Aspire Mining increases coking coal Reserve at Ovoot in Mongolia

August 01 09:05 2013 Print This Article

www.proactiveinvestors.com.au  July 31, 2013

Aspire Mining (ASX: AKM) has delivered a coal resource and reserve upgrade for the Ovoot Coking Coal Project, with re-modelling using all quality data from the 2012 drilling program, along with data from the adjacent operating Mogoin Gol Mine.

Aspire wholly-owns the Ovoot Project, which is confirmed as Mongolia’s second largest coking coal reserve.

Under the JORC Code the Ovoot Open Pit coal resources have increased by 10.3% to 253.1 million tonnes. Underground coal resources remain unchanged at 27.9 million tonnes. Xstract Mining Consultants Pty Ltd provided the updated JORC statement.

This brings the total coal resources for the project to 281 million tonnes, with 197 million tonnes Measured, 72.3 million tonnes Indicated and 11.8 million tonnes Inferred.

Ovoot’s probable coal reserve tonnes increased by 34 million tonnes to 255 million tonnes ROM, at a total moisture of 2%.

The probable marketable coal reserve increased by 8 million tonnes to 188 million tonnes, at a product moisture of 9.5%.

Importantly – the ROM strip ratio improved from 9.1:1 as estimated in the Pre-feasibility study, to 7.7:1.

David Paull, managing director, noted: “The increased understanding of the Ovoot Coking Coal deposit and the larger Reserves base increases the economic value of the Ovoot Project.

“The Resource model is now robust and the size of the prize well quantified. Initial production will be targeting the Upper seam where yields are greater than 80%, and which now benefit from the lower strip ratio.

“While there remains substantial exploration upside at the Ovoot Project, our focus now turns to assisting the Government of Mongolia in establishing the Northern Railways Ovoot to Erdenet railway.”


Extensive geological structural and seam re-interpretation

During the Mongolian winter, an extensive geological structural and seam re-interpretation of the Ovoot Open Pit Coal Resource area was undertaken by Aspire’s geological team.

The outcome is that the re-interpretation of the Ovoot Project’s geology has resulted in improved seam correlation and reduction in the number of seam PLY’s, comprising the Upper, Lower and OVB seams.

Aspire said that this improved the consistency of the coal seams and structural interpretation, giving increased confidence in the deposit – and allows additional tonnage to be included in the geological model.

A total of 96% of Ovoot Project Coal Resources are now classified in the high confidence Measured and Indicated categories.

Analysis

The new resource increase brings attention back to Aspire Mining, already in possession of the second largest coking coal reserve in Mongolia and one of the highest quality in the world.

Recent testwork that demonstrated Ovoot coal could be blended and upgrade Tavan Tolgoi coking properties firmly establishes Aspire Mining as a pre-eminent coal player in the country.

A lower strip ratio will also improve the economics of the project.

Aspire will now work with the government to establish the Northern Railways Ovoot to Erdenet railway, a catalyst of significant dimensions.


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Saranchimeg Enkhee
Saranchimeg Enkhee

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