Newera Resources has identified a potential Permian Coal at its Ulaan Tolgoi project in southern Mongolia

Newera Resources (ASX: NRU) has identified a potential Permian Coal sequence from initial interpretation of data from the first seismic line recorded over its Ulaan Tolgoi project in southern Mongolia.

Ulaan Tolgoi is located in the South Gobi Province, which also hosts the giant Oyu Tolgoi copper mine development.

The Line B data indicates the Late Permian sediments occur in a relatively flat lying package at depths of about 100 metres to 200 metres under Quaternary and Cretaceous cover sediments.

These are recognised as possible P2 units with potential coal bearing units.

In addition, the previously postulated Sonduult Thrust fault is clearly mapped by the survey. The Sonduult thrust fault is postulated to be an eastern extension of the Nariin Sukhait thrust fault which is a prominent structural feature further to the west.

It also noted that the discovery of well rounded Permian pebbles that appear to have weathered out of the underlying Late Permian strata suggests the Permian strata may come close to surface in several locations.

Future work

Newera is close to completing the Line A seismic and is planning to acquire two new seismic lines that will step out on either side of Line B to determine continuity of strike of the interpreted Permian strata and to allow for the positioning of drill hole collar locations for future exploratory drill holes.    

It will now complete ground magnetic surveys along all seismic lines completed under this current seismic survey.

The seismic and ground magnetic surveys are expected to be completed by 25 October 2013. Interpretation and modelling will follow.