Wednesday, March 10, 2010

Australia's Hunnu Coal gains more Mongolian coal

Australian-listed Hunnu Coal has been granted an option to acquire an 80% interest in the Erdenes Thermal Coal Project in Dornogobi province in southeast Mongolia. The project is located 380 km from the capital, Ulaanbaatar, and 56 km from a bulk commodity loading rail facility at Bor Undur, which is connected to the Mongolian railway grid.

"The Erdenes Coal Project is strategically located in a producing high quality thermal coal basin, where mines can be quickly brought into production to deliver thermal coal to both domestic and Chinese export markets," George Tumor, Managing Director, said as reported by Proactive Investor.

Test pits discovered high quality coal seams, with Q = 5,120 to 7,310 kCal/kg, S = 0.11% to 0.63%, Ash = 14% to 38.5% and Moisture content = 8.6% to 12.4%. A single drill hole intercepted a coal seam of 8 m in thickness from 1.5 m depth.

The company has an exploration target of 40 Mt to 60 Mt for the Erdenes Coal Project based on existing exploration work.

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