Hunnu Coal acquires major land position in South Gobi coal province
Hunnu Coal (ASX: HUN) has acquired a 90% interest in the Tsant Uul Coal
Project with the aim of becoming a major force in the development of
coal deposits in the world class South Gobi coal province.
The
Tsant Uul Coal Project covers over 59,000Ha of area in the South Gobi
Coking Coal Province. The project is located only forty kilometres to
the south of the giant six billion tonne Tavan Tolgoi coking and thermal
coal deposit and approximately 6km from the existing coal haulage road
to China.
The company said the Tsant Uul Coal Project will be
greatly advantaged by the massive infrastructure projects currently
being proposed and developed at the nearby Oyu Tolgoi Copper Gold
Project, the Tavan Tolgoi Coking Coal Deposit and the expansion projects
at the UHG Coking Coal Mine.
The Tavan Tolgoi Coking Coal Field
is estimated to contain over six billion tonnes of coking and thermal
coal in the South Gobi region of Mongolia. Energy Resources LLC mines
approximately two million tonnes of raw coking coal from its UHG Mine
which is located 45 kilometres to the north of Hunnu Coal’s Tsant Uul
Coal Project.
Energy Resources has stated that it plans to
increase the production at the UHG Mine to five million tonnes in 2010,
while building a five million tonne coal washing plant and power plant
on its mine site.
Hunnu said due diligence at Tsant Uul has
included the drilling of seven diamond core drill holes for
approximately 960 metres. Five of the drill holes intersected multiple
coal seams, ranging from 1 metre to 22.8 metres in thickness with
partings.
Coal was intersected as close as 7.8 metres from the
surface. Core samples have been submitted for test work and results are
pending. Based on this drilling the company has estimated an exploration
target of 50Mt and 100Mt of coal for project.
Previous drilling
undertaken on the project intercepted 1m to 16m thick coal seams. Coal
quality parameters included: Total Moisture = 5%, Ash = 8.34%, Volatile
Matters = 33.6%, Fixed Carbon = 58.1%, Sulfur = 0.39% and the gross Qv =
6,989 kCal/kg (all on dry basis).
The Company will undertake a
detailed exploration programme on the project in the coming months as
part of its coking coal exploration strategy in the South Gobi.
George
Tumur, managing director, said "Hunnu Coal is aiming to become a major
force in the exploration and development of coal deposits in the world
class South Gobi coal province. The acquisition of the Tsant Uul Coal
Project adds to the company’s advanced Tenuun 2 and Khuree 2 Coal
Projects, also located in the South Gobi."
The company is
currently assessing further acquisition opportunities in the South Gobi
and would hope to be able to update shareholders on these potential
acquisitions over the next month.
Hunnu Coal is also pushing
forward with its detailed review of the Unst Khudag Thermal Coal Mine.
Discussions with a number of potential off-take partners are progressing
well with the intention of commencing mine operations in 2010.
The
company said An independent geologist has commenced the process of
calculating a JORC compliant resource statement for historical work
completed on both the Tenuun 2 Project and the Unst Khudag Coal Mine.
Results should be available in the coming weeks.
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