Challenger Deep Resources Corp. (TSX: V.CDE, Stock Forum) said as a part of the KEM drilling program a total of 1,213 metres were drilled in 25 holes at its Barito coal project in Central Kalimantan, Indonesia.
The Barito project is comprised of two production licenses, KEM and ABBR.
According to the Challenger Deep Resources press release, the first phase of the drilling program was designed to test the package of seams from four to eight, as interpreted from surface mapping and test pitting. The program commenced drilling on the interpreted outcrop line of seams five and six.
Drill testing on seams five and six has now been completed and drilling is currently focused on seam four. A total of eight separate seams have now been intersected.
Once the seam distribution is more fully understood a comprehensive program of additional test pitting and drilling is planned to type the coal quality of all the seams.
The goal of the initial program is to define seam geology and geometry with confidence for the zone covering seams four to eight in order to enable completion of feasibility studies including open pit optimization and scheduling for KEM stage one production.
The clarification of the seam geological model in KEM will enable cost effective exploration on the seam package into the ABBR license. The immediate program is to complete drill evaluation of seams four to eight zone above and complete detailed topographic surveys.
Challenger Deep Resources is an exploration company focused on the Asian coal industry.
On Thursday, Challenger Deep Resources rose 12.5% to $0.18 a share. The company had a market cap of seven million, based on 39.3 million shares outstanding.