Challenger Deep Resources Corp.
TSX VENTURE : CDE

Challenger Deep Resources Corp.

September 13, 2011 07:30 ET

Tabang Coal Project

CALGARY, ALBERTA--(Marketwire - Sept. 13, 2011) - Challenger Deep Resources Corp. ("Challenger" or the "Company") (TSX VENTURE:CDE) is pleased to report on the continuous development of its Tabang thermal coal project in East Kalimantan, Indonesia. The Tabang Project consists of two exploration licenses (ATRP and Pelangi) representing an area of 5,610 hectares with two additional license acquisitions under negotiation which could potentially add an additional 7,540 hectares. The Tabang Project strategy is to establish a mineable resource of varying coal quality to support a blending operation utilizing common Challenger owned infrastructure. An update on the exploration of the ATRP property, the first of the Tabang Project properties to be issued an IUP Exploration Permit, is provided below.

ATRP Property

Exploration activity completed to the end of August on the 100% owned ATRP property includes the completion of coal outcrop mapping of the entire property, further test pitting and scout drilling. To date, 59 outcrops have been found and 63 test pits completed to expose the coal seams.

To date a total of 105 drill holes for 3,026m of open hole have been completed and 45.8m of touch coring drilling were completed to establish the broad continuity of seams. Spacing was mostly on a 400m grid with a closer grid pattern of 100m and 200m in selected areas.

Drilling, outcrop mapping and test pitting has established 7 continuous seams over an area of approximately 6 x 4km in a broad syn-form structure.

Coal Quality

The latest drilling and test pitting, since the last results were reported (May 13/11) continue to return coal quality data similar to that which was previously reported. Assay results for the latest outcrop, test pit and drilling samples are set out below:

No Remark TM IM Ash VM FC TS GCV
(Kcal/Kg)
HGI
%,AR %,ADB %,ADB %,ADB %,ADB %,ADB ADB
5 Outcrops, channel 20.41 15.85 1.68 45.09 37.34 0.18 6,222 56
6 Outcrops, channel 19.43 16.46 2.60 43.56 37.36 0.29 6,081 57
7 Outcrops, channel 16.64 13.08 2.38 51.37 33.19 0.20 6,669 59
8 Outcrops, channel 19.56 15.29 3.30 43.47 37.96 0.22 6,082 63
9 Outcrops, channel 20.40 15.76 2.70 42.66 38.96 0.23 6,078 60
10 Outcrops, channel 21.42 16.92 2.41 41.62 39.05 0.24 5,977 57
11 Outcrops, channel 20.30 12.32 4.16 43.01 40.51 0.24 6,344
12 Outcrops, channel 17.41 10.32 2.03 51.87 35.78 0.18 7,013
18 Outcrops, channel 18.50 11.89 3.27 45.51 39.33 0.18 6,451
26 Test pit, seam E 24.34 14.80 1.20 36.58 47.42 0.24 6,148
27 Test pit, seam B 12.91 7.55 3.67 60.68 28.10 0.18 7,444
28 Test pit, seam A 22.13 14.89 3.24 41.90 39.97 0.27 6,129
29 Test pit, seam D1 19.38 11.60 2.71 45.81 39.88 0.31 6,426
30 Test pit, seam E 17.99 11.14 2.47 50.15 36.24 0.17 6,724
31 Test pit, seam F 16.66 10.19 2.32 53.63 33.86 0.21 6,900
37 Test pit, seam A 22.83 12.90 2.31 39.15 45.64 0.24 6,208
38 Test pit, seam B 20.83 15.41 3.06 42.70 38.82 0.21 6,195
39 Test pit, seam A 22.08 15.22 2.31 36.85 45.62 0.18 6,142
40 Drilling, seam C 18.12 11.00 10.55 43.51 34.94 0.26 6,042
41 Drilling, seam E 19.71 10.84 7.39 44.36 37.41 0.26 6,238
42 Drilling, seam F 18.59 10.16 10.66 46.92 32.26 0.20 6,262
43 Drilling, seam G 18.65 12.47 6.45 45.62 35.46 0.21 6,287
44 Drilling, seam A 14.00 8.86 21.05 45.09 25.00 0.21 5,577
49 Drilling 14.46 8.89 9.54 51.12 30.45 0.18 6,576
50 Drilling 13.80 7.31 7.12 58.60 26.97 0.17 7,090
51 Drilling 8.79 6.07 12.76 58.47 22.71 0.15 6,911
52 Drilling 16.87 9.25 2.80 53.09 34.86 0.16 6,953

The thickness of coal sampled varies between 0.15 – 1.4 meters and the dip is shallow, varying from 6 – 10 degrees.

Average coal quality based on all assayed samples to date is as follows:

ATRP TM
%,AR
IM
%,ADB
Ash
%,ADB
VM
%,ADB
FC
%,ADB
TS
%,ADB
GCV
(Kcal/Kg)
ADB
Min 8.79 6.07 1.18 33.89 22.71 0.15 5,577
Max 24.34 16.92 21.05 60.68 47.42 0.35 7,090
Average 19.00 12.53 4.36 45.99 37.12 0.23 6,385

Based on exploration data to date, using coal outcrop, test pitting and drill hole intersections, Challenger intends to proceed with an application for an IUP Operation-Production permit which will position the Company to initiate production assuming the necessary permits and pre-production studies are received and support that activity. The Company has not yet commissioned an NI 43-101 compliant resource calculation and accordingly cannot confirm the existence of a mineable resource at this time. The preliminary estimations and results to date have encouraged the Company to undertake a number of initiatives which will be implemented in the coming months to further advance the ATRP property and Challenger's overall Tabang Project strategy.

IUP Operation Production

Processing of the ATRP IUP Operation-Production will commence in September/October. This process is expected take up to 6 months and will include an Environmental Assessment and Pre Feasibility Study.

Infrastructure Permits

Permit processing for key infrastructure including haul road, jetty and stockpile required for the transport and loading of coal for the Tabang Project is to commence September/October.

Mining Economics

The key characteristics of the ATRP coal which the Company believes will enable economic extraction include: flat dipping seams, soft overburden, extensive continuity of seams and high quality of coal.

The ARTP seams are relatively thin which is typical of the Batu Ayau formation however, the Company is of the view that the above characteristics will combine to enable the potential economic extraction of coal from this property.

Continued Tabang Project Development

The Company's Pelangi property, located approximately 10km south of the ATRP property, is in the process of obtaining an IUP Exploration permit which will allow for further drilling. Two additional potential acquisitions have been identified within the Tabang Project area and are under evaluation and negotiation.

Challenger will continue with further drilling on the ATRP property, including deeper exploration drilling, while the status of the Pelangi IUP Exploration permit is progressed and the other potential acquisitions are pursued which would then position Challenger to commence drilling operations on those properties.

Commenting on the Company's progress to date, Mr. Ranjeet Sundher, President and CEO of Challenger, stated: "We are very pleased with the continuous progress on the ATRP property specifically and with the development of the Company's broader Tabang Project area strategy. Our confidence in the coal quality and volumes discovered to date have resulted in our efforts to expand our project area land holdings and to initiate an aggressive campaign to develop these resources and to pursue the various regulatory approvals required to support this development. In addition to developing the Tabang Project, Challenger is actively reviewing other exploration and production acquisition opportunities."

All outcrop, test pit and drill 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 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 is also pleased to announce the appointment of Mr. Karim Teja as Chief Financial Officer of the Company. Mr. Teja is a Certified General Accountant and has over 12 years of success in public company management, financial statement preparation, financings, investor relations, mergers and acquisitions, securities and exchange regulations and foreign currency transactions. Mr. Teja's appointment follows the resignation of Mr. Ian Thomson who is leaving to pursue a new position. Challenger wishes to thank Mr. Thomson for his years of service and wishes him well in his new position.

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
    65-9752-5082

    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