The findings came from the first borehole drilled in the south of the basin. A 3.55 metre coal intersection was encountered at a depth of 170m and a 39m seam with a 5.52m stone band parting intersected at a depth of 272m.
The combined seams represent a strip ratio in this area lower than the previously estimated 6:1.
The company said downhole geophysics confirmed the lower seam intersected in the new hole correlates with the 41m coal seam from a hole some three kilometres to the north.
Announcement of the latest drill results coincides with a visit to the site by a group of UK institutions and brokers, who were invited to inspect progress on the Definitive Feasibility Study (DFS), which Asia Energy is undertaking with the aim to start mining at Phulbari in 2007.
The Company has intensified the resource definition drilling programme by engaging a specialist Bangladesh-based drilling company to carry out pre-collar drilling to support its four diamond drilling rigs. Eight drilling rigs will now be deployed to maximise the prime drilling conditions during Bangladesh’s dry winter season. A total of 50 holes will be drilled with a view to completing the DFS by the first quarter of 2005.
In addition, a geophysics team has arrived in Bangladesh to survey the boundaries of the Phulbari coal basin.
“The ongoing drilling programme further confirms our belief that Phulbari is a world-class coal deposit,” said Christopher Eager, Chairman of Asia Energy.
