General Mining to strengthen coal prospects with stake in Khuden in Mongolia
General Mining (ASX:GMM), through its wholly owned Mongolian subsidiary Golden Cross, has signed a letter of offer to acquire an interest in a mining licence covering 51.6 hectares in the central part of the Khuden Coal Deposit in Mongolia.
The Khuden Coal Deposit is located 1 kilometre north of the company’s 14404X licence, where it is focused on the prospective carboniferous sedimentary geology.
It is also just 200 metres east of the 15206X licence, which General Mining is acquiring.
The licences form part of General Mining’s wholly owned Uvs Basin Project, which is located in the far north-western region of Mongolia, in the territory of Uvs Aimag.
The company holds five exploration licences and one application covering more than 2000 square kilometres.
The prospectivity of General Mining's Uvs licences for coal exploration can be gleaned via the adjacent Khuden Coal Deposit, where Russian category A to C2 coal resources were estimated to a depth of 30 metres based on 1977 drilling and trenching and further extended by diamond drilling in 1984 and 1985.
The company and a syndicate holding the mining licence are currently finalising the terms of a farm-in and joint venture agreement.
The joint venture agreement is conditional upon:
- The completion of legal, technical and regulatory due diligence by Golden Cross;
- The execution by the parties of the joint venture agreement;
- Any necessary approval by the company’s shareholders to the entry into and/or completion of the joint venture agreement; and
- Golden Cross raising funds to enable the payment to be completed. The company said it is well advanced in discussions with a potential investor.
The Khuden coal deposit was discovered in 1971 and underwent limited subsequent coal exploration in the 1970s to 1980s which was focused on an 800 metre by 1300 metre area – just outside licence 15206X and General Mining’s licences – where several coal seams outcrop amid predominantly sandstone strata.
Most of the Lower Carboniferous geology outside this coal outcropping area remains largely unexplored, including the central part of this basin covered by shallow Quaternary alluvial sediments.
The prospectivity of the wider inter-mountain basin for discovering possible extensions of the gently dipping Khuden black coal seams was suggested by some original historical exploration reports and confirmed by two independent geological reviews commissioned by the company in 2008.
This year General Mining started some preliminary coal exploration in this area including the compilation of all available archival data on the historical coal exploration as well as a field reconnaissance.
The Khuden Coal Deposit is located 1 kilometre north of the company’s 14404X licence, where it is focused on the prospective carboniferous sedimentary geology.
It is also just 200 metres east of the 15206X licence, which General Mining is acquiring.
The licences form part of General Mining’s wholly owned Uvs Basin Project, which is located in the far north-western region of Mongolia, in the territory of Uvs Aimag.
The company holds five exploration licences and one application covering more than 2000 square kilometres.
The prospectivity of General Mining's Uvs licences for coal exploration can be gleaned via the adjacent Khuden Coal Deposit, where Russian category A to C2 coal resources were estimated to a depth of 30 metres based on 1977 drilling and trenching and further extended by diamond drilling in 1984 and 1985.
The company and a syndicate holding the mining licence are currently finalising the terms of a farm-in and joint venture agreement.
The joint venture agreement is conditional upon:
- The completion of legal, technical and regulatory due diligence by Golden Cross;
- The execution by the parties of the joint venture agreement;
- Any necessary approval by the company’s shareholders to the entry into and/or completion of the joint venture agreement; and
- Golden Cross raising funds to enable the payment to be completed. The company said it is well advanced in discussions with a potential investor.
The Khuden coal deposit was discovered in 1971 and underwent limited subsequent coal exploration in the 1970s to 1980s which was focused on an 800 metre by 1300 metre area – just outside licence 15206X and General Mining’s licences – where several coal seams outcrop amid predominantly sandstone strata.
Most of the Lower Carboniferous geology outside this coal outcropping area remains largely unexplored, including the central part of this basin covered by shallow Quaternary alluvial sediments.
The prospectivity of the wider inter-mountain basin for discovering possible extensions of the gently dipping Khuden black coal seams was suggested by some original historical exploration reports and confirmed by two independent geological reviews commissioned by the company in 2008.
This year General Mining started some preliminary coal exploration in this area including the compilation of all available archival data on the historical coal exploration as well as a field reconnaissance.
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