– 2016 IQPR reports substantial increases of 227% in Coal Reserves and 150% in Coal Resources
– 55 million tonnes of Coal Reserves upgraded to “Proved Reserves” status
– Coal Reserves at 147 million tonnes, Coal Resources at 520 million tonnes

SINGAPORE — BlackGold Natural Resources Limited (the “Company”, and together with its subsidiaries, the “Group” or “BlackGold”) is pleased to announce that its Coal Reserves at its PT Samantaka Batubara Concession (“PT SB Concession”) as at 9 June 2017 have more than tripled from its last reported estimates, which were announced on 8 August 2016.

The Coal Reserves and Coal Resources as at 9 June 2017 have increased by 227% and 150% respectively, according to its latest independent qualified person’s report for the financial year ended 31 December 2016 (“2016 IQPR”), which was prepared by the Company’s independent consultant, PT GMT Indonesia (“PT GMT”). Total Coal Reserves estimates at PT SB Concession increased from 45 million tonnes to 147 million tonnes, while Coal Resources estimates increased from 210 million tonnes to 520 million tonnes. The reported Coal Reserves assume and is dependent on the Company being successful with its bid to supply 3.5 million tonnes of coal per annum to the Riau 1 Mine-Mouth Power Plant. The Company is of the opinion that there is a reasonable expectation that the current bid (to supply coal to the Riau 1 Mine-Mouth Power Plant) will proceed.

PT GMT’s report was prepared according to the guidelines of the internationally accepted Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia, December 2012 (the JORC Code 2012).

Coal Resources refer to coal of such form, quality and quantity that there are reasonable prospects for eventual economic extraction. Coal Reserves are defined as the economically mineable part of a Measured and/or Indicated Coal Resources. Coal Reserves are divided in order of increasing confidence into 1) Probable Coal Reserves and 2) Proved Coal Reserves. Proved Coal Reserves refer to the amount of coal that can be extracted with a level of certainty that is higher than that of Probable Coal Reserves. Coal Resources reported are inclusive of those Coal Resources converted to Coal Reserves.

“We are very encouraged by the stellar growth in our coal assets,” commented Mr Philip Rickard, the Chief Executive Officer of the Group. “The substantial increase in PT SB’s Concession’s Coal Reserves accelerates the Group’s strategy of becoming a major coal producer in Indonesia. We are also very pleased as this affirms the sufficiency of BlackGold’s Coal Reserves, enhancing our abilities to negotiate increases for future coal deliveries to our existing customers, and for the planned 30-year exclusive coal supply to a 2 x 300 MW coalfired mine-mouth power plant (the Riau 1 project).”

The updated estimates of Reserves and Resources in respect of the PT SB Concession are shown in Table 1 below.

– Press release [PDF]:

The information in this report on the Company’s Coal Resources and Reserve is based on and fairly reflects the documentation prepared by Mr William (Bill) Park (Coal Resources) and Mr Chris Spiliopoulos (Coal Reserves) under the supervision of Mr Krisjna Alimoeddin, a director of PT GMT. Both Mr Park and Mr Spiliopoulos consent to the inclusion in this announcement of the matters based on their information in the form and context in which it appears.