General Mining’s Mongolian subsidiary Golden Cross is working to acquire an interest in the Khuden Coal Deposit in the country’s far north-western Uvs province.
The company wants a share of the mining licence covering 51.6 hectares in the central part of the deposit that’s between two other areas of carboniferous sedimentary geology in which the company owns licenses. This acquisition will add to General Mining’s wholly owned Uvs Basin Project covering more than 2000sqkm over five exploration licences.
The company and a syndicate which holds the licence for the Khuden coal deposit are finalizing the terms of the joint venture agreement. Golden Cross says it is advancing discussions with a potential investor for the acquisition and working to complete the legal, technical and regulatory due diligence on the project.
Drilling at the deposit in the 1970’s and 80’s estimated the coal resources at Russian category A to C2 to a depth of 30 metres. This historic exploration focused on an 800 x 1300 metre area where several coal seams outcrop amid predominantly sandstone strata.
Independent geological reviews commissioned by General Mining in 2008 suggest there’s potential for discovering potential extensions of the Khuden black coal seams in the central part of the basin.