The second drill program at Newera Resources’ flagship Shanagan East coal project in southern Mongolia is under way, to test for further extensions to known coal seams at the site. The program will consist of up to four deep holes to recover coal samples for washability testing at the country’s SGS laboratories.

The company has also received results of a 15 line kilometre Induced Polarization (IP) survey which have been combined with data from the initial drill program to create a geophysical model. From this model Newera has identified two new potential 500 metre wide coal bearing zones to the west of the previously discovered coal seams.

“These two new coal bearing zones appear to significantly extend the potential coal measures,” says Newera’s executive chairman Martin Blakeman. “In addition, 13 new drill hole collar locations are being considered for potential inclusion in Newera’s future drill programs. The holes are designed to give future drilling the best possible chance of intersecting wide competent coals seams.”

The Shanagan project covers an area of more than 2200 hectares in a known coal bearing region, 140km southeast of Ulaanbaatar. The project is close to existing infrastructure including a rail line which services the nearby Baganuur lignite coal mine and connects to the Trans-Mongolian railway which services China in the south to Russia in the north.

Newera is an emerging Australian coal producer with a goal of building and developing a portfolio of Mongolian licences.

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