Ereen Coal Project
The Ereen Coal Project is
located in the western area of the Bulgan Province
of Mongolia known as the
The project area is situated
around 23 km northwest of the nearest town,
Prior to the purchase of the
licence, there was a small open pit mine operated by the
vendors. No detailed information regarding any
previous or current exploration activity in the Ereen
Coal Project area is available. According to field
observations by the independent technical consultants
SRK, the area consists of several thick seams (up to
four seams) which are interbedded with thin layers of
siltstone or shale. Total thickness of mineable coal
could be more than 10 m.
The coal appears to be
predominantly bright with minor dull bands, indicating a
potential high energy coal which contains an abundance
of vitrinite. The local miner at Ereen is currently
selling a raw coal product to the domestic thermal
market for around $12 per tonne.
Several thin layers of mudstone
and siltstone were observed by SRK in the coal seams
indicating high ash content. Removing this non-coal
material, either during mining or by beneficiation,
would result in increasing the calorific value of the
coal.
Preliminary exploration indicates
that the Ereen Coal Project has the potential to be
developed into an economic open cut coal mine servicing
the Mongolian domestic thermal market and the Russian
export market. Polo