Aspire identifies Mongolian coal seam

THE DRILL SERGEANT: Northern Mongolia-focused coal play Aspire Mining has identified a new coal seam formation.

The seam is located around four kilometres from the resource area at the company’s Ovoot coking coal project in Northern Mongolia.

The company currently has four drilling rigs working to determine the resource potential of the area.

Aspire has completed 5,000 metres of exploration drilling as part of its 2011 program, in addition to infill, geotechnical and hydrological drilling.

A further 5,000 metres of exploration drilling is expected by the end of calendar year 2011.

“The exploration team has now intersected coal in three holes approximately four kilometres to the north east of the existing resource area,” Aspire Mining managing director David Paull said in the company’s announcement to the Australian Securities Exchange.

“The coal was logged as hard, bright or sugary coal and we now need to understand the extent of this coal seam.

“We have pre-collared a number of the holes to start core drilling to get coal quality data and determine the extent and orientation of the mineralisation.

“This will indicate whether the coal shallows and thickens as we head further south towards the resource area.”

Results from the three holes – which are 1.7 kilometres apart – included:

–    A total of 2.8 metres of coal from 261 metres;

–    A total of 3.1m of coal from 366m; and

–    A total of 3.1m of coal from 338m.

Aspire has a magnetics program planned in order to determine the structure and shape of the Ovoot Basin and to aid in the identification of possible shallower coal seams.

“With this view of the coal being closer to the base of the Jurassic sediments, it is now evident that potential coal is still open to the north east and east of the existing resource area,” Paull continued.

“We are currently exploring this area as part of the extensions to the Ovoot Resource area and to further determine the potential resource.

“Currently four drilling rigs from two drilling companies are on site at Ovoot with a fifth large-capacity rig expected later in October.

“It is expected that all rigs will be available to continue drilling through the winter.”

A larger Coretech 1800 rig has recently arrived on site, which means the company is now able to drill the holes that are required to be deepend.

This will enable it to test for the potential coal seam extensions.

Aspire is also set to commence a close spaced magnetics program as a supplement to existing seismic data and to help guide interpretations.

The company is now considering ground versus airborne options to address the whole Ovoot Basin, which Aspire considers will provide it with an effective exploration targeting tool going forward.