4. The geological model was categorised into Indicated and Inferred confidence areas and then coal
volumes, tonnages and qualities were estimated and reported in these categories after applying any cut-off criteria.
5. Cross sections, plans and deposit characteristics such as structure, number and thickness of seams
were examined in conjunction with the proposed equipment and mining method to decide on minimum mining thickness, coal losses and dilution factors. These factors were then used to
convert the in situ geological model to a ROM model.
6. Costs and revenue factors were supplied by Bayan and checked for reasonableness by MMC.
These were then converted to a form to suit the Optimiser software and together with other criteria such as depth constraints, geotechnical criteria and minimum mining thickness, a series of pit
shells were derived for varying revenue inputs.
7. Pit shells “Optimised Pit Shells” were selected and minor adjustments made as necessary to
form practical pit designs “Mineable Pit Shells”. These pit shells formed the basis of the subsequent reserves estimates.
8. The Indicated confidence limits were overlaid on these pit shells and any Inferred tonnes were
excluded from the estimate. 9.
The quantities were then scheduled and tested in an economic model including capital and operating costs to check the overall economic viability of the results.
10. The Coal Reserves were categorised as Probable based on the Coal Resource confidence and the level of detail in the mine planning.
11. Checks were undertaken and results and supporting information documented in this report.
1.3 Relevant Report and Studies
The following reports, documents and studies were used as reference material in the preparation of the Statement.
1. Preston, KB and Sanders, RH, “Estimating the In-Situ Relative Density of Coal”, Australian Coal
Geology, Vol 9, pp22-26, May 1993. 2.
Australian Guidelines for Estimating and Reporting of Inventory Coal, Coal Resources and Coal Reserves, 2003.
3. Australasian Code for Reporting of Mineral Resources and Ore Reserves, The JORC Code,
2004. 4.
“PT. Gunungbayan Pratamacoal, GBP Block 1, Cilong and Keham Open Cut Coal Deposits Statement of Open Cut Coal Resources and Reserves as at 30
th
September 2007”. MMC Job number 3181M.”
5. “PT. Gunungbayan Pratamacoal, GBP Block 1, Cilong and Keham Open Cut Coal Deposits
Statement of Open Cut Coal Resources and Reserves as at 31
st
January 2008”. MMC Job number 3318M_a.
1.4 Previous Coal Resource and Reserve Statements
MMC has previously prepared two Coal Resource and Reserve statements compliant with the JORC Code for this project dated 30
th
September 2007 and 31
st
January 2008. There has been no mining or updated geology since 31
st
January 2008, therefore there is no change to previously reported estimates.
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2. COMPETENT PERSONS STATEMENT
The information in the report, to which this statement is attached, that relates to the Coal Resources of
PT. Gunungbayan Pratamacoal Block 1, is based on information compiled and reviewed by Mr. William Park, who is a Member of the Australian Institute of Geoscientists and works full time for Minarco-MineConsult
Pty Ltd.
William Park, signing on behalf of Minarco-MineConsult Pty Ltd, is a qualified Geologist who has more than 30 years of relevant mining and geological experience in coal, working for major mining companies
and as a consultant. During this time he has either managed or contributed significantly to numerous mining studies related to the estimation, assessment, evaluation and economic extraction of coal in Australia, New
Zealand, the Philippines and Indonesia. He has sufficient experience which is relevant to the style and type of deposit under consideration and to the activity he is undertaking to qualify him as a Competent Person as defined
in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
WILLIAM PARK BSc Geology, BEcon, MAIG
The estimates of Coal Resources presented in this Statement have been carried out in accordance with the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”
December, 2004. The information in the report, to which this statement is attached, that relates to the Coal Reserves of
PT. Gunungbayan Pratamacoal Block 1, is based on information compiled and reviewed by Mr. Paul Westcott, who is a Chartered Professional Mining Engineer, a Fellow of the Australasian Institute of Mining and
Metallurgy, a Member of the American Institute of Mining Engineers, a member of the Mineral Industries Consultants Association and is a full time employee of Minarco-MineConsult Pty Ltd.
He has more than 30 years experience in the coal mining industry, during which time he has acted mainly as a consultant to the industry and has either managed or contributed significantly to several hundred
mining studies related to the estimation, assessment, evaluation and economic extraction of coal in Australia, New Zealand, Thailand, South America, South Africa, Mongolia, Bangladesh, Ireland, and Indonesia. He has
sufficient experience which is relevant to the style of mineralization and types of coal deposits under consideration, and to the activity he is undertaking, to qualify him as a Competent Person as defined in the 2004
Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
PAUL WESTCOTT BE Mining, Hons FAusIMM, CPMin, MMICA, MAIME
The estimates of Coal Reserves presented in this Statement have been carried out in accordance with the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”
December, 2004. The above-mentioned persons have no interest whatsoever in the mining assets reviewed and will gain
no reward for the provision of this Coal Resource and Reserve Statement. Minarco-MineConsult will receive a professional fee for the preparation of this statement.
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