Modun Resources has submitted its independently prepared Mongolian feasibility study for the Nuurst Thermal Coal Project with the Mineral Resources Authority of Mongolia (MRAM).
The study has been prepared to Mongolian standards and is required to be completed and submitted to MRAM for review before MRAM mining permit applications to commence mining.
In parallel Modun is working through the requirements to produce an internally recognized bankable feasibility report, subject to raising appropriate finance.
The Mongolian study was prepared by Absolute Mining LLC which has a strong knowledge of local conditions and costs. The study has identified the potential for a 136.9 million tonnes mine of sub-bituminous thermal coal for a 30-year mining operation, with annual production ramping up to 4.8 million tonnes of raw coal and 500,000 tonnes of dried coal briquettes by the fourth year of operation.
Indicative production costs are estimated at US$11.50 per tonne for raw coal over the life of the mine, at today’s costs, reflecting the low overall mining ROM strip ratio of 2.4:1.
Modun’s managing director Rick Dalton says, “The results from the Mongolian feasibility study provides further confidence in the viability of developing the Nuurst coal project into a low-cost producing mine. This study will also be used as the basis for completing the more detailed feasibility work required to secure funding for the development of the project.”
Nuurst encompasses a 2497 hectare mining licence area. In November Modun announced a 478 million tonne JORC-compliant coal resource with 326 million measured tonnes, 104 million indicated tonnes and 48 million inferred tonnes.
The project is 120km south of Ulaanbaatar and 6km from existing rail infrastructure which links directly into China.