The key points in the report are:
· Initial Coal Resource of approximately 90Mt, with 61Mt in the Measured and Indicated
JORC categories (34Mt Measured, 27Mt Indicated).
· Operating road coal haulage to China peripheral to project.
· Proposed rail line to China peripheral to project.
· Extensive drilling program under way, with six drilling rigs operating on site. An additional two drilling rigs are being mobilized to site.
· With further drilling considerable potential exists to both expand and increase the
Coal Resource at the Tsant Uul Project.
· The process for the application of a Mining License has commenced. Hunnu is completing a study with the aim of generating initial production in the latter half of 2011.
Hunnu Coal now has total coal resources to JORC Code reporting standards of over 400Mt across its projects, with new resources currently being estimated for both the Unst Khudag and Tenuun-2 Projects. The company has a 90% interest in the Tsant Uul Coking Coal Project, which covers over 59,000Ha. It has now completed a total of 28,029 meters of drilling for 187 drill holes targeting coking coal.