COALspot.com - Realm Resources Ltd. has announced that it has completed the Project Study for the Katingan Ria Project in Central Kalimantan, Indonesia.

According to statement, the study, independently reviewed by Xenith Consulting Pty. Limited, supports the undertaking of a further drilling programme to increase geological confidence to assist in completing a bankable feasibility study.

Project - Highlights
The project’s base case open-cut 3 Mtpa mine plan with a designed life of 15 years, is technically viable

The coal deposit is structurally simple and with a large area of relatively homogenous low strip-ratio coal minimizing mining costs and establishing the projected life of mine FOB operating costs at USD39.20/t

The quality of a raw coal product should satisfy the specifications for Indonesian 4,200kcal/kg (GAR) low sulphur coal and be readily accepted in rapidly growing markets in China, India, Korea and Thailand

Low Project start-up capital estimate of USD 23M, implying a capital intensity of less than USD10 / annual tonne, thereby minimizing investment risk

Permitting is well advanced, supporting forecast production and ramp up from mid-2013

The base case mine plan NPV of USD156M (100%) at a 10% discount rate is most sensitive to coal price and least sensitive to capital expenditure

Potential to increase the quantity and quality of the resource definition and to better optimize the mine’s economics through additional exploration and engineering work.

The Project is located near the town of Tumbang Samba in Central Kalimantan, Indonesia, approximately 175 km North West of the regional capital of Palangkaraya. The Project mining concession covers an area of some 4,258 ha within an area that has already been subject to commercial forestry operations.

The statement further said that, the project’s base case is designed to mine 1 to 1.5 Mtpa of coal ramping up to 3.0 Mtpa within three years. It is proposed to use a truck and excavator fleet to produce a thermal coal product for the domestic and export markets, initially over a period of 15 years.

The mined coal would be transported from the mine site to the Pegatan Anchorage at the southern coast of Central Kalimantan for loading to ocean shipping vessels and export. The total transportation distance to the anchorage (including road and barge) is approximately 450kms.

About Realm Resources Ltd
Realm's strategy is to create shareholder value through exploration and development of quality metal and minerals sector projects. The Company’s primary focus is on the acquisition and development of the Katingan Ria thermal coal project coal in Indonesia. On 6th October 2011, Realm announced the acquisition of Kalres Limited and through Kalres acquired 51% of PT Katingan Ria (PTKR), an advanced thermal coal exploration project located in Central Kalimantan, Indonesia, for a total transaction value of US$12.6 million and 15 million Performance Rights. The Katingan Ria Project has the potential to establish Realm as a thermal coal producer within the next 12 months in a nation that has an established coal industry; and is ideally located to export to the high demand southeast Asian markets. Kalres is party to a Master agreement under which Kalres can acquire up to a 75% interest in PTKR.

In addition, Realm has platinum group metals (PGM) in South Africa an aluminium dross treatment plant in South Africa.
Source: Realm Resources Ltd