Challenger Deep Resources Corp.
TSX VENTURE : CDE

Challenger Deep Resources Corp.

February 13, 2012 07:30 ET

Challenger Coal Project Developments

CALGARY, ALBERTA--(Marketwire - Feb. 13, 2012) - Challenger Deep Resources Corp. ("Challenger" or the "Company") (TSX VENTURE:CDE) is pleased to provide an exploration update for its recently acquired DPK Coal Project (Dec 16/11 News Release) and a development update for its Tabang Coal Project.

DPK Project

The DPK Project is an IUP Exploration license with an area of approximately 12,830 hectares and is located approximately 200km North of Samarinda, Kalimantan. There are 2 active large coal mining operations (PT Kaltim Prima Coal and PT Perkasa Inaka Kerta) in the area. The project area immediately adjoins PT Kaltima Prima Coal and is located approximately 40km from the coast.

The DPK Project covers the Mangkupa, Kedango, Lembak, Balikpapan and Pulau Balang Geological Formations.

Phase 1 exploration consisting of geological mapping and coal outcrop exploration and sampling is presently underway and is initially focused on the Mangkupa formation. The latest exploration has resulted in the discovery of 3 additional coal outcrops in the northern part of the property occupied by the Mangkupa formation. These outcrops are located on the eastern limb of an interpreted NNW-SSE trending anticlinal structure. This anticlinal structure is in turn displaced by a series NE-SW faults.

Initial reconnissance work on the DPK Project, reported in the December 16, 2011 news release, discovered coal outcrop in the southern part of the property to the south and to the west of this newly discovered structure.

Geological interpretation now indicates that both limbs of the anticline host multiple coal seams with at least 2 seams on each limb discovered to date. The new coal sample assay results, set out below, continue to confirm the potential for high quality thermal coal on the property within the Mangkupa Formation.

The projected strike of potential interest indicated is at least 4.5km on the east side of the anticlinal structure and 7km on the west side.

This phase of geological work is continuing on the Mangkupa formation and an additional geological team is being mobilized to assess the potential of the Balikpapan and Pulau Balang formations within the DPK Project area.

DPK Coal Quality Results
Sample
Description
Code
FORMATION
AND
POSITION
TM IM Ash VM FC TS GCV (Kcal/Kg)
%AR %ADB %ADB %ADB %ADB %ADB ADB AR
CDR - DPK - OC 2 - 13012012 - NJB Mangkupa
Formation,
inside IUP
7.45 4.49 9.44 30.96 55.11 0.5 6,656 6,450
CDR - DPK - OC 3 - 15012012 - HN Mangkupa
Formation,
inside IUP
7.1 3.13 19.7 29.54 47,63 0.67 6,248 5,992
CDR - DPK - OC 4 - 16012012 - HN Mangkupa
Formation,
inside IUP
8.08 4.25 7.44 31.06 57.25 0.6 7,138 6,852

Tabang Project Update

Work on the Company's Tabang Project has been focused on pre-production elements of the ATRP property development plan. Challenger's immediate objective for the Tabang Project is to obtain a production license for the ATRP property.

The primary requirements to obtain the ATRP production license are the preparation, submission and formal presentation of a comprehensive Exploration Report, a Feasibility Study and the AMDAL study which assesses and addresses the socio-economic impact of the mine development. Challenger has completed both the Exploration Report and the Feasibility Study and the initial submission of these documents has been made. The AMDAL study involves multiple stages, the more significant of which is the socialization study which has been completed. The remaining phases of this report are currently being prepared.

Challenger anticipates completion of the production license filing and presentation phase within approximately 60 days. Issuance of the production license is dependent upon governmental review, the timing of which is uncertain.

Challenger is also investigating other acquisitions both within the Tabang Project area and in other areas.

"We are very excited about the high-quality thermal coal discovered on the DPK property and its potential for coking coal discovery as we continue to explore in this new project area," stated Ranjeet Sundher, President and CEO of Challenger. "We are also pleased to be able to report on the substantial progress made in the production licensing phase of our ATRP property as the initial phase of our Tabang Project development," he continued.

All outcrop samples 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, verification 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. Readers are cautioned that any potential quantity and grade disclosed in this press release is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the DPK Project being delineated as a mineral resource.

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.

CAUTIONARY STATEMENT

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

READER ADVISORY

Statements in this press release may contain forward-looking information including, statements regarding expected exploration activities and permitting. Any statements that are contained in this press release that are not statements of historical fact may be deemed 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 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.

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 or Mas Kobuchi
    Investor Relations
    604-689-7422
    www.challengerdeep.ca