27% 40.39% 30.43% 0.15% 4716
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EXPLORATION
TARGET GENERATION
In order to obtain viable targets within the concession area 21 holes were drilled and
geologically while the coal horizons were analyzed. Based on the results the target
area as depicted in figure 9 was identified. Based on the results detailed drilling
commenced in February 2013.
RESOURCE DATA (DRILLING)
A detailed drilling program was (fig 14) was initialized and 21 holes were drilled, of
which 18 were by means of ‗touch-coring‘ and 3 full-coring.
Figure 14: Detailed drilling program over preferred area
The grid used for drilling is roughly 280m in a south-eastern direction by 250m in a
north-eastern direction. The seams intersected were the A – and the A-Lower
Seams.
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– 36 – June 25, 2013
The total amount of holes drilled in 2013 that intersected the A Seam were 19 while
17 intersected the A-Lower Seam. Some of the holes drilled in 2012 in the direct
vicinity could be included for evaluation. The following table is a breakdown of the
holes available for the latter.
Table 4: - Drillhole data available for evaluation purposes
2013 2012 Available
Seam holes holes for eval.
A 19 9 28
B 17 3 20
During the drilling of the holes the coal seams were diamond drilled using size HQ,
while the intermediate formations were drilled with a wing-bit of the same diameter.
There is thus no information apart from the logs of the formations intersected
between the coal seams. The coal was sampled and sent to PT Geoservices in
Bandung, Java, Indonesia for analysis. The holes were also logged using
geophysical instruments (in wire-line) for accurate coal seam contacts. The down-
the-hole geophysical methods included Self-Potential (SP), Natural Gamma and
Gamma-Gamma. These logs were linked to the geological log in each drill hole. A
full set of the logs are attached in Addendum 2 – Raw Drillhole logs.
It is the view of the writer that the density of drill holes in the project area is
sufficient to determine a measured resource.
EXPLORATION QAQC PROCEDURES
Methodologies applied
The coal was cored and logged. The core was split in half. The one half was split
again to obtain a lab sample and a duplicate. The other half is preserved for
reference. The samples were sent to PT. Geoservices for analysis. The
intermediate layers were drilled using a wing-bit. The chips were logged, but not
kept. The down-the-hole geophysical logs are valid representations of the holes
drilled and the geological logs could be validated against it. The two sets of data
compare very well, increasing confidence in the true elevations of the coal seams.
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The method of logging were according to the internationally recognized standards,
which includes the method of sampling and preservation of reference material.
Based on the methodology as described in the previous paragraph it appears that
quality control as a whole during this phase fulfilled the minimum accepted
requirements.
Possible deficiencies
As no drilled material is available for quality checks or control the writer had to
accept the information as given. The geophysical logs that confirm the geological
logs and verifies the accuracy thereof nullified this deficiency.
LABORATORY/S
Accreditation
The laboratory, PT Geoservices in Bandung, is accredited. Based on what was
observed at the laboratory, the professionalism of the personnel and the processes
applied, it is felt that their work was of a high standard.
Procedures and standards
A visit to PT Geoservices was done in order to audit the laboratory to ensure the
procedures followed falls within the international standards set for the analysis of
coal. The results were satisfactory.
The document indicating the international standards normally used during analysis
is included as Addendum 3 - Laboratory Standards.
Reporting was done on air-dried, as received and dry ash free bases. These results
have been checked and validated. Tests performed include:
• Proximate Analysis
• Sulphur
• Specific Energy
• Relative Density
• Moisture
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– 38 – June 25, 2013
These analytical tests do not provide complete information on coal utilization.
Further testing is required to assess beneficiation, such as compression tests.
Certificates were issued for all samples analyzed and are attached in Addendum 4
– Chemical Analysis.
LABORATORY QAQC PROCEDURES
Methodologies applied
The methodologies for analyzing the coal are according set procedures, which are
kept at the laboratory for reference purposes. During the demonstration at the
laboratory the procedures were followed by the writer in the manual to ensure the
processes were carried out correctly.
Possible deficiencies
No deficiencies were found with the laboratory processes. The only deficiency that
was raised by the CP is that there was no check samples sent to another registered
laboratory to check for accuracy.
SUFFICIENCY AND REPRESENTIVITY OF AVAILABLE DATA FOR DETERMINING QUOTED
RESOURCES/RESERVES
Geological logging
The 28 holes were geologically and geophysically logged (See logs in Addendum 2
– Raw Drillhole Logs). The geophysical logs provide accurate contacts of the
various zones in each borehole, substantiated by the geological log adjacent to it.
