Modun Resources inks 489Mt maiden JORC thermal coal Resource in Mongolia

Modun Resources (ASX: MOU) has achieved a significant maiden JORC coal Resource of 489 million tonnes for its wholly-owned Nuurst Project in central Mongolia.

The Resource, compiled by consultancy CSA Global, exceeds initial expectations and provides potential for a large scale thermal coal mine. The Resource has been defined within six months of Modun acquiring Nuurst.

Modun now has one of the largest tonnage coal resources of the ASX-listed companies currently operating in Mongolia and the company believes it has a substantial project on just 16% of the licence area so far assessed.

The company will immediately commence a Scoping Study and application for mining licence.

A total of 417 million tonnes is in the Indicated category and 72 million tonnes is Inferred.

The 2012 exploration program at the project will target a further coal resource with 84% of the licence under-explored.

Importantly, Nuurst is located six kilometres from existing rail infrastructure, only 120 kilometres south of Mongolia's capital Ulaanbaatar and comprises a 34.5 square kilometre licence area.

Modun said the Project’s significant resource and coal seam thickness (100 metre+ coal sequences) should translate into a low stripping ratio, which lends itself to a large scale, low cost mining operation.

Modelling suggests the resource is open to the north and becomes shallower.

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