Draig Resources has identified numerous priority drill targets in a geophysical survey of the Teeg and Nariin Teeg properties, in Mongolia’s Ovorhangay province. The survey comprised 32km of resistivity work, with 12 lines on the Teeg licence and 3 lines at Nariin Teeg at depths of up to 260 metres.

It has identified that there may be two laterally continuous synclinal features of Jurassic coal at the Teeg deposit and the company is currently preparing a team of experienced coal geologists and drilling contractors to further define the target.

Draig’s managing director Mark Earley says the company is delighted with the survey results and particularly the shallow nature of the potential coal occurrences. “Although further exploration work is required, we believe that based on the findings of the interpretation, potential exists to define a significant coal resource at Teeg.

“We have now identified a series of drill targets we think are very worthwhile pursuing and which will potentially contribute to us being able to define a JORC resource by the second quarter of this year. We need to immediately progress with exploration and we are in detailed discussions with a number of parties to continue our 2012 exploration program,” he says.

A two-phase drill program will now be planned over 10 holes for a combined depth of 2200 metres to obtain samples for coal quality testing and to increase the resource size based on the new information.

Draig acquired eight highly prospective coal licences, including the Teeg prospect, in Mongolia’s Ovorhangay and South Gobi provinces in October 2011. The Ovorhangay licences are about 130km from the provincial capital Aryayheer and about 520km south west of the Mongolian capital Ulaanbaatar. Five holes were drilled on the Teeg licence during June and July 2011, where black coal seams measuring up to 60 metres were intersected.

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