The data can therefore be regarded as accurate and reflects the true setting of the
seams within each drill hole.
Data recorded
The data recorded during the drilling phase within each hole were sufficient for
using to calculate a reserve/resource for the deposit.
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– 39 – June 25, 2013
Consistency
The holes were all drilled and logged to the same standard and the data recorded
from each hole was found to be consistent throughout.
GEOLOGICAL INTERPRETATIONS
Lithology
The lithology of the area can be divided into three units, of which the lower two
units generally have strikes in a northwest-southeast direction. The strike direction
of the upper unit is more east-west.
SYMBOL ROCK UNIT LITHOLOGY
Qa Alluvium Accumulation of boulders, gravels, sand and silt, mud and clay, generally
Holocene Age unconsolidated, rounded until sub rounded, consist are detrital material
of acid until intermediate volcanic rocks, sandstone, claystone, meta-
morphic rocks, limestone and quarts, 3 - 15cm in diameter, 5 - 10m
thickness along main river valleys
Erosional
Tmpm Claystone Thinly bedded claystones, siltstones and tuffaceous sandstone with many
M-4 Belong to Muara coal interactions. The lower part are dominated by sandstone and clay-
Enim Formation stone, and the upper part (Hanging Layer) by tuffaceous claystone,
(Tmpm / M-4), Late greenish black, sandy claystone, brownish black, carbonaceous claystone
Miocene - Pliocene and siltstone (M-4), thickness up to 600m.
Age Claystone, grey to blackish grey in color, soft, high plasticity and elasti-
city, rather expanded, soapy lustre, carbonaceous, well bedded, N1450 -
3250E / 4 - 200, thickness 30 - 40cm per units
Page 43
– 40 – June 25, 2013
SYMBOL ROCK UNIT LITHOLOGY
Tmpm Claystone Silt stone, grey white to yellowish in color, soft, medium platicity and
M-4 Belong to Muara elasticity, well bedded, carbonaceous with thin coal horizons.
Enim Formation Sandstone, grey white to yellowish in color, partly tuffaceous, rather
(Tmpm / M-4), Late compact, well bedded, medium grained, contains glauconite and small-
Miocene - Pliocene scale parallel and cross lamination structures. Locally with animal burrows
Age infilled iron oxide.
Coal, black, dull to shinny lustre, brittle to hard, choncoidal fractured,
compact, eith units upto 5.6m thick, well bedded, sequence is generally
dipping 10 - 80° to the northeast or the southwest and the stiking is
nortwest-southeast.
Lignites, are brownish black, contain resin and carbonised plant debris.
This formation contains ore from the Niru, Lematang, Jelawatan,
Sukadamai, Bermi, Muara Tungal, Sungai Lilin, Benakat Babat, Toman,
Enim, Bentayan, Dawas, Keluang, and Kebon Seams.
Unconformity
Tma-T Tuff Intercalated bed of quartz sandstone, tuffaceous claystone, massive acid
Belong to Kasai For- pumiceous tuffs and conglomotate, thickness upto 250m.
mation (Tma-T), Quartz sandstone, yellowish white in color, rather soft and friable,
Pliocene-Pleisto- medium to coarse grained, made up of quartz 90%, pumice 8% and glass
cene Age 2%. Frequently crosss-bedded.
Tuffaceous claystone, brownish grey to yellowish white in color,
intercalation with claystone, well bedded, N1200 - 3200E / 40 - 200; 10 -
25cm thick units, massive, soft, high plasticity, lightly expanded, soapy
lustre, micro and macro scale parallel lamination and cross-bedding
structure.
Tuff, yellowish white in color, pumiceous, massive and cross-lamination
structures.
Conglomorate, medium to coarse grained, poorly sorted, sub-rounded
clasts of pumice, altered volcanics and quartz material.
Lignite, an intercalation and lenses in both the sandstone and claystone
units.
Unconformity
The syncline and anticline axial structures have a trend in a northwest to
southeastern direction, following the regional structural pattern and causing the
coal-bearing lithologies to follow the same pattern.
Mineralogy
Three characteristic types of the relatively uniform SE-Asian coals can be
discerned in the field:
- vitrain: massive bright coal, mainly vitrite with more than 95% vitrinite;
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- vitroclarain: dominant type; finely laminated bright coal, consisting mainly of
vitrite with some clarite/hydrite and clarovitrite; main macerals — vitrinite with
moderate exinite;
- (duro) clarain - durain: occurs subordinately; finely laminated coal with dull
lustre, includes vitrite+clarite/hydrite with duroclarite and vitrinertinite.
