Challenger Deep Resources Corp.
TSX VENTURE : CDE

Challenger Deep Resources Corp.

November 16, 2011 07:30 ET

Challenger Announces Tabang Project Exploration Results

CALGARY, ALBERTA--(Marketwire - Nov. 16, 2011) - Challenger Deep Resources Corp. (TSX VENTURE:CDE) ("Challenger" or the "Company") is pleased to provide an exploration update on the Pelangi property, one of the four properties in the Company's Tabang Coal Project located in East Kalimantan, Indonesia.

The Pelangi Mining license is in the "Local Announcement" stage with the IUP Exploration permit currently in process.

The property covers an area of approximately 4,000 hectares and is located approximately 10km south of Challenger's ATRP property. The project covers the Balikpapan formation which is prospective for coal in the quality range of CV 4,000 – 6,000 Kcal/kg (Adb) and is known to host large resources of coal in the general Tabang area.

The phase 1 program of mapping, outcrop/test pit sampling and analysis has been completed. This program is the precursor to a phase 2 drilling program which will commence upon granting of the IUP Exploration permit and other permitting as required. In the interim, work will continue on geological interptretation and drill hole planning.

Up to the end of October, 2011, exploration has resulted in the discovery of 32 coal outcrops representing multiple seams in two separate zones with the main area of coal outcrop containing multiple seams covering an area of 5 x 2km. The coal seams are generally flat dippping an average angle of 10° to south and southeast. The thickness of the seams varies from 0.15 – >6.0 meters.

A total of 27 samples were collected and analysed from outcropping coal and 6 test pits. Coal quality indicates middle to upper Balikpapan formation.

Coal Quality of the Pelangi Property

No Thickness (m) Sample Code TM
%,AR
IM
%,ADB
Ash
%,ADB
VM
%,ADB
FC
%,ADB
TS
%,ADB
GCV (Kcal/Kg)
ADB
Lab
1 >0.25 CDR-KP6-OC-12022011-KH01 27.99 17.54 2.45 41.98 38.03 0.18 5320 SGS
2 >1 OC RAB 1 48.41 20.34 4.56 38.33 36.77 0.19 4778 SGS
3 >2.20 OC RAB 2 44.85 17.32 3.87 41.48 37.33 0.16 5105 SGS
4 ? OC RAB 5 43.94 18.60 8.86 37.06 35.48 0.40 4698 SGS
5 >2.30 CDR-PL-OC-160611-YN01 40.76 15.19 5.48 41.55 37.78 0.2 5094 SGS
6 >2.60 CDR-PL-OC-160611-YN02 43.44 16.40 4.52 41.69 37.38 0.17 5275 SGS
7 >2.40 CDR-PL-OC-160611-YN03 42.21 15.36 4.69 39.94 40.02 0.23 5109 SGS
8 0.50 CDR-PL-OC-180611-YN04 35.17 12.68 16.60 34.42 36.30 0.49 4497 SGS
9 0.50 CDR-PL-OC-180611-YN05 39.22 15.00 2.23 42.63 40.15 0.29 5521 SGS
10 0.70 CDR-PL-TP-200611-YN01 40.04 14.84 8.32 37.52 39.32 0.48 5140 SGS
11 >2.10 CDR-PL-OC-250611-YN06 32.1 13.38 1.50 46.68 38.45 0.18 5831 SGS
12 0.40 CDR-PL-OC-250611-YN07 33.9 12.19 9.91 39.58 38.32 0.33 4979 SGS
13 >0.40 CDR-PL-OC-250611-YN08 34.21 13.20 7.28 39.28 40.24 0.33 5107 SGS
14 >0.30 CDR-PL-OC-280611-YN09 31.54 14.43 10.13 39.08 36.36 0.31 5023 SGS
15 >1.10 CDR-PL-OC-280611-YN10 32.49 13.67 4.53 40.94 40.86 0.25 5364 SGS
16 >0.30 CDR-PL-OC-020711-YN11 39.39 16.06 1.46 40.97 41.52 0.35 5532 SGS
17 >1.00 CDR-PL-OC-070711-YN12 37.58 13.78 8.73 37.54 39.95 0.27 4854 SGS
18 >0.60 CDR-PL-OC-070711-YN13 40.96 17.08 2.18 39.49 41.25 0.20 5333 SGS
19 0.35 CDR-PL-TP-130811-DW1 35.64 12.19 17.35 34.93 35.53 0.3 4493 SGS
20 0.3 CDR-PL-TP-140811-DW2 35.65 14.2 9.04 39.42 37.34 0.28 5017 SGS
21 2.1 CDR-PL-TP-200811-DW3 36.44 14.22 1.79 43.17 40.82 0.23 5565 SGS
22 3.5 CDR-PL-TP-120911-DW4 36.43 16.02 3.5 41.96 38.52 0.16 5377 SGS
23 >2.5 CDR-PL-TP-210911-DW5 36.98 14 5.61 42.27 38.12 0.22 5285 SGS
24 >6 CDR-PL-TP-141011-DW6 A 45.33 16.28 6.81 39.84 37.06 0.25 4794 SGS
25 >6 CDR-PL-TP-141011-DW6 B 42.99 14.14 8.58 43.32 33.96 0.2 4901 SGS
26 >6 CDR-PL-TP-141011-DW6 C 45.23 14.69 3.22 43.89 38.2 0.13 5376 SGS
27 1.05 CDR-PL-TP-171011-DW7 36.1 12.71 21.3 34.35 31.65 0.28 3952 SGS

