Thursday, November 12, 2009

Panax and Dairi Prima talks

Panax Geothermal Ltd claimed it has entered into a memorandum of understanding with PT Dairi Prima Mineral, a subsidiary of Herald Resources Ltd, allowing for negotiations towards the establishment of a JV to conduct joint exploration and development of identified geothermal prospects in North Sumatra for future base-load power supply to Dairi Prima zinc/lead project.
The electricity requirements for this off-the-grid mine can be met by a power plant with a 20 to 30 MW installed capacity. The area surrounding the Dairi Prima project hosts numerous geothermal prospects associated with Quaternary volcanic centers along the Sumatran transcurrent fault, Panax told ASX this morning.
Under the MoU, Panax will fund a review and pre-feasibility study, of the current target areas that have been identified with a view to the identification and application for suitable tenement areas, prior to the commencement of drilling activities.
Herald Resources is controlled by PT Bumi Resources (BUMI) Tbk, affiliated with Bakrie Group. BUMI spent almost US$600 million to acquire Herald and will spend another US$211 million to develop the Dairi Prima project.

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