Guildford Coal eyes Mongolian coal production within a year, acquires additional land

Guildford Coal (ASX: GUF) has highlighted that it’s not just Australian coal companies coming onto the acquisition radar – and has completed a US$3.5 million acquisition in the South Gobi coal bearing basin in Mongolia. The new acquisition exploration permit adjoins the existing South Gobi Project tenements which expands the scale potential of the coking and thermal coal project.Guildford is already eyeing the possibility of becoming a coal producer within a year in the South Gobi, due to the strategic location close to the Chinese border station of Ceke – where coal from Mongolia is already trucked into China.

Mick Avery, managing director, commented on the company’s operations, and said “Exploration is confirming the targets and that Guildford is progressing to the establishment of JORC-compliant resources on three of our priority projects at Hughenden in Queensland and South Gobi and Middle Gobi in Mongolia”.

Independent geologists have developed an exploration target of 0 to 122 million tonnes for the new tenement, taking the target for the South Gobi Project to 0 to 582 million tonnes.

Guildford said an exploration target has also been developed of 29 to 149 million tonnes for the Middle Gobi Project – which takes the total target for Guildford’s portfolio of Mongolian Projects to 29 to 731 million tonnes.