Xanadu Mines "encouraged" by coal quality at Nuurstei in Mongolia

Xanadu Mines (ASX: XAM) has received the raw coal sample analyses from its first diamond drill hole at the Nuurstei Coal Joint Venture in northern Mongolia, with laboratory results confirming high quality of coal.

The hole intersected a thick package of coal bearing sediments greater than 290 metres thick, containing a number of coal seams up to 6 metres thickness.

Initial raw coal quality analyses indicate the potential for low to medium volatile coking coal seams with minor intervals of thermal coal.

Brian Thornton, Xanadu’s chairman, said “the initial coal quality results from the first hole at Nuurstei are very encouraging, with subsequent drilling confirming the discovery of a potentially significant new coking coal province in Northern Mongolia within reasonable distance of the Erdenet rail network.”

Xanadu and Noble’s joint venture company, Ekhgoviin Chuluu LLC, has completed 4 diamond holes for a total of 1,393 metres, with all holes intersecting significant coal intervals across multiple seams.

Washability, coking and plastometric tests have commenced on the coal samples and results will be available shortly.

Nuurstei is the first project of the recently formed Xanadu - Noble Strategic Alliance in Mongolia targeting coking coal and iron ore opportunities.

The project covers an area of more than 3,000 hectares and is located in a newly identified coking coal basin between Murun and Erdenet in northern Mongolia.

The alliance has committed to spend US$1.5 million on exploration as part of its commitment to earn 60% of the project and could move to 80% following completion of a JORC Resource.

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