TerraCom Uncovers New Coal Deposit in Mongolia

TerraCom Limited (ASX:TER) reports that an exploration program targeting shallow open cut mineable coal within its Mongolian Mining licences along the projected 50km of Noyon coal basin sub crop of has uncovered a new permian coal deposit 12 km south of the BNU coking coal mine infrastructure. TerraCom has been exploring the area since last year when the company purchased the Blair Athol coal mine Mongolia.

As quoted from the press release:

The new deposit, further referred to as BNU South, was initially identified using multi stage ground geophysics to determine target areas utilizing ground magnetics followed by Gradient arrays (IP survey) to define 5 km of Permian target strike for exploration. Phase 1 drilling consisted of 42 PCD holes for 6,803m utilizing three Drill-Tech HYDX-5A drill rigs supplied and operated by Universal Drilling LLC.

Coal intersections occurred along the 5 km of strike drilled. Very thick coal intersections, with up to 122m total gross coal, were determined within what is now considered a “high priority area” for further drilling, approximately 600m long by 300m wide. The large shallow coal intersections in this area are by far the thickest thus far discovered within the Company’s licenses in Mongolia.

TerraCom has already commenced phase 2 drilling with focus on the high priority area of thick coal intersections, to increase geological confidence. Exploration will include PCD drilling and PQ core drilling. In parallel, work streams have been activated to expedite the commencement of mining this deposit on the assumption further exploration will confirm the target.

“this deposit, if proven, has the potential to significantly reduce operating costs and increase output from the BNU mine,” said chairman Wal King.

Click here to read the full press release