Field reconnaissance and trench work in Mongolia have paid off for SouthGobi Energy Resources (SGX-V), which has found yet more coal just 10 km southeast of its producing Ovoot Tolgoi coal mine.
Two trenches, each about three metres deep, were excavated, revealing multiple seams with as many as 15 metres of apparent thickness.
Now SouthGobi has started a drilling program. Initial results have demonstrated multiple coal seams up to 18 metres in apparent thickness.
The drill program will analyze the coal structure and quality.
The newly discovered coal occurrence is just 33 km north of the Mongolia-China border.
In September, SouthGobi Energy started delivering its first coal to China from its flagship Ovoot Tolgoi mine, which operates around the clock.
SouthGobi plans to supply a number of coal productsand electricityto markets in Asia. It is also looking into implementing clean-coal technologies.
The Vancouver-based junior focused on exploration and development of its Permian-age metallurgical and thermal coal deposits in Mongolia’s South Gobi Region and East Kalimantan, Indonesia.
News of the coal discovery failed to nudge SouthGobi shares higher. The stock shed 20 to close at $9.00 per share on a trading volume of 131,754.
SouthGobi has a 52-week trading range of $6.09-21.99 per share, with 132.79 million shares outstanding.
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