Company Profile

Churchill Mining PLC (Churchill or the Company) listed on the Alternative Investment Market (AIM) of the London Stock Exchange in April 2005.

Churchill's business plan is to leverage off the rampant growth currently experienced in China and India and in particular its appetite for raw commodities used as feedstock in its burgeoning steel and energy industries.

The execution of this business plan has been instigated with the acquisition of the Sendawar Coal Project in East Kalimantan, Indonesia as well as continued exploration of the South Woodie Woodie manganese project in Western Australia .

More recently, the company has concluded an Exclusivity Agreement with PT Techno Coal Utama in regard to the highly prospective thermal coal project located in the East Kutai Regency of Kalimantan, Indonesia.

Furthermore Churchill's management continues to assess further opportunities in Australia and southern Asia to acquire quality projects in line with the Company's business plan. Churchill is committed to growing shareholder value by become a leading minerals explorer and future miner at a time of accelerating commodities demand.


Recent Minesite article : http://www.churchillmining.com/pdf/2008/23_01_08.pdf


January 2008 Research note : http://www.churchillmining.com/pdf/2008/reserchnote.pdf

Well here it is, and its "BIG".


, 2009

7

26 October 2009 CHL: AIM
CHURCHILL MINING PLC

INITIAL MINING RESERVE STATEMENT AT EKCP

Highlights:

Initial JORC Probable In-Situ Reserve of 956 million tonnes for the East Kutai Coal Project ("EKCP")
Low cumulative strip ratio of 3.6:1
Current Feasibility Study enters final phase

Churchill Mining PLC (AIM: CHL) the Indonesian-focused coal mining company and its Indonesian partners the Ridlatama Group, are pleased to announce a JORC Probable In-Situ Reserve of just under 1 billion tonnes of thermal coal for the EKCP, in which Churchill Mining has a 75% interest.

The JORC Reserve Report, compiled by independent coal geology and mining specialists SMG Consultants ("SMGC"), defines an initial JORC Probable In-Situ Reserve of 956 million tonnes of thermal coal at the Company's flagship project in Indonesia. This reserve statement follows the resource upgrade in August 2009 of 1.33 billion tonnes of coal into the JORC categories of Measured and Indicated, from a total global resource of over 3 billion tonnes. The SMGC Reserve Report also describes a comparatively low cumulative average strip ratio of 3.6:1, which should result in excellent project economics.

Feasibility Study

The Company continues to move forward on the current feasibility study and other work associated with the project.

Tenders have been issued for all the main components of the project including the port and its facilities, the conveyor system, service road and power plant, along with all the relevant requirements at the mine site. All bids are expected to be in and reviewed before the end of 2009 so that the feasibility can be completed and the JORC Proven Reserve defined.

Churchill Mining's CEO Paul Mazak commented:

"We are extremely pleased to report the initial reserve statement for the EKCP. This is a significant milestone for Churchill and its Indonesian partners. The size of the initial reserve, at just under a billion tonnes, demonstrates the world-class size of the project.

The Company believes that a project of this scale and magnitude is extremely attractive to end-users of thermal coal, particularly in India and China. With the value of EKCP being enhanced by the strategic location in relation to the ever-growing Asian coal markets and combined with the steady progress that has been made technically on the project, it is likely that the interest in the EKCP will increase".

JORC STATEMENT

This reserve statement completed during October 2009 has been prepared in accordance with the JORC Code 2004.


in accordance with the AIM Guidelines, Mr. Keith Whitchurch of SMG Consultants, is the qualified person that has reviewed the technical information contained in this release.

the information in this statement relates to Coal Reserve of the East Kutai Coal Project and is based on information compiled by Keith Whitchurch, who is a Member of the Australasian Institute of Mining and Metallurgy, a Chartered Professional Mining Engineer and a Registered Professional Engineer (Queensland). Keith Whitchurch is employed as a Principal Engineer by PT SMG Consultants. Keith Whitchurch has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves". Keith Whitchurch has over 25 years experience in planning and mining of coal deposits.

