Newera Resources (ASX: NRU) has started its second drilling program at its Shanagan East coal project in Mongolia that is designed to test for further extensions to known coal seams.

The three to four hole program, which will be deeper than the initial program, will also recover coal samples for washability testing at the SGS Laboratories in Mongolia.

Newera has also received results of a 15 line kilometre Induced Polarisation survey and has being combined with data from the initial drilling program to create a geophysical model.

This has resulted in the identification of two new potential 500 metre wide coal bearing zones located about 700 metres and 1,000 metres west of previously identified coal seams.

These two new coal bearing zones are located on IPDD lines A and B which appear to significantly extend the potential coal measures.

In addition, 13 new drill hole collar locations are being considered for potential inclusion in Newera”s future drill programs.
   
The holes are designed to give future drilling the best possible chance of intersecting wide competent coals seams.

The Shanagan Project comprises one exploration license covering an area of over 2200 hectares in a known coal bearing region, 140 kilometres southeast of Ulaanbaatar, Mongolia.

The project is located close to existing infrastructure with a rail line only 50 kilometres away. That line services the nearby Baganuur lignite coal mine, and connects to the trans-Siberian railway which services China in the South to Russia in the North.