Viking Mines has issued a letter of intent to Ellehcor LLC for the provision of drilling services for its Berkh Uul coal project in northern Mongolia.
According to Proactive Investors, the proposed 2000 m drilling programme will involve vertical pre-collar and diamond core drilling to maximum depth of 200 metres that will infill and extend the existing drilling coverage.
Results from the programme, which is scheduled to begin in the next three weeks, will contribute to an update of the existing JORC Resource of 38.3 million t of coal.
It will also provide additional information for input into the approvals process for a Mining Licence for Berkh Uul and provide further coal quality information for input into the planned feasibility study.
The Berkh Uul project, 40 km from the Russian border, has made headway in recent weeks, signing four memoranda of understanding relating to future potential coal supply with the Darkhan thermal power plant, the Erdenet power plant, Darkhan metallurgical plant and the Khutal Cement and Lime plant.
The project consists of shallow, consistent coal seams of high quality bituminous coal, amenable to opencast mining.
Berkh Uul coal is of sales quality without washing. There is potential to further value add to the resource by washing and producing a high quality, high energy thermal coal suitable for export markets.
Mining studies are planned for 2014 to accompany a Mining Licence Application to be lodged during 2014.
Edited from various sources by Sam Dodson
Published on 04/09/2014