The characteristic maceral analysis and the low inertinite contents (mainly fungal
remains) indicate a tropical flora in a humid climate and relatively high water levels
during the decay of the vegetation. The intensive jellification of the plant tissue
points to relatively acid ground water, possibly with brackish or marine influences
(in higher sulphur coals). Detrital vitrinite may indicate the decay of plant material in
limno telmatic and open-marsh environments (Robertson Research, 1977).
ROBUSTNESS OF THE GEOLOGICAL MODEL
The geological model at present is the best scenario to date considering the
information available and other methodologies will not alter it. The datasets of 2012
and 2013 have different drill spacings, which influence the accuracy of the effective
extrapolation radius, but the results, cross-referenced against the 2-D model is still
within excepted limits (75%+ accuracy)
IMPACT OF POSSIBLE ALTERNATIVE INTERPRETATIONS
With the current dataset no alternative interpretations are possible.
QUALITY OF THE RAW DATABASE USED FOR RESOURCE ESTIMATION
The raw database was cross validated using the drillhole logs and the various
laboratory analyses to ensure all potential errors were eliminated. The final dataset
is attached as Addendum 5 – Raw Database
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RESOURCE/RESERVE ESTIMATES
ADEQUACY OF DATA DENSITY
Within the area of interest all the boreholes, 28 in total, were used during the
resource calculations. The following table reflects the borehole information:
Table 5 - Borehole data used for resource estimation
Coordinates A Seam A-Lower
BH-ID Total Coal Total Coal
X Y Z
Thick (m) Thick (m)
BP-1.04 417174.000 9720486.000 7.00 8.60
BP-1.05 419366.000 9718879.000 11.00 10.70
BP-1.06 422079.000 9717256.000 7.00 10.20
BP-2.06 417602.000 9718369.000 11.00 10.20 5.00
BP-2.07 419911.000 9716876.000 8.00 7.00
BP-3.02 416606.000 9722186.000 10.00 5.60 6.80
BP-3.03 414815.000 9721412.000 7.00 5.70 3.50
BP-3.06 416410.000 9721281.000 8.00 4.50
BP-3.07 417621.000 9718044.000 9.00 9.70
BSL-01 417741.770 9718626.197 14.184 11.00 4.10
BSL-04 417554.859 9719035.131 14.357 9.85 4.20
BSL-06 416967.177 9718934.557 13.374 10.90
BSL-07 417257.602 9719287.229 14.680 9.50 4.20
BSL-08 417427.989 9719433.000 14.631 9.90 4.40
BSL-09 416604.688 9719142.479 14.470 10.70
BSL-10 416796.274 9719384.365 14.773 10.90 5.40
BSL-11 416964.085 9719555.100 14.419 10.20 4.20
BSL-14 416378.561 9719539.101 15.166 10.20 3.80
BSL-15 416592.505 9719752.986 12.826 9.15 3.60
BSL-16 416785.844 9719916.460 14.060 8.40 3.80
BSL-17 416944.860 9720110.322 13.554 9.00 2.10
BSL-19 416403.181 9720118.651 14.609 8.90 4.20
BSL-20 416574.606 9720289.630 14.168 7.80 1.60
BSL-21R 415765.345 9720093.806 15.775 7.00 3.60
BSL-22 416025.329 9720314.235 15.102 7.80 4.20
GT-03 417370.505 9718815.262 12.440 9.60 4.30
GT-12 417141.224 9719740.334 13.939 9.40 4.20
GT-18 416228.770 9719941.217 14.603 9.30 4.30
The A Seam is represented by 28 boreholes (1 borehole per 147 ha) while the A-
Lower seam is present in 19 of those holes (1 borehole per 104 ha).
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When considering the continuity of the thickness over the area the data is
considered adequate for the calculation of resources. The following map indicate
the borehole positions within PT. TCP with the area of interest.
BOREHOLE LOCALITY MAP
of
IUP PT. Trimata Coal Percasa
N
Kilometer
0 0.5 1.0 1.5 2.0
Area of Interest
Figure 15: - Borehole positions with area of interest
IDENTIFICATION OF ANY AREAS REQUIRING FURTHER DRILLING/SAMPLING
The sample density in the target area is currently sufficient for determining
resources. Would mining be a viable option, more drilling should be done for
technical aspects.
To increase resources drilling along the strike direction of the drilling program in a
north-western direction could be considered.