cyril

Most surprised at the responce to the latest update and represents a great buying opportunity imo,this news so so de-risks the project. Reading the chairman's statement i feel he's telling us who the possible bidders are?
100k just gone through,seems what we have is beginning to dawn upon the market?
aimho
cyril

Hi Cyril,
Like you I was a little surprised at the rather muted response to this positive announcement but as I had decided to hold long term I am not too concerned as I feel sure that it can only go from strengthen to strengthen as time goes on.
I had thought about top slicing but decided to stay fully committed (glad I did now) as I'm thinking to make this a main/long part of my folio along with SKR, AST,AEX, PCI, MONI & FTO from my others - but am not totally sure about the last two..??
Clive.

Hello Clive,a muted responce indeed,although ticked up towards the end.The news which will drive forward this stock should be with us shortly,of course the bids i refer too.3 is not unresonable for the EKCP alone and by doing some simple calcs
helps prove it's worth.
total of 92m(with warrents)max shares and 956m/tonnes of coal,of which 75%
belongs to CHL.
956*.75 == 717/92 = 7.8tonnes per share at a very conservative $0.5/tonne
thats $3,9 a share
3.9* 0.6122 = 2.38p + 7p cash = 245p
The very valuable Sandiwar CBM project and Manganese resource(20%),all this makes ita no brainer imho?
Past experience has taught me a little caution so i have stopped myself throwing the kitchen sink at it(lol) and will be happy with a nice earner to add to my pension.
Looking at your portfolio i have,
SKR which looks like a surefire thing.
AST which has great assets but need the big ones to prove up so more Spec.
PCI which i've just bought into and look to have an exceptional gas find and provided it 's proven commersal,then very cheap.
The others i no lttle of, so no comment there.
Seems a shame to me that so little interest is shown on here,seeing the
obvious value it is?
cyril
ps should have pointed out that this is for just 25% of the area and this still has
a billion or more tons being proven up?

extract from Guardian
Finally Churchill Mining climbed 8.5p to 113.5p after a report suggested there could be just under 1bn tonnes of thermal coal at the East Kutai Coal Project, where the company has a 75% stake. Churchill recently announced three bid approaches, and traders said the reserves news could prompt one or more of the predators to make a move.
cyril

cyril,

I have heard the bids will be in the 150p - 175p range, and I presume this is for the one licence, though that was not stated.

I would have expected more personally.

Andy thanks for the info,surely not the whole company?
cyril

Cyril,

I hope it's for the one licence, time will tell.

Nice movement last 2 days,high 117p before settling down at 114.5p on good volume.Bid rumour raising its head again?
cyril

Further progress this am,up to 119,5p,tends to rise prior to news?
Turned down 107p 2 days ago as i thought the premium a bit high(3p)on
a t25, doh. Shouldn't complain, as one of my largest holdings.
cyril

Just took 5 minutes on the phone to top up, so maybe not too much stock around?

Could not trade online, even for 3K shares!

Pala now own 25.7m shares which adds up to 33.2%,with one of their people on the board seems to suggest ???
Korea,India and China all showing a lot of interest,a bid for EK can't be far of imho??
cyril

PROJECT UPDATE FOR

EAST KUTAI COAL PROJECT

Highlights:

East Kutai Coal Project Feasibility Study now complete

The study defines a preferred 20 million tonne per annum production rate

Tendering from international groups to build the project's mine stockyard, conveyor, port facility and power station well advanced

Completion of tender process and final review of bids anticipated by end of January 2010

Project commencement anticipated to start in 2010 and be complete by 2012

Churchill Mining PLC (AIM: CHL) the Indonesian-focused coal mining company and its Indonesian partners the Ridlatama Group, are pleased to announce the following progress update for the East Kutai Coal Project (EKCP), in which Churchill has a 75% interest. The EKCP has a 2.481 billion tonne JORC resource of which 956 million tonnes has been classified as a JORC Probable reserve.

Feasibility Study work on EKCP by Churchill Mining ("Churchill" or "the Company") is complete and has identified the potential to exploit the project's thermal coal reserves at a preferred annual production rate of 20 million tonnes per annum.

