Draig Resources on the hunt for coal in Mongolia, identifies priority targets
Draig Resources (ASX: DRG) has identified numerous Jurassic coal bearing drill targets following a geophysical survey of two of its coal licences in the Ovorhangay province in Mongolia, as it works towards defining a JORC Resource in the June quarter.
The targets identified within the Teeg and Nariin Teeg licences were relatively shallow and, at Teeg, could potentially include two laterally continuous synclinal features.
Drilling on Teeg undertaken by Draig in June 2011 intersected a broad 60 metre coal seam characterised by vitrinite‐rich massive hard black coal in the lower part of the seam.
A separate 40 metres of thick black coal seam was intersected from a depth of 89 metres, of which 30 metres was logged as consistently hard coal.
Importantly, the geophysical field work indicates the potential to define a substantial coal resource at Teeg.
The survey comprised 32 kilometres of geophysical (resistivity) survey work. A total of 12 lines of geophysical survey work were carried out on the Teeg licence and three lines on the Nariin Teeg licence at depths of up to 260 metres.
Draig is currently in talks with drilling contractors to undertake a two‐phase drill program.
Phase one will include 10 drill holes with a combined depth of about 2,200 metres to obtain samples for coal quality testing.
Phase two will aim to increase the resource size based on information from phase one and previous exploration work.
Re-listing
Draig re-listed on the ASX in early January as a new Mongolian coal company following the acquisition of eight highly prospective coal licences.
The company successfully raised A$17 million in new capital. Importantly, Draig now has sufficient funds for its 2012 exploration, further coal acquisitions and necessary working capital.
Drag is seeking further coking coal opportunities in Mongolia and Indonesia.
The targets identified within the Teeg and Nariin Teeg licences were relatively shallow and, at Teeg, could potentially include two laterally continuous synclinal features.
Drilling on Teeg undertaken by Draig in June 2011 intersected a broad 60 metre coal seam characterised by vitrinite‐rich massive hard black coal in the lower part of the seam.
A separate 40 metres of thick black coal seam was intersected from a depth of 89 metres, of which 30 metres was logged as consistently hard coal.
Importantly, the geophysical field work indicates the potential to define a substantial coal resource at Teeg.
The survey comprised 32 kilometres of geophysical (resistivity) survey work. A total of 12 lines of geophysical survey work were carried out on the Teeg licence and three lines on the Nariin Teeg licence at depths of up to 260 metres.
Draig is currently in talks with drilling contractors to undertake a two‐phase drill program.
Phase one will include 10 drill holes with a combined depth of about 2,200 metres to obtain samples for coal quality testing.
Phase two will aim to increase the resource size based on information from phase one and previous exploration work.
Re-listing
Draig re-listed on the ASX in early January as a new Mongolian coal company following the acquisition of eight highly prospective coal licences.
The company successfully raised A$17 million in new capital. Importantly, Draig now has sufficient funds for its 2012 exploration, further coal acquisitions and necessary working capital.
Drag is seeking further coking coal opportunities in Mongolia and Indonesia.
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