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APPLICABILITY OF RESOURCE / RESERVE ESTIMATION METHODS
Based on the evaluation of the data for each seam within the detailed drilled area
the ranges indicated by omni-variography indicated that the drilling space is within
specifications to warrant measured and indicated resources with a high degree of
confidence. Due to this kriging could be applied with detailed geo-statistical
analysis, which once again would increase the confidence levels.
DATABASE VERIFICATION
The database was verified by checking it against the existing drillhole logs and
results obtained from PT. Geoservices.
The database was found fit to use in the modeling software.
GEOLOGICAL MODELS
Each seam was modeled independently and plotted. For the purpose of generating
cross-sections, all of the seams were then added into one geological model.
Various cross-sections were generated along dip and strike to evaluate the
geological model before each seam was used for the interpretation of values to
obtain grade distributions and reserves/resources.
MODELING METHODOLOGY AND CROSS VALIDATION OF MODELS
Modeling Methodology
Sample support
Due to the amount of samples available in both of the coal seams a minimum
of 4 samples were required to do an interpretation of values within a pre-
determined cell. Results obtained could then report to measured reserves,
indicated or inferred resources, depending on the estimation error of that cell.
Variography
The following parameters were used to generate the semi-variograms for
each seam:
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Parameter for Kriging: Selections Reasoning
Method of kriging Block kriging
Block sizes 125m x 125m ± Half the drill-grid size
Neighborhood for interpolation
Min 4
Max 30
sigma2 (data uncertainty) 0
Distance between interpolation 125
Variogram modeling Selections Reasoning
Type of variogram Global
Variogram model Linear with sill
Weighting method No of pairs
Number of lags 30
Lag tolerance (% of lags) 50
The results from the semi-variograms for each seam were as follows:
- A Seam
C0 - Nugget effect 0
C1 - Sill 1.798
A1 - Range 1477.5
A Seam : Semi-variogram
Figure 16: - A Seam semi-variogram
Page 49
– 46 – June 25, 2013
- A-Lower Seam
C0 - Nugget effect 0.3132
C1 - Sill 1.325
A1 - Range 2705.3
A Lower Seam : Semi-variogram
Figure 17: - A-Lower seam Semi-variogram
Page 50
– 47 – June 25, 2013
Kriging estimation
A Seam Thickness
<50%
50%
75%
90%
100%
A Seam Confidence
Level
Figure 18: - A Seam results
Page 51
– 48 – June 25, 2013
A-Lower Seam
Thickness
<50%
50%
75%
90%
A-Lower Confidence
100% Level
Figure 19: - A-Lower Seam results
Page 52
– 49 – June 25, 2013
Volume Estimation
The volumes were calculated by adding the volume of the blocks within the
specified ranges as set out above. The results reported to a table which was
exported to MS Excel for finalization.
The volume of a seam is the sum of all the reported reserve/resource
categories.
Cross Validation
For cross validation purposes the volume was also calculated within the geological
model between the upper and lower DTMs generated using 2-dimensional
modeling. The totals of the 2 volumes must be within 5% of each other to be
accepted as accurate.
During this exercise the volumes of the seams using 3-D and 2-D modeling has an
accuracy of 97%.
