There are two existing coal deposits in the surrounding area. The Khashaat Khudag coal deposit located 8km to the north east of the Erdenes coal project hosts approximately 140mt to 180mt of coal, with an average of 5,500kCal/kg. The Olongiin Ukhaa coal deposit is located 4.5km to the south of the Erdenes coal project and hosts 80mt to 90mt of coal.
Exploration work carried out at the Erdenes coal project included 60 cubic mt of pit sampling and a single drill hole to 12.5 mt depth. The exploration was carried out in the northern part (pit 1 to 6), and at southern part (pit 9 to 20 and drill hole DH49) of the license. The average depth of the pits was 3mt and coal was detected in six of the pits. Drill hole DH49 intersected an eight metre thick coal seam from 1.5mt depth.
The Erdenes coal project is located in a producing thermal coal basin, where mines can be quickly brought into production to deliver thermal coal to both domestic and Chinese export markets. The company is planning an exploration program on this project and its other coal projects.
