The mine is located in Dundgobi province of Mongolia and is being developed by Hunnu Coal to deliver thermal coal to both domestic and Chinese off-take customers.
The mine is located 290km from Ulaanbaatar, and approximately 200km from the Mongolian railway grid. The project consists of two exploration licenses and one mining license covering over 59,000 hectares of area.
The mining license area covers approximately 1,600 hectares of area, on which the relevant government authority has approved the mining of 98.7mt of coal.
The company said, that the previous exploration programs undertaken at Unst Khudag have included mapping at various scales, trenching, geophysical surveys and drilling. A total of 39 drill holes have been completed to depths less than 100mt.
Drilling has intersected a single coal seam with thicknesses varying from 5mt to 31mt. The coal seam has approximately 4mt of unconsolidated overburden and dips under cover gently at zero to five degrees.
The current exploration drilling program is intended to confirm the current exploration target within the mining license area and also identify the extent of the coal seam into the adjacent licensed exploration area. A total of 33 drill holes are expected to be completed for approximately 5,000mt.
The drilling program will also include further coal quality test work. Three drilling rigs are currently on site and are drilling a combination of both open hole and diamond core to an average depth of 150mt.
