Hunnu Coal IPO OF THE YEAR Article on RESOURCESTOCKS Magazine

PERTH-BASED HUNNU Coal listed on the Australian Securities Exchange on February 12, 2010, as a specialist coal company with a clearcut strategy.

That was to discover and develop thermal and hard coking coal deposits located near established mining operations or defined deposits and supported by existing or developing infrastructure.

There was nothing unusual about that strategy except Hunnu had chosen to focus its exploration activities on Mongolia.

The company, led by industry luminary Matthew Wood, displayed great foresight in targeting Mongolia, which it rightly considered to host a number of world-class coal deposits with vast areas yet to be explored let alone developed.

"This is what is so exciting for Hunnu," Wood told RESOURCESTOCKS earlier this year.

"We have been able in a very short timeframe to position the company through a number of joint venture agreements in the premier coking coal basins of southern and eastern Mongolia, with a focus on infrastructure and access to Chinese coal markets."

The company's mantra quickly grew bolder, reflected in its June quarterly report which stated its aims to become "a major force in the exploration and development of coking and thermal coal deposits in the world-class South Gobi and Middle Gobi coal provinces".

To this end Hunnu has set itself a four-year timetable in which to develop three coal mines within Mongolia.

These plans are well underway with trial mining having commenced at the Unst Khudag coal mine, in which Hunnu holds a 60% interest.

The open cut mining will be assessed for modelling a larger upscaled open cut mine while the mined coal will undergo bulk testwork for potential offtake customers, a number of which Hunnu is already in advanced discussions with.

Other recent acquisitions include a 60% interest in the Buyan coking coal project located within the Tavan Tolgoi coking coal field and 5 kilometres from operating coal mines currently exporting to China.

Hunnu has also acquired a 90% interest in the Tsant Uul coking coal project and 60% of the Tsohio coal project, located approximately 40km south of the company's Khuree-2 coal project in the Umnugobi province of Mongolia.

Doray Minerals hit the boards of the ASX four days prior to Hunnu Coal and also wasted no time in establishing itself as an emerging force in its particular sector.

Doray's transition from exploration hopeful to potential producer came early in the form of some substantial gold hits from the first four holes of its maiden drilling program at its Andy Well prospect (Doray 80%), located within the Meekatharra North project in the Murchison region of Western Australia.

This resulted in the company share price soaring to almost quadruple where it has constantly maintained its value since.

Subsequent drilling carried out at Andy Well has extended the Wilber Lode with two step-out diamond drillholes hitting visible gold mineralisation in quartz lode at vertical depths of approximately 162m and 176m.

"These intersections are highly significant and provide us with added confidence that the Wilber Lode could potentially be a significant highgrade underground resource," Doray minerals managing director Allan Kelly said recently.

Apollo Gas made a distinguished entry when listing on the ASX by debuting at double its issue price.

After an initial offer price of 20c per share, the Sydney-based company opened at 36c and touched a high of 45c before settling lower at 40c.

Apollo listed on the back of 100% of seven exploration licences covering about 23,600 square kilometres in the Sydney-Gunnedah Basin, where it has successfully flowed gas during drill stem testing of its Cuan-l well in PEL 456.

The company also snapped up two geothermal licences that will allow it to assess the potential for a renewable energy resource in the Sydney-Gunnedah Basin.