Vancouver — Ramp up of
Nine delineation holes, collared along strike on seams M and T, have cut multiple coal intercepts ranging from 9-26 metres of estimated true thickness. Drilling confirms minimum strikes of 1.2 km for seam M and 1.4 km for seam T, with both remaining open to the east and west.
Additionally, a number of other seams, ranging from 5-10 metres, were encountered in the drilling program that targeted the southern limb of the fold in the synclinal basin. With five rigs now at Baruun Naran, QGX is concurrently drilling northern limb coal-bearing structures.
The company is now adapting the strategy of widening its drill-line spacing to 300 metres, due to observed continuity of the coal seams, and targeting holes up to about 200-metres vertical depth. Both previous Russian and current QGX drilling of the synclinal structure has shown at least 10 separate coal seams over about 1,000 metres of sequence. Coal-bearing horizons have been identified over at least a 1.5 by 10-km area of the basin with excellent extension potential.
The Permian basin hosting the Baruun Naran coal deposit is a northeast-southwest striking corridor extending westwards from the large Tavan Tolgoi basin, about 20 km away. Tavan Tolgoi, held by a Mongolian consortium, is estimated to host in excess of 5 billion tonnes of coal, with the majority being metallurgical grade which could be mined by open-pit methods.
Shares of QGX have recently rallied to well over the $4 level, setting new 52-week highs in its trading range. The company posts a $150-million market capitalization given its 36 million shares outstanding.
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