Lucky Strike says CN Coal project has 272 million tonnes of M&I resources

Lucky Strike Resources (CVE:LKY)(OTCQX:LKYSF) Wednesday released initial coal resources in the measured, indicated and inferred resource categories for the CN Coal project in the Tuv Aimag province of Mongolia.

The NI 43-101-compliant resource estimate of 272 million tonnes of measured plus indicated resources and 232 million tonnes of inferred resources was prepared by Norwest of Salt Lake City, Utah.

Shares were up almost 3% at 70 cents on Toronto's Venture Exchange.

Lucky Strike has an option to acquire an 80% interest in the project from five private local companies. Norwest states the five seams that comprise the surface resource estimate are all classified as Lignite A, according to ASTM rank classification, typical for thermal coal use.

As part of the preparation of the independent NI 43-101 technical report, Lucky Strike completed a Legal Title Opinion for the six mineral exploration licences covering a contiguous area of 13,093 hectares (131 square kilometres), located approximately 175 kilometres southwest of the capital city of Ulaanbaatar in Mongolia.

Norwest recommends a two-phase exploration program: the first phase would consist of conducting detailed geologic mapping, infill and step-out drilling (of approximately 8,000 metres) to increase tonnage within the measured and indicated assurance categories, as well as hydrologic and geotechnical testing, followed by an interim report.

The second phase would consist of additional drilling (of roughly 5,000 metres) on the remaining area covered by all licenses to potentially extend the resource base. Lucky Strike also plans to have magnetic and surface geophysics surveys run on the property.

The company has purchased data to complete the NI 43-101 technical report in consideration for $25,000 upon signing of the data purchase agreement with Gulfside Minerals (CVE:GMG), with a further payment of $300,000 upon the completion of Lucky Strike's option to acquire an 80% interest in the CN project.

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