Hunnu
Coal has acquired a 60% interest in the Tsohio coal project, about 40 km from
its existing Khuree 2 project. The Tsohio project has an exploration target of
between 50 million tons and 75 million tons, and the company said it would
embark on an “aggressive exploration” program.

Meanwhile,
a mapping and geophysics program was in progress at the Khuree 2 coal project,
with the aim of identifying coal seams, which would be followed by a drilling
program, starting in July. Hunnu was conducting a mapping and geophysics
program also at the Tenuun 2 coal project, about 80 km from the Tsohio project.
A single vertical drill hole has intersected three coal seams, with a combined
true thickness of 12 meters.

The
company would be undertaking detailed exploration on the three projects over
the coming months, as part of its coking and thermal coal exploration strategy
aimed at making it a “major force” in the exploration and development of coking
and thermal coal deposits in the South Gobi project.