Viking Mines has issued a letter of intent to drilling contractor Ellehcor LLC in relation to the provision of drilling services for the Berkh Uul Coal Project in northern Mongolia. Ellehcor, a well-established drilling contractor with extensive experience in coal, is based in Ulaanbaatar.

The proposed drilling program will involve vertical pre-collar and HQ/PQ size diamond core drilling to a maximum depth of 200 metres on a grid-based pattern, infilling and extending the existing drilling coverage. Planned total metreage will be a minimum of 2000 metres.

The program is scheduled to commence this month and it is expected that the results will contribute to an update of the existing JORC (2012) 38.3 million tonnes coal resource, provide additional information for input into the approvals process for a mining licence, and provide further coal quality information for input into the planned Berkh Uul feasibility study.

Berkh Uul is 200km east of Darkhan city and within 40km of rail access to the existing Trans-Mongolian Railway which provides a transport link to Darkhan to the south and Russia to the north.

The deposit consists of shallow, consistent coal seams of high quality bituminous coal amenable to open pit mining. Discussions with nearby cement works and power stations confirm a local industrial demand for unwashed Berkh Uul coal due to its low ash and relatively high calorific value. This have been evidences by the signing a four non-binding Memoranda of Understanding with Darkhan Thermal Power Plant, Erdenet Power Plant, Darkhan Metallurgical Plant and the Khutul Cement and Lime Plant.

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