In less than a year of exploration in Mongolia, Red Hill Energy (RH-V) has built a coal inventory of more than 1 billion tonnes a 193% increase in tonnage since Sep. 10 — from two coal projects in the countrys rich Nyalga coal basin.
Red Hill announced today that its Chandgana Khavtgai coal deposit has defined a coal resource of 678.4 million tonnes, with 188.7 million tonnes measured and 489.7 million tonnes indicated. The property also has an inferred resource of 439.6 million tonnes.
Chandgana Khavtgai is next to Brazils Companhia Vale do Rio Doces (RIO-N) lead coal project in the historic Nyalga coal basin, 300 km east of Ulaanbaatar.
Of the more than 1 billion tonne resource from Chandgana Khavtgai and Red Hills sister property, Chandgana Tal, about 9 km to the northeast, 504.5 million tonnes are classified as measured resources and 524 million tonnes are indicated, with an additional 475.5 million tonnes inferred.
In both Chandgana projects, the coal is outcropping so there is easy access to the coal seams, the company said in a statement. Stripping ratios are low, at about 2.1:1 at Chandgana Khavtgai and 0.53:1 at Chandgan Tal.
The Nyalga basin is accessible by road. The nearest railroad is 160 km to the west, with links to China to the south and Russia to the north.
In addition to its two properties in the Nyalga basin, Red Hill holds the Ulaan Ovoo coal project in northern Mongolia, which has a National Instrument 43-101 compliant resource of 208.8 million tonnes coal (174.5 measured and 34.3 indicated) and an additional 35.9 million tonnes inferred.
Shares of Red Hill on the Toronto Venture board closed at $1.15 a share, up 23, on a trading volume of 1.2 million.
Be the first to comment on "Red Hill finds more coal in Mongolia (October 25, 2007)"