New NI 43-101 Compliant Resource Estimate For SouthGobi’s Ovoot Tolgoi Complex in Mongolia Increases Measured plus Indicated Resources by 14%, Includes New Coking Coal Deposit

SouthGobi Resources Ltd. (TSX:SGQ) has received an updated, independent NI 43-101 compliant Resource estimate for the Ovoot Tolgoi Complex, reporting Indicated coal Resources of 302.3 million tonnes (approximately 14% increase), with an additional Inferred coal Resource of 86 million tonnes (approximately 11% decrease). The Company has also received an updated independent NI 43-101 compliant Resource estimate for its Soumber Deposit, consisting of the Central Soumber, East Soumber, Biluut, South Biluut and Jargalant Fields.

As quoted in the press release:

Updated NI 43-101 compliant coal Resources and Reserves for Ovoot Tolgoi Complex in Mongolia – Measured plus Indicated Resources increase by 14% to 302.3 million tonnes and Inferred Resources are 86 million tonnes, Proven and Probable Reserves increase by 65% to 175.7 million tonnes

Updated NI 43-101 compliant coal Resource for Soumber Deposit – Measured plus Indicated Resources increase by 124% to 137.3 million tonnes and Inferred Resources increase by 26% to 83 million tonnes

Inaugural NI 43-101 compliant coal Resource for Zag Suuj Deposit – Measured plus Indicated Resources of 17.0 million tonnes and Inferred Resources of 66 million tonnes

SouthGobi President and CEO, Alexander Molyneux, said:

“We are very pleased and excited about the updated resources and reserves at SouthGobi,” “In addition to operating our flagship Ovoot Tolgoi mine, we continue to be a true exploration company, differentiating us from most of our Chinese and Mongolian peers. Our overall finding cost for new resources is a mere $0.17/tonne. Our significant resources will be the basis f or substantial volume growth over the next 5-7 years as we establish their economic viability and subsequently bring these properties into production.”

Click here to read the SouthGobi Resources Ltd. (TSX:SGQ) press release