General Search - Enter what you're looking for...
HUNNU COAL LTD - ASX: HUN
The data on Australian Shares.com is intended as a guide only and is compiled from information in the public domain. Data on this website should not be used to make an investment or trading decision.
Description
Hunnu Coal was incorporated in Australia for the purpose of acquiring and developing coal projects in Mongolia. The Company operates in Mongolia through its subsidiary company Hunnu Resources LLC, a Mongolian incorporated company.
Through a series of acquisition and joint venture agreements, Hunnu has built a diverse portfolio of exploration tenements spread throughout the various coal basins of Mongolia. The company considers these tenements to be prospective for high quality coking and thermal coals able to be developed for both the domestic and export markets.
Hunnu Coal is positioning itself for increased demand for coal with a pipeline of unique exploration and development projects in strategic locations that will help to provide for future growth and expansion.
Tsant Uul Coking Coal Project
The Company owns 90% of the Tsant Uul Coal Project which covers over 59,000Ha of area in the world class South Gobi Coking Coal Province of Mongolia. The project is located only forty kilometres to the south of the giant six billion tonne Tavan Tolgoi coking and thermal coal deposit and approximately 6km from the existing coal haulage road to China.
The Tsant Uul Coal Project will be greatly advantaged by the massive infrastructure projects currently being proposed and developed at the nearby Oyu Tolgoi Copper Gold Project, the Tavan Tolgoi Coking Coal Deposit and the expansion projects at the UHG Coking Coal Mine. The Tavan Tolgoi Coking Coal Field is estimated to contain over six billion tonnes of coking and thermal coal in the South Gobi region of Mongolia.
At the end of October the Company had eight drilling rigs operating on the Project and had drilled 17,226 metres from 97 holes. The Company has discovered a semi continuous coal seam with over eight kilometers of strike length and the entire system remains open with some of the better drilling results only recently being completed. Coal has been intersected less than ten metres from surface with a combined seam thicknesses of approximately 30 metres.
The Company is targeting the release of an initial JORC Resource for the first quarter of 2011 and has an Exploration Target* of 100Mt to 150Mt of coal for this Project. Another potential coal sub basin has recently been identified at Tsant Uul and the Company plans to test this target on completion of the current drill out programme. The strategic location near existing infrastructure and the quality and potential size of Tsant Uul has made it a clear candidate for fast track development. The Company has decided to proceed with mine permitting and development scenarios with the aim of delivering first coal to the market in the latter half of 2011. Discussions have commenced with a number of mine gate off-take partners.
Unst Khudag Coal Mine & Har Toirom Discovery
The Company owns 80% of the Unst Khudag Thermal Coal Project which is located in Dundgobi province, 290km from Ulaanbaatar, and approximately 180km 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 covers approximately 1,600 hectares.
The Company implemented an aggressive drilling programme prior to the end of 2010 and is currently processing the results. The exploration and modelling of the coal deposits in the Unst Khudag Project area has principally focussed on the recently discovered Har Toirom Deposit and has resulted in the definition of a JORC Resource of 324Mt to a depth of 140m. Within this deposit there is an estimated 226Mt which can be classified as Measured and Indicated (refer Table 1). The Resource is based on approximately 30% of available data.
Exploration has located a number of thick, shallow coal seams with an average calorific value of 6,784 kcal/kg dry ash free (daf), which are available for potential economic open cut extraction and sale as a thermal coal product. Ongoing studies will be carried out to assess the mining, metallurgical, economic, environmental, and other aspects to enable the estimation of Coal Reserves in accordance with the JORC Code.
Work is progressing on the Unst Khudag Deposit which has been substantiated by recent drilling and preliminary modelling. Coal resources estimated in compliance with the JORC Code will be defined and reported in early 2011.
Mine For
coal
Location of operation(s)
Mongolia
Address
Level 1, 33 Richardson St
WEST PERTH, WA, Australia
Phone
(61 8) 9200 4267
Website
Last Updated
5/4/2011
The data on Australian Shares.com is intended as a guide only and is provided purely as an indication of what information can be found through official announcements. Data on this website should not be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. The publisher (Intaanetto Pty Ltd) will not be held liable for any loss arising from the use of this website.
