C @ Limited kicks off exploration on coal licences in Mongolia
Perth-based C @ Limited (ASX: CEO) has commenced an interesting exploration program on the Mongolian coal licenses it currently has under an option agreement, and has mobilised a rig to commence drilling in South Gobi province.
The option agreement, announced 20 April 2011, has a 10 week due diligence period which commenced on 6 May 2011.
The company said it has made significant progress on its due diligence, which has been extended to include the exploration program.
The exploration program will gain a greater level of understanding of the licenses prospectivity, along with validating due diligence material provided by the licence holder.
C @ Limited and its local partner Trinity Mongolia Pty Ltd have reviewed the data room information on the eight licenses since signing the agreement providing confidence to move ahead on exploration.
The mining authority and local government applications for the exploration work have been approved.
The exploration program will include up to 5,900 metres of diamond core drilling and up to 1,200 metres of trenching on both the South Gobi and Ovorhangay province licences. A reputable drilling contractor has been appointed.
The company will undertake geophysical logging on all drill holes and coal sampling from the exploration program will be transported to the SGS laboratory in Ulaanbaatar for quality testing.
C @ Limited expects the drilling program to be complete within five weeks with an additional two weeks for completion of any remaining coal samples for quality testing.
Due diligence work also includes a legal review of the licenses which is expected to be complete shortly.
On April 20 C @ Limited shares spiked 60% after entering into the option to acquire the eight prospective coal licenses in Mongolia.
The company also entered into an agreement with PT Ethica Trada Cermelang (Ethica) on April 28 to secure in‐country representation in Indonesia to acquire and develop high quality coal assets.
C @ Limited is currently engaged in supplying wholesale optical frames and lenses to opticians. During 2010 it announced that it would search for opportunities in the coal resources sector.
C @ Limited last traded at $0.051 per share.
The option agreement, announced 20 April 2011, has a 10 week due diligence period which commenced on 6 May 2011.
The company said it has made significant progress on its due diligence, which has been extended to include the exploration program.
The exploration program will gain a greater level of understanding of the licenses prospectivity, along with validating due diligence material provided by the licence holder.
C @ Limited and its local partner Trinity Mongolia Pty Ltd have reviewed the data room information on the eight licenses since signing the agreement providing confidence to move ahead on exploration.
The mining authority and local government applications for the exploration work have been approved.
The exploration program will include up to 5,900 metres of diamond core drilling and up to 1,200 metres of trenching on both the South Gobi and Ovorhangay province licences. A reputable drilling contractor has been appointed.
The company will undertake geophysical logging on all drill holes and coal sampling from the exploration program will be transported to the SGS laboratory in Ulaanbaatar for quality testing.
C @ Limited expects the drilling program to be complete within five weeks with an additional two weeks for completion of any remaining coal samples for quality testing.
Due diligence work also includes a legal review of the licenses which is expected to be complete shortly.
On April 20 C @ Limited shares spiked 60% after entering into the option to acquire the eight prospective coal licenses in Mongolia.
The company also entered into an agreement with PT Ethica Trada Cermelang (Ethica) on April 28 to secure in‐country representation in Indonesia to acquire and develop high quality coal assets.
C @ Limited is currently engaged in supplying wholesale optical frames and lenses to opticians. During 2010 it announced that it would search for opportunities in the coal resources sector.
C @ Limited last traded at $0.051 per share.
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