Challenger Deep Resources Corp.
TSX VENTURE : CDE

Challenger Deep Resources Corp.

July 13, 2011 07:30 ET

Challenger Receives Tabang Project IUP Permit

CALGARY, ALBERTA--(Marketwire - July 13, 2011) - Challenger Deep Resources Corp. (TSX VENTURE:CDE) ("Challenger" or the "Company") is pleased to advise that the mining business licence, or IUP Exploration Permit, for its Tabang coal property has been granted.

The IUP Permit has been granted for an area totalling 2,960 hectares on Challenger's 100% owned Tabang project in East Kalimantan, Indonesia.

This IUP permit gives the rights to the holder to carry out full coal exploration activities within the concession area for a period of three years until May 13, 2014, which may be extended if required. This permit also gives the rights to obtain a coal exploitation license (IUP Operation-Production) if the prospect proves to be economical for commercial production.

On approval of a mine feasibility study, the Company will be able to transition the IUP into the exploitation stage under an IUP Operation - Production, with the right to conduct mining production on this property for 20 years, with the potential for two further ten-year extension periods.

Challenger's work on the Tabang project to date has confirmed the presence of at least seven flat-dipping seams of CVC(adb) 5,500 – 6,500 kcal/kg coal. All of the coal seams discovered to date are located on the northern half of the property. Challenger's exploration team is currently conducting more extensive surface exploration of the southern half of the property.

Challenger's initial reconnaissance drilling program (Press Release dated May 13, 2011) confirmed coal quality and the coal seam orientation and consistency on the Tabang program with 14 shallow holes (25 – 50 metres) for a total of 521 metres of drilling.

Challenger has now commenced a more extensive exploration drilling program of the previously discovered multiple coal seams upon the issuance of this IUP.

Challenger plans to conduct an environmental assessment and a pre-feasibility study later this year as part of the prerequisites for the application to obtain the IUP Operation – Production (coal mining production) license.

Tabang Regional Exploration

Challenger is negotiating the acquisition of additional prospects within the Tabang general area as part of its strategy to expand the present landholdings to include coal resource potential from the Ujoh Bilang, Batu Ayau and Balikpapan formations (upper, lower and middle). Challenger's goal is to establish a significant land portion in the Tabang area to support a blending operation to maximize returns by combining coal of different quality whilst minimizing overall mining costs.

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, P.Geo., an officer and director of Challenger's wholly owned subsidiary, PT Bestindo Energy, through which Challenger's Indonesian activities are conducted.

"We are, of course, very pleased to receive the IUP Permit for this property," stated Ranjeet Sundher, President of Challenger. "One of our key strengths is our ability to indentify, acquire and manage the regulatory process related to our exploration projects. Moving our Tabang project from the permit application stage to the actual permit issuance in the short period of time during which we have held this property is a reflection of that strength."

Challenger also announces the grant of options to purchase 82,000 shares to a director of the Corporation under the Corporation's shareholder approved Stock Option Plan. The options have an exercise price of $0.57 and are for a five year term and vest immediately.

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. 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, continued exploration results, the establishment of commercial quantities of coal, availability of new acquisitions on commercially acceptable terms, 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