(MENAFN- ProactiveInvestors)
Aspire Mining () and Noble Group (SGX:N21) have lifted their interest in the Nuurstei Coking Coal Project in Mongolia to 90% from 60% for US$201500.
This follows the recent coal geology report that established an Exploration Target of between 15 million and 25 million tonnes for the project.
Aspire also recently secured a 12 month option to acquire Noble’s 50% interest in the Ekhgoviin Chuluu Joint Venture which if exercised would increase Aspire’s attributable interest in Nuurstei to 90%.
Planned exploration work includes core drilling and coal quality testwork to confirm coal seam continuity and coal quality across the tenement and enable a JORC Resource Statement to be compiled.
A potential Scoping Study will be completed pending positive exploration results.
The Mongolian vendor’s interest will dilute to 10% of Nuurstei.
A further US$200000 is payable should a Mining License be granted in respect the Nuurstei Exploration licenses.
Aspire has had a strong start to its capital raising with pre-commitments totalling $2.1 million as part of $6 million sought to advance its Mongolian coking coal projects.
Nuurstei Coking Coal Project
Nuurstei is located approximately 10 kilometres to the south west of Moron the capital of the Khuvsgul province in northern Mongolia.
A paved road has been constructed between Moron and the town of Erdenet where existing rail infrastructure terminates.
Coal produced at the Nuurstei project could potentially be transported along this road to Erdenet where product could then be loaded onto trains and delivered to customers.
With the potential future development of the Erdenet – Ovoot railway a lower cost and higher capacity transport route will become available from 2018 subject to rail construction commencing in 2015.
Nuurstei could comprise a shallow multi-seam open pit mining operation with a low strip ratio particularly in the eastern part of licence 13580x which hosts relatively shallow seams.
Further drilling work to be completed during the 2015 exploration program is required towards the western section to identify coal deposit depth and potential mining economics.
Noble Group has 100% of the marketing and supply chain rights with respect to the Nuurstei project.
Nuurstei Coal Quality
In January 2015 the ECJV received coal quality results from a composited sample taken from the single core hole from the 2014 exploration program.
Quality results from NUDH012 categorised the coal as bituminous mid volatile coal confirming the presence after beneficiation of a quality hard coking coal displaying a high caking “G” index and low volatile matter at Nuurstei.
While additional work is required to confirm coal quality across the entire deposit which will be included as part of the 2015 exploration plan these are extremely positive results.
High quality coking coals such as that found in NUDH012 are in particular high demand by Chinese users within a blend primarily due to the low ratio of these coals in China’s own reserves and the growing requirement for higher quality coking coals in the coke industry.
Demand for high quality coking coals are increasing faster than their low quality counterparts as China trends towards the use of larger blast furnaces to achieve higher productivity use of advanced technology and balancing environmental concerns.
Analysis
Following the ECJV increasing its stake in the Nuurstei Coking Coal Project to 90% Aspire Mining has a pipeline of news as the ECJV moves to carry out core drilling and coal quality testwork define a JORC Resource and complete a potential Scoping Study.
Previous work from Nuuurstei returned extremely positive results indicating the presence of high quality coking coals.
This is in demand by Chinese end-users as a blend primarily due to the low ratio of these coals in China’s own reserves.
High quality coking coals are in demand faster than low quality coal as China trends towards the use of larger blast furnaces to achieve higher productivity to balance environmental concerns.
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