The project consists of two exploration licenses and one mining license covering approximately 59,000 hectares of area. The mining license covers approximately 1,600 hectares, on which the relevant government authority has approved the mining of 98.7mt of coal.
Exploration programs undertaken at Unst Khudag have included mapping at various scales, trenching, geophysical surveys and drilling. A total of 39 drill holes have been completed to depths less than 100mt deep.
Drilling has intersected a single coal seam with thicknesses varying from 5mt to 31mt. The coal seam has approximately 4mt of unconsolidated overburden and dips under cover gently at zero to five degrees.
This is said to be a major transaction for Hunnu coal that will quickly move the company from explorer to near term producer. The company is continuing to assess several additional acquisition opportunities.