Challenger's Tabang Project encompasses four properties, ATRP and Pelangi which are under the terms of Conditional Sale and Purchase Agreements (CSPAs) and two properties under exclusive MOUs. ATRP received the first IUP Exploration permit and accordingly is the first property to have been drilled. Challenger is preparing for the IUP Mining license on ATRP and will commence drilling on Pelangi once the IUP Exploration permit has been issued for that property. CSPAs for the two other Tabang Project properties are being prepared.

It is Challenger's intention to begin mining operations on the ATRP property first utilizing a local short-haul road and jetty facilities to be constructed. As the other Tabang Project properties are advanced, the intention is to link all properties with a common haul road and to construct a larger jetty and loading facility further down-river from ATRP.

All outcrop and test pit samples for the Pelangi property were processed by SGS Coal Laboratories, Samarinda, East Kalimantan. Industry standard Quality Control and Quality Assurance protocols were employed in the sample acquisition, preparation and analysis procedures.

The Qualified Person (as defined by NI 43-101) responsible for the review and approval of the technical material presented in this news release is Mr. Andre Talaska, a director of PT Bestindo Energy, a wholly owned subsidiary of Challenger.

Challenger also announces that Mr. Brent Stevenson has resigned from Challenger's board of directors to pursue other business endeavours. The Board wishes to thank Mr. Stevenson for his contributions over the past years.

About Challenger

Challenger Deep Resources Corp. is an exploration company focused on the Indonesian coal industry. Challenger's business plan is to acquire, explore and to bring its viable coal projects into production. Challenger has an experienced Indonesian exploration and mining team with offices in Calgary, Singapore and Jakarta.

READER ADVISORY

Statements in this press release may contain forward-looking information including, statements regarding expected exploration activities and property related agreements and permits. Any statements that are contained in this press release that are not statements of historical fact may bedeemed to be forward-looking statements. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Challenger. Factors that could cause the actual results to differ materially from those in forward-looking statements include, granting of exploration permits, surface access, mining and other licenses from Indonesian regulatory authorities, preliminary exploration results, the continued availability of capital and financing, and general economic, market or business conditions in North America and in the Asia Pacific region. The reader is cautioned not to place undue reliance on any forward-looking information. There can be no assurance that the proposed exploration programs in Indonesia or other project acquisitions will be completed or, if completed, will be successful.

The forward-looking statements contained in this press release are made as of the date of this press release, and Challenger does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of accuracy of this news release.

Contact Information

  • Challenger Deep Resources Corp.
    Ranjeet Sundher
    President
    +65-6220-7745

    Challenger Deep Resources Corp.
    Kirk Gamley
    Investor Relations
    604-689-7422

    Challenger Deep Resources Corp.
    Mas Kobuchi
    Investor Relations
    604-689-7422
    www.challengerdeep.ca