Hunnu Coal has acquired a 90% interest in the Tsant Uul Coal Project which is within 40km south of the giant Tavan Tolgoi coking coal field in the world-class South Gobi coal province.
The acquisition of the 59,000 hectare project, which is about 6km from the existing coal haulage road to China and close to a proposed rail line to China, follows a successful due diligence program.
The program comprised 7 diamond core drill holes which intersected multiple coal seams with thicknesses up to 22.8 metres with partings.
Past test work indicated the potential for both coking coals and high value thermal coals.
There is an exploration target of 50 million to 100 million tonnes with an aggressive exploration program planned for the rest of 2010.
Tsant Uul will be greatly advantaged by the massive infrastructure projects being proposed and developed at the nearby Oyu Tolgoi Copper-Gold Project, the Tavan Tolgoi coal deposit and the expansion projects at the UHG coking coal mine.
Tavan Tolgoi is estimated to contain more than 6 billion tonnes of coking and thermal coal while Energy Resources LLC annually mines about 2 million tonnes of raw coking coal at UHG.

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