The Company has put the project's infrastructure items (mine stockyard, overland conveyor, port/ship loader and power station) out to tender and this process is well advanced. To date the bids received have been well under predicted costs due to the resurgence in global manufacturing and engineering capabilities following the Global Financial Crisis downturn.

Churchill anticipates completion of its tender process and final review/evaluation of the bids by the end of January 2010. At this point the Company will be in a position to further inform investors of EKCP's expected capital cost and life-of-mine financial returns.

Churchill anticipates project construction work at EKCP will start in 2010 and will take two years to complete. The Company consequently has applied for all the necessary licences and permits with the relevant Central, Provincial and Regional Indonesian Governments to expedite development.

At site the Company recently began mining a bulk sample for testing at the Australian Coal Industry Research Laboratory in Queensland, Australia, in order for Churchill to advise potential customers of the coal's handling abilities, combustion, boiler performance and other quality characteristics.

Company representatives also recently visited 17 companies on India's East Coast to discuss the project and potential off-take agreements. Churchill came away highly encouraged by the growth profile of future Indian coal demand - it was established that India will need a minimum of 100 million tonnes per annum of new EKCP-styled coal to meet expected future energy needs.

The EKCP Coal Project

Churchill's feasibility work found that EKCP is best exploited at a preferred rate of 20 million tonnes per annum. The coal will be transported from the mine, ultimately made up of three open pits, using a 160 kilometre overland conveyor system comprising eight flights at a speed of 5 metres per second.

The conveyor, which will be powered by a coal-fired power plant using EKCP coal, will be engineered to Australian standards and has been designed to meet varying gradients of topography. Currently four international groups are tendering to build the conveyor in conjunction with more than 40 component companies. Final tenders to build the 75MW power station and associated transmission lines have also recently been received. The Company has also been in discussions with a major automation consultant who will advise on the latest monitoring and control systems for the conveyor and associated infrastructure.

Coal conveyed from the mine will be delivered to a coastal port location which Churchill has identified as the optimum deepwater site to accommodate Cape class ships. The conveyor will feed to a port stockpile with an underground feeder reclaiming system. This ship loader will be built to handle ship loading up to 6,000 tonnes per hour. The Company is now undertaking final bathymetric and wave, wind and tide studies for the future port facility. Tenders for the port piling and coal loader have been received.

Churchill Mining's CEO Paul Mazak commented:

"We are very pleased with the results of EKCP Feasibility Study and look forward to announcing the associated results of our economic modeling early next year. As more data and certainty has been brought to bear on the EKCP project, so too has been the level of interest from the international coal community.

"Churchill is still evaluating how best to generate value for shareholders. Our options include the sale of the project or company, the development of EKCP with a joint venture partner or the financing and implementation of the EKCP by Churchill itself. We continue to have discussions with a number of interested parties and the Company hopes to be position next year to announce the results from these negotiations."

cyril

What a roller coaster day this has been, can't believe we have pulled this back after such a fall
AGM Friday wonder if a little more news in the pipe line

kkeith,

Well if it is, i hope they word it better than the last RNS!

As you rightly say, quite a fall for no bad news, let's hope now the S/B contract period has renewd, normal service will be resumed!

Andy in other stocks i have we have had badly worded RNS which resulted in the same situation we had here,,, slap on the wrists for whoever wrote that lol
If you are going to the AGM any chance of any snippets for us,, also did you notice the large trades reported after hours could these have been sells that caused the fall or a shake to fill the orders

Seems confidence is returning here?
cyril

Churchill gets a mention in FT market report tonight-Churchill Mining was also being closed followed amid speculation that there could soon be a conclusion to long-running takeover talks. In September, the coal miner revealed it had received three approaches: two for the possible acquisition of specific assets, and the third a possible offer for the company. Churchill, which spent most of the day in positive territory, dipped 0.2 per cent at 95p.
cyril

A lot of excitement today with large buys and volume,which could suggest
the long overdue RNS is about to be released?
cyril

Ditto to previous post,only RNSis promised and undoubtability concerns
the Feasablity Study.
cyril