September 11, 2008
An initial seven widely spaced drill holes have been completed, confirming the quality of the coal. Coal outcrops up to 2.4 metres thick had been mapped prior to the drilling which intersected up to three coal seams, with a maximum thickness of 3.7 metres. Four additional nearby concession areas are under application, which considerably expands the resource potential at Mandul Island. Once these have been granted an extensive 3,000 meter drilling program over 40 holes will be undertaken.
The analysis of the initial drilling indicates the coal at Mandul is a high moisture, sub-bituminous coal, with
inherent moisture of between 13.40-15.14%, ash between 7.12-12.79% and a calorific value of between 4,739-
5,455 kcal/kg.