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Viking Mines: Berkh Uul environmental baseline studies begin

Published: 09:30 11 Sep 2014 EDT

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Viking Mines (ASX:VKA) has advised that Auminco Mines has engaged a Mongolian consultancy group to commence environmental baseline studies for its Berkh Uul coal project in northern Mongolia.

This is a significant and required component of the application process for a mining licence for Berkh Uul.

Berkh Uul is strategically located about 40 kilometres to the existing Trans-Mongolian Railway and has existing JORC Resources of 38.3 million tonnes of bituminous coal.

Auminco, an unlisted public coal development company is currently the subject of a takeover offer by Viking, for which acceptances are now above 97% and is unconditional.

Environmental Base Line Study


Sustainable Environmental Consulting (SEC), a well- established Mongolian based consultancy group specialising in environmental impact assessments, has been engaged to undertake the study.

The baseline survey will involve collection of information on regional and local environmental aspects including air quality, water studies, flora and fauna biodiversity, landscape, noise and dust, plus social aspects including land utilization, socio-economic conditions, cultural heritage and a survey of local inhabitants.

The SEC baseline study will be conducted in accordance with Mongolian Laws on Environmental Protection, Conducting Environmental and Social Impact Assessments and Regulations on Environmental and Social Impact Assessment, as required by the Mongolian Ministry of Environment and Green Development.

SEC will commence the study this week, with the final report due in two months.

In addition to providing information for input into the approvals process for a mining licence for Berkh Uul, results from the study will also provide baseline environmental and social data for input into the planned Berkh Uul feasibility study.

Berkh Uul Project

The Berkh Uul bituminous coal project is located in the Orkhon-Selenge coal district in Selenge Province, Northern Mongolia, approximately 40 kilometres from the Russian border and 200 kilometres east of Darkhan City.

Notably, it is located just 40 kilometres to the existing Trans-Mongolian Railway, which provides a transport link to Darkhan to the south and Russia to the north.

Notably, the project has already signed four non-binding memoranda of understanding with Darkhan Thermal Power Plant, Erdenet Power Plant, Darkhan Metallurgical Plant, and the Khutul Cement and Lime Plant relating to future potential coal supply.

Berkh Uul occurs in the Upper Jurassic - Lower Cretaceous age Sharin Gol Formation within the Orkhon-Selenge Coal Basin, which also hosts a number of large hard coal deposits including the Mongoin Gol, Shariin Gol and Ulaan Ovoot deposits.

It consists of shallow, consistent coal seams of high quality bituminous coal amenable to open pit mining.

Berkh Uul coal is of sales quality without washing. There is potential to further value add to the resource by washing and producing a high quality, high energy thermal coal suitable for export markets.

Mining studies are planned for 2014 to accompany a Mining Licence Application to be lodged during 2014.



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