Modun Resources, formerly TVN Corporation, has announced a maiden JORC-compliant resource of 489 million tonnes at the Nuurst Thermal Coal Project in central Mongolia. The resource comprises 417 million indicated tonnes and 72 million inferred tonnes.
The resource estimation compiled by CSA Global exceeds the company’s initial expectations and provides potential for a large-scale coal mine. Modun had established a target of 200-300 million tonnes.
Nuurst is 120km south of Ulaanbaatar and comprises a 34.5sqkm licence area. It is just 6km away from rail infrastructure which will provide direct transport to the Chinese border 210km away.
Modun, which acquired the project in June 2011, says the significant resource and coal seam thickness (100+ metre coal sequences) should translate into a low stripping ratio, which lends itself to a large-scale, low-cost mining operation.
As a result of the rapid resource discovery, Modun plans to immediately begin a scoping study.
The resource pertains to only 16% of the licence area with modelling suggesting that the resource is open to the north and becomes shallower. This area will be the focus of the 2012 exploration program which will target further coal seams. In addition, the company will progress a mining licence application.
Modun Resources’ managing director Chris Mardon says, “The JORC reportable coal resource has confirmed our belief that we have a valuable asset to develop. The close proximity to infrastructure and a major coal market adds to the potential for a large-scale project.
“These results propel Modun to having one of the largest tonnage coal resources of the ASX-listed companies currently operating in Mongolia. Furthermore, we believe we have a substantial project on just 16% of the licence area. We also see significant exploration upside – we are yet to unlock the full value of this licence.”