CALGARY, ALBERTA -- (Marketwired) -- 06/20/13 -- Challenger Deep Resources Corp. ("Challenger" or the "Company") (TSX VENTURE: CDE) is pleased to provide an update on development progress at its Barito coal project in Central Kalimantan, Indonesia. The Barito project is comprised of two production licenses, KEM and ABBR. Following the completion of Challenger's private placement financing in April, 2013, an initial drill and mine planning program was initiated on the KEM production license.
The KEM drilling program commenced on April 20, 2013 and, up to June 16, 2013 a total of 25 holes have been completed.
-- Total metres drilled: 1,213m-- Open Hole metres: 1087m-- Coring metres: 126m
One Jacro 175 and one Down Hole Geophysical logging unit were mobilized to the site to conduct the program. An additional drilling rig is to be mobilized to the site in the near future.
The first phase of the drilling program was designed to test the package of seams from 4-8, as interpreted from surface mapping and test pitting.
The program commenced drilling on the interpreted outcrop line of seams 5 and 6.
Drill testing on seams 5 and 6 has now been completed and drilling is currently focused on seam 4. A total of 8 separate seams have now been intersected. The seams from South to North include:
-- Seam 4, 4A-- Seam 5-- Seam 6 and 6A-- Seam 7A, 7B, 7C
Average true thickness for each seam:
-- Seam 7c = 0.66m-- Seam 7b = 0.88m-- Seam 7a = 1.26m-- Seam 6 = 2.40m-- Seam 6a = 0.69m-- Seam 5 = 0.61m-- Seam 4 = 1.28m-- Seam 4A = 0.85m
Total thickness of package = 8.63 meters.
The drilling completed to date indicated that the zone covering seams 4-6 now comprises a package of eight seams. Seams 5 and 6 have now been tested to a maximum vertical depth of 65m and display excellent continuity, extending for a strike length of 600m through the KEM IUP and open along strike to the NW and SE. This confirms initial interpretations that the seams strike into neighbouring properties including the ABBR production license. The seams strike at 320 degrees and dip at approximately 30 degrees to the NE and are located on the western limb of a broad, shallow synform structure. The discovery of additional seams has the potential to increase the overall scope of the Barito project.
Analytical results from the drilling confirm the coal quality of seam 6 compared to the previous outcrop samples. 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.
Drilling overall has confirmed:
-- seam continuity-- seam thickness-- seam quality-- the discovery of additional seams not found in previous outcrop mapping
Strategy and Immediate Program
The goal of the initial program is to define seam geology and geometry with confidence for the zone covering seams 4-8 in order to enable completion of feasibility studies including open pit optimization and scheduling for KEM stage 1 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 4-8 zone above and complete detailed topographic surveys.