General Mining Corporation builds up to coal exploration in Mongolia

General Mining Corporation (ASX: GMM) is progressing towards exploration at its thermal coal projects in Mongolia’s Uvs Basin.

The company has commissioned a coal consultancy group with experience in Mongolia to undertake a preliminary geological reconnaissance program in November 2011.

General Mining is preparing to begin a coal exploration program in the June quarter of 2012.

In addition to the reconnaissance program, the consultancy group will review historical geological and geophysical data.

Historical coal exploration reports along with two geological reviews from 2008 indicate prospectivity of deeper coal at the Khuden deposit and the possible extension of the Khuden coal seams to the west of the outcropping area.

General Mining has been expanding its coal holdings in Mongolia over the past two months.

The company is acquiring a 100% interest in a coal exploration licence adjacent to its exploration properties in the Uvs basin, and farming into another licence that covers the central part of the Khuden black coal deposit.

In conjunction with the coal exploration program, General Mining plans to progress potash exploration in the Uvs Basin.

The company recently completed the first stage of a potash exploratory drilling program in the basin.

Three out of six planned drill holes were drilled, although none encountered potash mineralisation.

The company was quick to highlight that the drilled holes tested only part of the ground within two of its five exploration licences, with a substantial area remaining to be explored for potash.

General Mining considers the area prospective for potash based on historical potash intersections in the Russian part of the basin, about 30 kilometres from the company’s exploration licences.

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