COAL QUALITIES
The coal qualities as generated during the resource estimation are reflected in the
following table:
IM (% Ash (% VM (% FC (% TS (% GCV (%
TM (% ar) RD HGI
Categories adb) adb) adb) adb) adb) adb)
A Seam
Measued 58.19 14.19 7.47 43.55 34.79 0.17 5134 1.41 88
Indicaed 57.89 13.89 8.14 43.35 34.62 0.17 5101 1.41 89
Inferred 57.81 13.47 8.82 43.37 34.27 0.17 5098 1.41 89
A-Lower Seam
Measued 57.44 13.37 10.41 42.39 33.82 0.19 5001 1.42 79
Indicaed 57.39 13.32 10.39 42.46 33.84 0.19 5004 1.42 79
Inferred 57.24 13.09 11.28 42.20 33.43 0.19 4969 1.43 79
CLASSIFICATION OF THE RESOURCES/RESERVES
Resources for this deposit were calculated to JORC standards; this involves
calculating resources to a measured, indicated or inferred status. These resource
categories are described below and are as outlined in ‗The 2004 Australasian Code
Page 53
– 50 – June 25, 2013 for Reporting Exploration Results, Mineral Resources and Ore Reserves (The JORC Code)‘. An ‗Inferred Mineral Resource‘ is that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, working and drill holes which may be limited or of uncertain quality and reliability. An inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource. The Inferred category is intended to cover situations where a mineral concentration or occurrence has been identified and limited measurements and sampling completed, but where the data are insufficient to allow the geological and/or grade continuity to be confidently interpreted. Commonly, it would be reasonable to expect that the majority of inferred Mineral Resources would upgrade to Indicated Mineral Resources, it should not be assumed that such upgrading will always occur. Confidence in the estimate of Inferred Mineral Resources is usually not sufficient to allow the results of the application of technical and economic parameters to be used for detailed planning. For this reason, there is no direct link from and Inferred Resource to any category of Mineral Reserves. Caution should be exercised if this category is considered in technical and economic studies. An ‗Indicated Mineral Resource‘ is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed. An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource, but has a higher level of confidence than that applying to an Inferred Mineral Resource. Mineralization may be classified as an Indicated Mineral Resource when the nature, quality, amount and distribution of data are such as to
Page 54
– 51 – June 25, 2013 allow confident interpretation of the geological framework and to assume continuity of mineralization. Confidence in the estimate is sufficient to allow the application of technical and economic viability. A ‗Measured Mineral Reserve‘ is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity. Mineralization may be classified as a Measured Mineral Resource when the nature, quality, amount and distribution of data are such as to leave no reasonable doubt, in the opinion of the Competent Person determining the Mineral Resource, that the tonnage and grade of the mineralization can be estimated to within close limits, and that any variation from the estimate would be unlikely to significantly affect potential economic viability. This category requires a high level of confidence (+90%) in, and understanding of, the geology and controls of the mineral deposit. Confidence in the estimate is sufficient to allow the application of technical and economic parameters and to enable an evaluation of economic viability that has a greater degree of certainty than an evaluation based on an Indicated Mineral Resource. Where pure geological data is used and the geological losses is more than 10%, the measured resource will rather reports to the probable reserve category whereas a geological factor of 15% or less, with all other modifying factors considered, will ensure a mineable or proven reserve. The choice of the appropriate category of Mineral resource depends upon the quantity, distribution and quality of data available and the level of confidence that attaches to those data. The appropriate Mineral Resource category must be determined by a Competent Person or Persons. Applying these standards to the Project Area allowed for Measured, Indicated and Inferred Resources to be computed for the PT.TCP prospect.
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– 52 – June 25, 2013
RESOURCES/RESERVES
The following table reflect the resources for each seam as obtained from the
model/s.
CONFIDENCE MODELLED
SEAM TOTAL AREA VOLUME RD ad TONNAGE
LEVEL THICKNESS
90% + 9,013,067 9.94 89,589,884 1.41 126,321,736
75% to 90% 8,238,664 9.28 76,454,806 1.41 107,801,276
A 50% to 75% 15,612,627 9.78 152,691,496 1.41 215,295,010
-50% 7,964,087 10.71 85,295,376 1.41 120,266,481
40,828,446 404,031,562 569,684,503
90% + 1,003,207 3.93 3,942,605 1.42 5,598,499
75% to 90% 5,057,556 4.12 20,837,129 1.42 29,588,723
A-
50% to 75% 11,719,895 4.67 54,731,908 1.42 77,719,309
Lower
-50% 1,862,890 4.20 7,824,139 1.42 11,110,277
19,643,548 87,335,781 124,016,809
TOTAL 60,471,994 491,367,343 693,701,312
The CONFIDENCE LEVEL in the above table reflects the category of the resources,
as reflected in the following table:
CONFIDENCE RESOURCE
SEAM VOLUME TONNAGE
LEVEL CATEGORY
90% + Measured 89,589,884 126,321,736
75% to 90% Indicated 76,454,806 107,801,276
A 50% to 75% Inferred 152,691,496 215,295,010
-50% Target 85,295,376 120,266,481
404,031,562 569,684,503
90% + Measured 3,942,605 5,598,499
75% to 90% Indicated 20,837,129 29,588,723
A-
50% to 75% Inferred 54,731,908 77,719,309
Lower
-50% Target 7,824,139 11,110,277
87,335,781 124,016,809
TOTAL 491,367,343 693,701,312
The following need to be pointed out. The tonnages were calculated using the
relative densities (RD) as determined by PT. Geoservices, who normally reported
the RD‘s ‗As Received‘.
The category, ‗Target Resources‘, is not officially defined. The ore resources, with
an estimation error of +50%, i.e. large error margin, resulted from the range of
interpolation where not enough data exists to verify the value of that block. It is
called ‗Target‘ as the potential exist that with more available data these resources
could be classified with higher confidence.
