General Mining Corporation has clinched a deal to acquire a 100% interest in 19.6 square kilometres exploration licence in Mongolia for the purpose of coal exploration.
Exploration licence 15206X is adjacent to the current exploration properties at the Uvs project owned by General Mining's 100% owned local subsidiary Golden Cross.
Licence 15206X is located 200 metres west of the Khuden Coal Deposit, as well as the Company licences 14404X and 13848X cover parts of an inter-mountain basin detached from the major Uvs Basin. The prospectively of General Mining Uvs licences for coal exploration can be gleaned via the adjacent Khuden Coal Deposit where Russian category A to C2 coal resources were estimated to a depth of 30 metres based on 1977 drilling and trenching and further extended by diamond drilling in 1984 and 1985.
The staged acquisition will see a 50% of the exploration licence interest acquired with the payment of a non-refundable deposit of US$100,000 on execution of this agreement. An additional non-refundable payment of USD 300,000 is payable after the initial legal, technical, financial and regulatory due diligence period that expires 60 days after the vendor obtains all necessary approvals to permit exploratory drilling by Golden Cross.
Interestingly, this Lower Carboniferous sedimentary geology is known to host at least 7 black coal seams discovered at the Khuden Deposit in the centre of this inter mountain basin. The Khuden coal deposit was discovered in 1971 and amid some limited subsequent coal exploration in the 1970-80s which was focused on 800 meters by 1,300 meters area just outside licence 15206X and the company’s licences where several coal seams outcrop amidst predominantly sandstone strata.
Most of the Lower Carboniferous geology outside this coal outcropping area remains largely unexplored including the central part of this basin covered by shallow Quaternary alluvial sediments.
The prospectively of the wider inter-mountain basin for discovering possible extensions of the gently dipping Khuden black coal seams was suggested by some original historical exploration reports and confirmed by two independent geological reviews commissioned by the Company in 2008.
(Sourced from www.proactiveinvestors.com.au)
