Ovoot drilling to start

Aspire Mining has engaged a drilling contractor for the 2011 season and a drill rig is expected to be mobilized to the Ovoot Coking Coal Project site by the end of February. The company has approved a 10,000 metre drill program for Ovoot in 2011, largely to extend its coal resource base and further advance exploration within the basin.

Aspire has also received preliminary analysis of new drill data from the Ovoot project which shows that the seismic geophysical program has successfully identified faulting basement and location of coal seams.1

The data is being processed and analysed following the completion of a 2-D seismic campaign which has been ongoing through the Mongolian winter since drilling finished in October 2010.

Managing director David Paull says, “We should receive the results of this data analysis shortly, which will be vital to better understand the Ovoot coking coal deposit and to fully determine our 2011 exploration strategy.”

Ovoot’s existing 330.7 million tonne coal resource is based on 8364 metres of drilling, which accounts for less than 10% of the 500sqkm project area.

Aspir’s 2011 drill program will also target additional near-surface coal seams. This will boost the resource base and potential for open pit operations. Geotechnical drilling and infill holes are planned to further assist with mine planning for an initial box-cut entry to the deposit.

Results from coal quality analysis are expected to continue to be received through the March quarter. A scoping study in relation to a large scale development of Ovoot is expected to start in the June quarter.

Aspire’s targeted mine plan for Ovoot annually delivers 15 million tonnes of run-of-mine ore for at least 25 years. Plans for a rail network are proceeding to connect Ovoot with potential customers.

The company has started a study to investigate low capital expenditure options to direct ship up to a million tonnes of unwashed coking coal from Ovoot via road to rail facilities at Erdenet. Once loaded onto a train at Erdenet, product can then be transported to markets in China, Japan and Korea.

Aspire is targeting first production from Ovoot by the December quarter, 2012, but initial export will rely on completion of a sealed road from Moron to Erdenet. Construction of this road is in progress with completion anticipated by late 2012.

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