During the period, Cokal conducted a review of its exploration assets in Indonesia and noted that $2 million of unsuccessful expenditure was derecognised.

Detailed geological survey mapping in and around proposed BBM Pit 1 and Pit 2 in Indonesia was also conducted by Cokal during the period.

BBM covers an area of 14,980ha immediately adjacent to BHP Billiton’s Juloi tenement, straddling the Barito River and has numerous outcrops of bright coal.

Ongoing exploration in the Eastern Block of BBM indicates premium coking coal with low ash, low sulphur and ultra-low phosphorus.

Analytical result of the outcrop samples have confirmed sufficient quantities of low ash coking coal for the initial two years of mining as scheduled in BBM’s definitive feasibility study.

As a result of the additional geological data from the surface mapping, and other geological data an updated JORC resource statement for BBM was released on January 29 this year showing a total coal resource estimate of 266.6 million tonnes, comprising, 19.5Mt deemed measured resources and 23.1Mt as indicated resources.

The upgrade of resource to higher JORC categories is primarily due to the additional outcrop mapping and subsequent channel sampling of the coal for Seams B, C and D in the areas covering Pits 1 and 2 in BBM East.

Meanwhile, Cokal has advised its shareholders to take no action over a unsolicited $A70 million takeover offer for the company by Indonesian group PT Cakra Mineral Tbk (CKRA).

Cokal, whose shares were trading at 4.2c before the offer, said it had received an unsolicited non-binding and incomplete proposal in relation to a conditional off market takeover bid by CKRA for all of the ordinary shares of Cokal.

CKRA proposes to offer cash or CKRA shares for each Cokal share on issue.

With the cash settlement option, the proposed cash offer price is $0.15c per share, assuming about 471.5 million Cokal shares on issue.