CHL - Churchill Mining Ltd

**gunner** · 8th June 2009

Company website : http://www.churchillmining.com/

Number of shares in issue : 77,388,514 (3/6/09)

In May 2009 Churchill Mining announced that the global resource at their East Kutai Coal Project had more than doubled again to 3.18 billion tonnes of thermal coal. Included in this global resource was the previously reported JORC compliant resource of 1.4 billion tonnes. The balance is expected to be upgraded into JORC compliant categories shortly, once final digital survey data has been processed.

Churchill has now defined a coal system 18 kilometres long and approximately 3 kilometres wide. To date only 30% of the EKCP area has been drilled and the existing resource remains open along strike.

Coal quality in the latest round of drilling is similar to previous drill samples with the coal defined as medium calorific, with low sulphur and low ash content. Churchill believes, given the potential world-class size of the EKCP resource, that the project now has the scale to be of strategic value to major Asian power groups – particularly those in Indonesia, India and China.

Churchill Mining also confirmed that it had recently obtained its approvals and mining licenses from the Indonesian Government.

Due to the large size of the deposit, Churchill is now focusing its mine and infrastructure planning to create a bulk mining operation producing up to 20 million tonnes of coal per annum. The Company has also set a new JORC reserve target of 500 million tonnes to support this production level; the original target was 150 million tonnes.

Comment:

I have been tracking CHL for around 2 years, ever since they announced they were mining a large resource in Indonesia. I originally purchased at 50p, tracked it all the way to 96p, sold out, and watched it drop with the rest of the economy to around the 20's.

Brought back in, Dec 08 for around 29p, and expect big things.

They have a massive proven resource, calculated to be around 3.5 billion tonnes of coal (originally, predicted at half this). Coal is massive business in the developing economies of China and India, and as and when they can get the infrastructure in place to export, there will be some serious interest - as the demand for power in east Asia is huge.

I am expecting big things!

**Spennyboy** · 9th June 2009

Thinking of investing in these myself - been keeping an eye on it for a while.

The spread is 3p at the moment however, gonna sit back and watch it over the next few hours.

**Spennyboy** · 26th June 2009

These guys seem to be trading in 50-55p range.

Quick 10% here with a decent investment.

If it goes back down to 50 or below (was 49.50 yday) then i'll have some of the action.

**Spennyboy** · 9th July 2009

Keep your eyes on this.

Seems to be in a trend of 50p-55p give or take.

Next time the offer hits 50/51p, im in.

EDIT: Haha, just realised i posted the almost identical thing a week ago. Suffice to say it was moving up to 58p mark, now coming back down.

**Roach-Rampino** · 9th July 2009

Originally Posted by Spennyboy

Next time the offer hits 50/51p, im in.

Closed at 51p pal so you could go for it.

**Spennyboy** · 21st August 2009

Was a long wait but its spiked back up to 54/55p.

Question is, will it hold/hover around up to 58p... or flake out back down to 49/50?

Or defy all odds and break 60p.

Hmmmm.