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Altai Nuurs Coking Coal Project
The Company recently acquired 70% of the Altai Nuurs Coking Coal Project which covers over 46,212Ha of area in the south western Gobi Altai Province of Mongolia. The Project consists of 6 Exploration Licences and 4 mining licences and is located only 250 kilometres from the Burgastai border crossing into China with an existing road already in place.
A total of 19,427 metres have been drilled for 107 RC and core drill holes with a major drilling programme planned for 2011. The Company has an Exploration Target* of 250Mt to 500Mt of coal for this Project based on drilling, coal test work and wireframe modelling. JORC modelling is currently underway.
As the Mining Licences are already in place and the preliminary test work indicates the coking coal parameters compare favourably with similar coking coal projects elsewhere in the world (Table 1) the Company intends to Fast Track the development of this Project.
| Parameter | Altai Nuurs (Hunnu Coal JV) |
Tavan Tolgoi |
Moatize (BHP-B) |
Peak Downs (BHP-B) |
| Moisture (% ad) | 1.6 |
n/a |
n/a |
1.0 |
| Ash (% ad) | 10.7 |
7.8 |
10.5 |
9.7 |
| Volatile Matter (% ad) | 18.0 |
26.5 |
22 – 25 |
20.5 |
| Cal. Val. (kcal/kg, ad) | 7,460 |
7,770 |
~7,400 |
n/a |
| Crucible Swelling No. | 8.5 |
8 |
8 |
8.5 |
| Total Sulphur (% ad) | 0.48 |
0.39 |
0.8 – 0.9 |
0.6 |
| Phosphorous (% ad) | 0.017 |
0.06 |
0.08 – 0.10 |
0.04 |
| Alkalinity Index | 0.56 |
0.65 |
n/a |
0.66 |
| Coke Strength Ratio | >70 (est) |
65 (est) |
> 65 |
74 |
Table 1: Comparison of key parameters of coal from
RC drilling at
Altai Nuurs to other coal deposits.
*This work has not resulted in the definition of any resource which is compliant with the JORC Code but has identified an Exploration Target. With further exploration, this target has potential for between 250Mt to 500Mt of coal in Altai Nuurs coal project area. The potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a Mineral Resource in accordance to the JORC Code. As such it is uncertain if further exploration will result in the determination of a Mineral Resource. Further Hunnu cautions that in order to achieve this target, substantial exploration is required to further geologically map, detect, trench and drill test the defined conceptual target. On this basis, Hunnu considers that further work is warranted beyond that previously conducted.
