Hunnu’s initial JORC resource for Mongolian coking coal project

Hunnu Coal (ASX: HUN) has announced an initial Coal Resource to JORC Code reporting standards for the Tsant Uul Coking Coal Project.

The Tsant Uul Project is in an ideal location for the development of a coal mine and is strategically located within 40 km of the giant Tavan Tolgoi Coking Coal Field in the South Gobi Province of southern Mongolia.

Key points:

• Initial Coal Resource of approximately 90Mt, with 61Mt in the Measured and Indicated JORC categories (34Mt Measured, 27Mt Indicated).
• Operating road coal haulage to China peripheral to project.
• Proposed rail line to China peripheral to project.
• Extensive drilling programme underway, with six drilling rigs operating on site. An additional two drilling rigs are being mobilized to site.
• With further drilling considerable potential exists to both expand and increase the Coal Resource at the Tsant Uul Project.
• The process for the application of a Mining Licence has commenced. Hunnu is completing a study with the aim of generating initial production in the latter half of 2011.
• The coal quality analyses of five drill core samples showed Total Moisture = 3.99% to 6.51%, Ash = 17.54% to 39.01%, Volatile Matters = 22.02 to 42.44%, Fixed Carbon = 35.85% to 42.31, Sulfur = 0.28% to 0.65% and the gross Qdaf = 7,008 kCal/kg to 7,455 kCal/kg, and FSI (Raw Coal, including ash) = 1.54 to 1.69.
• Hunnu Coal now has total Coal Resources to JORC Code reporting standards of over 400Mt across its Projects, with new Coal Resources currently being estimated for both the Unst Khudag and Tenuun-2 Projects.

The Company has a 90% interest in the Tsant Uul Coking Coal Project, which covers over 59,000Ha in the World Class South Gobi Coal Province of southern Mongolia. The project is located forty kilometres to the south of the giant Tavan Tolgoi Coking Coal Deposit and approximately five kilometres from the existing coal haulage road to China.

The Company has now completed a total of 28,029 metres of drilling for 187 drill holes targeting coking coal.