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Khashaat Coal Project

The Khashaat Coal Project is located in the northwestern part of the Sayshand Province of Mongolia known as the Erdenetsogt Basin. The exploration licence covers 133 ha. Polo Mongolia has purchased the licence and has lodged the licence transfer with the Minerals and Petroleum Resources Authority of Mongolia.

The Khashaat Coal Project area is situated around 8.5 km west of the nearest town, Arshaantayn Hural City, which is around 184 km west of Choyr City, one of the largest cities in the northern part of the Sayshand Province. The location is around 240 km southeast of Ulaanbaatar and around 520 km north of China’s border. The nearest Mongolian railway line is around 75 km to the west of the Khashaat area.

The Khashaat Coal Project is at the preliminary exploration phase. Based on regional geology interpretation, the Khashaat coal bearing formation appears to be formed within an anticlinal structure trending west to east. The coal bearing formation in the Khashaat area is part of the Choir-Nyalga Basin.

A preliminary drilling exploration programme comprising of 45 boreholes covers the Khashaat project area. A site investigation by the technical consultants, SRK, of the current mining operation at Khashaat, located in the western part of the area, delineated the coal seam dipping gently (less than 30 degrees) at the subcrop in the hinge of anticline. The area consists of two main seams of which the lowest seam is significantly thick. The upper seam appears to be lenticular and therefore is not consistent across the deposit. The thickness of the upper seam ranges from 3 to 5 m. The lowest seam averages around 45 m in thickness and contains several stone bands. In the northern part of the Khashaat area, the coal unconformably underlies unconsolidated Quaternary sediments.

The Khashaat coal is predominantly composed of bright bands with several minor dull bands and thin partings. Minor secondary pyrite was found in the coal seam. Quality analyses from boreholes in the surrounding area indicate the seams in the Khashaat area have a calorific value ranging from 4,300 kcal/kg to 5,608 kcal/kg (adb). Based on these observations, SRK concluded that the coal is suited for the domestic thermal market. The preliminary geological model shows no indication of faulting, and based on the low stripping ratio, average 3:1, the Khashaat Coal Project area is also suited to opencut extraction.

Polo Mongolia plans to undertake further drilling to provide sufficient detail for a prefeasibility study.








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