Hunnu Coal has acquired a 60% interest in the Tsohio Coal Project which is about 40km south of the company's Khuree-2 coal project in the Umnugobi Province of Mongolia.
Tsohio is between the giant Tavan Tolgoi coking coal field and South Gobi Energy Resources coal field, and is 60km north of Mongolian-Chinese border.
The granted exploration licence has an area of 38,600 hectares and the project is highly prospective for both coking and thermal coals.
Tsohio has had limited past exploration. Due diligence work by Hunnu Coal has discovered a coal seam outcrop that is about 3km in strike length.
This coal seam has also been intersected in a single trench with a thickness of about 5 metres. Based on this work the company has an exploration target for the project of 50 million to 75 million tonnes and is planning an aggressive exploration program.
At the Khuree-2 project an extensive mapping and geophysics program is in progress with the aim of identifying coal seams. This work will be followed by a drilling program starting this month.
At the Tenuun-2 Coal Project, 80km north of Tsohio, the company is conducting a mapping and geophysics program. A single vertical drill hole completed at Tenuun-2 intersected three coal seams with combined true thickness of 12 metres.
The average results of the core analysis showed ash (dry basis) of 15.8%, volatile matter of 27.81%, sulphur of 0.49%, Q (dry basis) of 5445 kCal/kg, and Q (dry, ash free) of 7071 kCal/kg.
The company is very encouraged by these results and further drilling is planned at Tenuun-2. An independent geologist has started the process of calculating a JORC compliant resource statement for historical work completed at Tenuun 2.

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