TVN Corporation shares soar on Mongolian coal results, places A$3.6m for JORC Resource

TVN Corporation (ASX: TVN) shares have soared 17% to $0.055 in early morning trade, on the back of the full coal drilling results from the Nuurst Thermal Coal Project in Mongolia.

The coal seam development has now been extended to over 1.6 kilometres, with a third significant 102.6 metre coal sequence intercepted.

The cumulative down hole coal seam thickness is 81.4 metres thick.

These results follow hot on the heels from the 192 metres thick coal sequence announced at the end of last month, which has multiple seams including a single seam of a substantial 115.5 metres thick.

To continue to progress the project, TVN Corporation has also placed 90 million shares at $0.04 to raise A$3.6 million, to accelerate exploration targeting a JORC Resource.

The company will also use the funds to review the acquisition of further coking and thermal coal opportunities in Mongolia.

Whilst the acquisition of Nuurst does not require shareholder approval, it is subject to completion of due diligence which is currently being progressed by the company. Accordingly, completion will occur in due course.

What has helped spark the investor interest is the exploration target at Nuurst of 50 to 100 million tonnes assumed a coal thickness of just eight metres.

The project is also strategically located six kilometres from existing rail infrastructure, providing low cost access to the key coal export markets of China, South Korea and Japan.

What is so fascinating about exploration and geological understanding in Mongolia is the lack of it, with an estimation that only three quarters of the country has been mapped to a scale of 1:200,000.

The underdeveloped and general lack of infrastructure in the country won't present much of a problem for TVN Corporation at this exploration stage.

Boosting the coal possibilities even higher for Mongolian focused companies, the country has coal reserves estimated at over 150 billion tonnes.

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