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– 53 – June 25, 2013
CONCLUSION
The deposit lends itself excellently to an opencast mining venture due to the near
surface shallow dipping coal seams. The quality of the coal falls typically within the
medium quality coals that have an export market and local domestic markets.
The 3 horizons have the potential of ensuring a medium to large scale coal deposit.
Once the mine goes into production it will ensure a long-term return for its owners
and investment groups.
PRELIMINARY RECOMMENDATIONS
In order to develop the ore deposit into a successful mining venture some work still
needs to be done. An approach of doing the work in phases will deliver the best
measurable results. Based on the all of the information available the following
phases are proposed:
- Within the areas of measured resources additional drilling is required to
strengthen the resource model where resource interpretation exceeds the
detailed drill spacing and secondly to obtain full core recoveries in one or more
places in order to do geo-technical analysis for the final pit layouts. Preliminary
pit design and its layout can be seen as a priority to convert the current
measured resources to proven reserves. Once drilling commences within the
planned mine area the results will be used to determine the most suitable slope
angles to ensure stability. Based on this layout the positions of the infill drill
holes can be planned. Such holes should have priority when drilling
commences.
- A second process that should be considered is a Bankable Feasibility Study
(BFS) of the project. This study would include various scenarios of mine
development, mining, processing, environmental, infrastructure, marketing and
financial models, from which the most viable scenarios will then be selected to
put the mine in production.
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JORC COMPLIANCE
This report was compiled based on data supplied by PT. Trimata Coal Perkasa. The
information obtained and contained herein was verified as far as possible by Mr. JF
(Faan) Grobbelaar, Principal Consulting Geologist. The information within this report
is based on an in-depth study of the deposit as done by PT. Lithoindo in which all
the geological and other factors relevant to this study were considered in sufficient
detail.
Mr. Faan Grobbelaar is a registered with the South African Council for Natural
Scientific Professions (Reg. No. 400283/06) and is a Member of the Geological
Society of South Africa. He is a Principal Consultant (being part of an Association
with International Accredited Professionals) and has sufficient experience which is
relevant to the style of mineralization and type of deposit situated in this concession
to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian
Code for Reporting of Mineral Resources and Ore Reserves”. Mr. Faan Grobbelaar
has 30 years’ experience in the exploration and mining of various commodities and
served as Chief Geologist for GFSA’s Coal Mines. A résumé is available in
Addendum 6 – Résumé for JF Grobbelaar
Page 58
– 55 – June 25, 2013
REFERENCES
Bishop, Michele G, (South Sumatra Basin Province – Indonesia: The Lahat/Talan
Akar-Cenozoic Total Petroleum System; 2000)
Harris, (Geology of the South Sumatra Basin; 2006)
Hillman, Danny, (Bona Situmorang: Research on Northern Sumatra (unpublished):
PhD on Sumatra Fault; 2006)
Horkel, Alexander, (Coal Deposits of Indonesia and the Philippines; 2004)
Mulyono Jeffrey, (An outlook on the Indonesian Coal Industry – A presentation at
the Coal seminar in Tokyo 2009)
PT. Lithoindo, (Exploration report on detailed study of PT. Trimata Coal Perkasa;
June 2013)
Various internet sites referring to the geological setting of Indonesia.
Names mentioned 17 people and organisations named in the text · linked when the evidence is strong
unresolved
org
PT. TCP
p.3 ×30
unresolved
org
PT. TCP's IUP
p.4
unresolved
org
PT. Trimata Coal Mighty
p.8
unresolved
org
PT. TCP. Principle
p.12
unresolved
org
Minister of Energy and Mineral Resources
p.14 ×2
unresolved
org
PT. TCP's IUP Point
p.18
unresolved
org
PT. Trimata Coal Perkasa N Kilometer
p.22
unresolved
org
PT TCP Boundary Figure
p.22
unresolved
org
PT. TCP CLIMATE South Sumatra
p.23
unresolved
org
PT. Trimata Coal Percasa N Kilometer
p.30 ×2
unresolved
org
PT. Mineserve Citra Teknik
p.34
unresolved
org
PT. Lithoindo
p.34 ×3
unresolved
org
PT. TCP. Based
p.35
unresolved
org
PT. TCP Seam
p.37
unresolved
org
PT Geoservices
p.39 ×6
unresolved
org
PT. Trimata Coal Perkasa.
p.57 ×2
unresolved
person
Faan Grobbelaar
p.57 ×2
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