Microsoft Word - 20160429_KRL_ASX_Quarterly (lodgement).docx
29 April 2016
Kangaroo Resources Limited
ABN: 38 120 284 040 ASX Code: KRL
MARCH 2016 QUARTERLY ACTIVITIES REPORT
ACTIVITIES REPORT
HIGHLIGHTS
BAYAN's new Road & Port Infrastructure and Barging operations achieving throughput rates of over 6.3Mtpa
Ongoing progress being made on applications for new production licenses for PAKAR North concessions and associated forestry permits.
Regulatory Approvals received for SAU Transaction NOM & IER Perth Office Relocation
Cash at bank at the end of the Q1 was AU$2.292 million.
PAKAR COAL PROJECT (TA, TJ, DE, OM, SA, CA, BS, AU & SK)
Project Infrastructure for TABANG and PAKAR
Current barge loading capacity at the Senyiur Port is 18 Million metric tonnes per year using 2 barge loading jetties.
Work continues on the construction of the port crushing and material handling facility which connect to both Senyiur barge loading jetties.
Utilisation of the New Road & Port Infrastructure
BIS Industries 300 tonne capacity road trains have continued to perform well hauling coal from BAYANS's TABANG mining concessions to the Senyiur Port area during Q1.
TABANG Coal - total coal hauled along the new haul road at 31 March 2016 was around 4.0 Million tonnes and total coal barged from Senyiur Port at 31 March 2016 was around 2.6 Million tonnes. Both port and road have been tested at over 6.3Mtpa.
Development of Pakar North Projects
Work continues on long term mine planning including work on design and planning of river and stream diversions required during the anticipated life of the mines.
Clear & Clean Certificates have already been issued for TA and TJ concessions. Progress still ongoing for remaining 'Clear and Clean' certificates for the other Pakar concessions.
Confirmation drilling plans and further Infill drilling plans have been prepared for the key Pakar North concession areas in anticipation of release of forestry usage approvals.
Level 2, Suite 9
389 Oxford Street, Mount Hawthorn Western Australia, 6016
Telephone +61 8 9381 4320
Facsimile +61 8 9380 6761
MAMAHAK COAL PROJECT (MCM, MEL, MBE & BKL)
Mining operations remain suspended. Skeleton crew remains on site for care and maintenance. Completed disposal of surplus assets
Resumption of mining activity at MCM remains dependent on coal markets improving, and establishing a more reliable logistics route for coal sales.
GRAHA PANCA KARSA COAL PROJECT (GPK)
Awaiting coal market upturn before development can be progressed.
COMMERCIAL
Regulatory approval received and Notice of Meeting issued for General Meeting of Shareholders (to be held on 29th April 2016) to seek shareholder approval to enter into a related party transaction with BAYAN for the sale of the SAU assets.
The Company relocated to new office premises in Mount Hawthorn at the end of Q1.
LIST OF MINING TENEMENTS HELD AT 31 MARCH 2016
East Kalimantan, Indonesia
PT Mamahak Coal Mining - 99% (Equity via KOJ) PT Bara Karsa Lestari - 99% (Equity via KOJ)
PT Mahakam Energi Lestari - 99% (Equity via KOJ) PT Mahakam Bara Energi - 99% (equity via KOJ)
PT Tiwi Abadi - 99% (currently pending share transfer from BAYAN to KRL) PT Tanur Jaya - 99% (Equity)
PT Dermaga Energi - 99% (Equity) PT Orkida Makmur - 99% (Equity) PT Sumber Api - 99% (Equity)
PT Cahaya Alam - 99% (currently pending share transfer from BAYAN to KRL) PT Bara Sejati - 99% (currently pending share transfer from BAYAN to KRL)
PT Apira Utama - 99% (currently pending share transfer from BAYAN to KRL) PT Silau Kencana - 99% (Equity)
PT Graha Panca Karsa - 84.82% (commercial interest currently pending conversion to equity, with a further obligation to transfer 8% to a third party after equity transfer)
Changes in the Quarter to mineral interests / farm-in and joint venture agreements: None of the mineral interests listed above are the subject of any farm-in / farm-out or joint venture arrangements. There were no changes during the quarter.
GLOSSARY
CORPORATE
Company - Kangaroo Resources Limited (ASX - KRL) BAYAN - PT Bayan Resources Tbk
TABANG - 3 BAYAN concessions on the northern boundary of PAKAR North KML - Kangaroo Minerals Pty Limited (subsidiary company of KRL)
WEC - White Energy Company Limited (ASX - WEC)
PMA - Perusahaan Model Asing (local term used for a foreign investment company) BCT - Balikpapan Coal Terminal
DPP - PT Dermaga Perkasapratama - (operators of BCT and owned by BAYAN) CnC - Clear & Clean Status (granted by Department of Mines)
SPA - Sale & Purchase Agreement
IP - PT Indonesia Pratama (services company owned by BAYAN)
BIS - PT BIS Industries (current Coal Haulage Contractors for TABANG)
PTP - PT Petrosea Tbk (current Mining & Construction Contractors at TABANG)
BT - PT Bara Tabang (one of the 2 BAYAN owned existing coal-mines at TABANG) GOI - Government of Indonesia
Mtpa - Million tonnes per annum
MAMAHAK
KOJ - PT Karsa Optima Jaya (the holding company for MCM, MEL, MBE & BKL) MCM - PT Mamahak Coal Mining
BKL - PT Bara Karsa Lestari
MEL - Mahakam Energi Lestari MBE - Mahakam Bara Energi
Long Hubung (current Port location on Mahakam River for MAMAHAK projects)
PAKAR (NORTH)
TA - PT Tiwi Abadi (currently pending share transfer from BAYAN to KRL) TJ - PT Tanur Jaya
DE - PT Dermaga Energi
PAKAR (SOUTH)
OM - PT Orkida Makmur SA - PT Sumber Api
CA - PT Cahaya Alam (currently pending share transfer from BAYAN to KRL) BS - PT Bara Sejati (currently pending share transfer from BAYAN to KRL)
AU - PT Apira Utama (currently pending share transfer from BAYAN to KRL) SK - PT Silau Kencana
PAKAR (NORTH & SOUTH)
SAU - PT Sumber Aset Utama
Senyiur - proposed port location on Kedang Kepala River for PAKAR projects Gunung Sari - existing Port location on Belayan River for TABANG projects
GRAHA PANCA
GPK - PT Graha Panca Karsa
Further information:
Ian Ogilvie Managing Director T | +61 8 9381 4320
E | [email protected] W| www.kangarooresources.com
DISCLAIMER: The information concerning production targets in this announcement are not intended to be forecasts. They are internally generated goals set by the board of directors of Kangaroo Resources Limited. The ability of the company to achieve these targets will be largely determined by the company's ability to secure adequate funding, implement mining plans, resolve logistical & permitting issues associated with mining and enter into off take arrangements with reputable third parties.
It is common practice for a company to comment on and discuss its exploration in terms of target size and type. The information above relating to the exploration target should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the terms Resource(s) or Reserve(s) have not been used in this context. The potential quantity and grade is conceptual in nature, since there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource.