nice article from proactive investors

Pan Asia Corporation (ASX: PZC) is on track to deliver an updated JORC Resource for its Transcoal Minergy Coal Project (TCM Project) in Indonesia with the completion of a phase four drilling program.

Demonstrating the potential of the project, Pan Asia has previously defined an exploration target of 200 to 220 million tonnes of coal for TCM.

The final three holes of the program intersected the target coal seams as expected. All holes have been surveyed, geophysically logged and cored through the target seams to obtain coal quality data, with the quality results of the last two holes expected within the next three weeks.

Geological interpretation of the intersected coal in the last two holes conforms to the known coal formation. Coal quality is expected to be in line with all quality data obtained to date.

Alan Hopkins, chief executive officer, said: “A terrific result. We now look forward to obtaining the updated JORC and also the effect of the nearby holes on the current mine design.”


Expected news flow

An update to the market on economic mineralisation will be made once all coal quality analysis is received.

A further update will be provided on completion of the re-optimisation of the mine design which will be updated in the Feasibility Study.


Ticking boxes at TCM

Earlier this month, Pan Asia received official foreign owned company status for the TCM Project for the conversion to a PMA company.

Locally a PMA company is known as “Penanaman Modal Asing”, with the approval received from the Capital Investment Coordinating Board.

What the approval signifies is that Pan Asia can now move forward with plans for the incoming of substantial foreign investment to development the project – with the company actively engaged with parties interested in participating in development.

What is significant for Pan Asia, when compared to other developing coal projects around the world, is that the company is operating in one of the best thermal coal exporting regions in the world.

To put this in perspective, the cost to develop a coal mine in Indonesia is around US$56 per tonne, with these metrics very favourable when compared to Canada (US$90 per tonne), South Africa (US$99 per tonne) and even Australia (US$141 per tonne).


Potential re-rating in Pan Asia

Recently Hopkins spoke exclusively to Proactive Investors from Jakarta on the next big re-rating event for investors to look out for, and said that the company will look for the best deal with a potential offtake or development partner to advance the project to the next level.

“When we do that, that’s when we’ll lock in the value into the project and then into the company. As long as we do that deal on good terms, which we think we’ll be able to do, then that’s the big re-rating event for us.”


http://www.proactiveinvestors.com.au/companies/news/31867/pan-asia-corporations-drilling-success-at-tcm-provides-catalyst-for-increased-coal-resource-31867.html