The Berau Coal Project located approximately 40 kilometres south-west of Tanjungredeb (Berau) in Indonesia and approximately 350 kilometres north of Balikpapan (the capital city of Kalimantan). 

A recently completed drilling campaign[1] has confirmed the presence of a JORC Code compliant Inferred Thermal Coal Resource of 4.6 million tonnes of calorific value 5,800 kcal/kg.  The coal has low ash (5%– 6%) and low sulphur (0.55% – 0.70%) and Inherent Moisture of 13 % - 15%.

Resource modelling also indicates a target mineralisation of an additional 4 to 5 million tonnes of calorific value 5,200 – 6,000 kcal/kg, with the same properties +/-10%. 

The results are summarised in the table below:

(The potential quantity and grade of the target mineralisation coal is conceptual in nature. There has been insufficient exploration to define a mineral resource in relation to that target coal.  It is uncertain if further exploration will result in the determination of a mineral resource in relation to that target coal.  At Berau, the target mineralisation is interpreted as having similar quality to the Inferred resources and for the required purpose of including a range of ‘grades’ the same properties are quoted as +/-10% of the assayed properties.)

An environmental impact study has been commissioned as a precursor to applying for a mining licence to commence operations in the second half of 2009.  Various other studies are also in progress or being commissioned, including mine planning, transportation, port infrastructure and sales and marketing.

The total project area is approximately 5,000 hectares with the focus of initial activity centred on an area of approximately 100 hectares located at the north-west corner of the concession. 

This area was chosen due to the occurrence of surface outcrops of coal which formed the basis of initial investigation and drilling.  Subsequent mapping and drilling over a small portion outside the initial 100 hectare area has indicated the occurrence of further coal outcrops which are yet to be fully investigated.  The Company accordingly believes that there is the potential for the discovery of further coal within the 5,000 hectare concession area.

Strike is currently awaiting the final results of resource modelling to define a JORC resource estimate from the 4,511 metres of diamond drilling (over 66 holes) conducted in the project area.

An Environmental Impact Study has been commissioned as a precursor to applying for a mining licence to commence operations in the second half of 2009. 

Various other studies are also in progress or being commissioned, including in relation to mine planning, transportation, port infrastructure and sales and marketing. 

Additional exploration is currently being planned to test coal seam extensions to the south-east to the north-east and to the south-west of the current work area.  This will comprise initial geological outcrop mapping to delineate drill targets.