Newera Resources intercepts thick coal in Mongolia

Newera Resources (ASX: NRU) has intersected two main, shallow coal seams totalling 26 metres in length at its Shanagan East Project in Mongolia.

The coal in this particular drill hole has a field interpreted brightness of C1 to C3, with C1 an estimate of greater than 90% brightness and C3 an estimate of greater than 40% but less than 60% brightness.

The brightness of coal is measured against a brightness index and measures light reflectivity, which is indicative of the ash content. The brighter the coal, the lower the ash content and the more energy it produces, therefore it is more valuable.
Geological core logging of the hole has determined there exists a total of 19.45 metres of net coal.

Of the 11 holes completed to date, nine holes have intersected Late Permian coal seams and in a majority of holes, multiple coal seams.

Only one sample result from this program has been returned from the laboratory to date, from an earlier drill hole.

Initial coal quality results from a 1.2 metre seam in this hole shows borderline semi-anthracite coal with a CV of 8263 kilocalories (DAF), 9.86% volatile matter (ARB), 7.47% total moisture/0.83% inherent moisture, 27.65% ash (ARB), and 84.8% fixed carbon (DAF).

Following the drilling of this hole, which suffered loss of core, Newera decided to extend the drilling program by a further 250 metres.

The repeat hole was subsequently drilled with excellent recovery, and the remaining 200 metres of drilling is being allocated to expanding the coal envelope surrounding this drill hole.

Strategic location

The Shanagan Project comprises one exploration licence covering around 2,223 hectares in a known coal bearing region, 140 kilometres southeast of Ulaanbaatar.

The project is ideally located about 50 kilometres from an existing rail siding that services the nearby Baganuur lignite coal deposit, and connects to the trans-Siberian railway that services China in the South to Russia in the North.

Newera is investigating whether access to the line is possible.

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