MONGOLIA - Significant coal at CN project

A due diligence drilling program at Lucky Strike Resources’ CN coal project in central Mongolia has encountered significant coal mineralization in seven out of eight holes. The property covers 13,096 hectares about 175km southwest of the capital Ulaanbaatar in Tuv Aimag.

The seven holes to intersect coal were beyond the previously drilled area and expand the mineralization zone from 8sqkm to 24sqkm. Two of the drill holes, which were spaced about 900 metres apart on strike, each intersected about 39 metres of coal mineralization in individual seams.

Lucky Strike says its main focus was to determine the potential to increase the known mineralized area by means of step-out drilling. The company also completed proximate analysis, ash fusion, wash sink and float testing for a number of the core hole samples to understand the commercial potential of the CN coal deposit in terms of the coal quality.

The results showed thermal coal quality values, a high degree of washability and other coal characteristics suitable for coal-fired boiler systems. The potential for a sizeable deposit and commercial use of the CN coal deposit are important factors for Lucky Strike to consider in its decision of whether to advance the project.

Lucky Strike chief executive officer Cathy Fong says, “Considering the positive confirmation of the coal deposit and significant extension of the known mineralized area by the step-out drilling program results, Lucky Strike will aim to further explore the CN project to test the potential to further increase the size of the coal deposit.”

The company says the five coal seams to be intersected on the property so far dip gently north-eastward into the licence area from the western boundary, which indicates the interior of the property has additional coal resource potential. Lucky Strike will continue drilling and mapping to confirm further mineralization and the depth of any new seams.

www.luckystrikeresources.com