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Aspire Mining, Noble Group intersect near-surface coal at Nuurstei

Published: 05:34 30 Sep 2014 EDT

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Aspire Mining (ASX:AKM) and Noble Group have confirmed the prospectivity of their Nuurstei Coking Coal Project in northern Mongolia with coal intersected in all six exploration holes drilled to date.

Shares in the company should trade higher today.
    
Near surface coal was also intersected in multiple seam packages, highlighting the potential for an open pit mineable resource that could support a small road based trucking operation.

The thickest intersections so far are 10.25 metres from 24.95 metres and 9.79 metres from 184.9 metres at NDH1006.

Seven holes from the 2011 exploration program have also been successfully reopened and geophysically logged.

Seams have been logged at a relatively steeply dipping average of 50 degrees with continuity between holes along 1.5 kilometres of strike yet to be established.

Exploration is continuing to identify additional near surface coal along strike.

Raw coal quality testing will also be required to confirm ash and coking properties.

The current drilling program is expected to be completed by mid-October 2014, with laboratory analysis expected to be received in the December quarter.

Aspire owns an interest in the Nuurstei Project through its 50% ownership in the Ekhgoviin Chuluu Joint Venture (ECJV) with Noble Group.

ECJV currently holds a 60% interest in Nuurstei and can increase this to 90%.

Drilling Results

Exploration drilling at Nuurstei commenced earlier this month and is expected to be completed mid-October. 

This program is designed to test resource continuity of coal, and to target near surface coal resources which could support a small road based tucking operation. 

The work follows on from an earlier exploration program completed at Nuurstei in 2011.

All six exploration holes drilled to date have intersected coal seam intervals, some with claystone partings.

The thickest intersections so far with apparent thickness of 10.25 metres from 24.95 metres and 9.79 metres from 184.9 metres occurred in hole NDH1006.

This intersection of near surface coal could present the possibility of an open pit minable resource, subject to further work being completed, continuity of coal seams confirmed and sufficient tonnage being identified.

Raw coal quality testing will be required to confirm ash and coking properties. 

Down hole geophysics from both the re-logging of the 2011 holes and the holes completed so far in the 2014 program indicate densities in parts of the coal seam intervals, averaging between 1.3 to 1.4.

This suggests that moderate to low raw ash levels are expected in those coals, indicative of a possible coking coal product.

Nuurstei Project


The Nuurstei Project is located about 10 kilometres to the southwest of Moron, the capital of the Khuvsgul province in northern Mongolia.

A paved road is currently being constructed between Moron and the town of Erdenet, where existing rail infrastructure terminates. Sealing of this road commenced in 2012 and is due to be completed at the end of 2015.

Coal produced at the Nuurstei Project could be transported along this road to Erdenet where product could then be loaded onto trains and delivered to customers. 

Land purchased at Erdenet by Aspire in 2012 could be used as a coal stockpile and train load-out area.

In addition, the project could also become a user of the Northern Rail Line, a new rail development project earmarked for Northern Mongolia which will link through to export markets.

Analysis

While it is still early days at Aspire Mining’s Nuurstei Coking Coal Project, the intersection of near surface coal indicates potential for an open pit mineable resource.

This could support a small road based trucking operation that could provide the company with early cash flow ahead of the construction of rail infrastructure.

As such, drilling is continuing to intersect coal to build strike length and prove continuity between seams, giving investors something to look forward too as more results are released.

That all six exploration holes drilled to date have intersected coal is also a positive, confirming the prospectivity of the project.
    
Aspire is also continuing to progress its advanced Ovoot Coking Coal Project.



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