Nuurstei Coking Coal Project

In August 2017 the Company exercised its option, acquiring a further 45% interest in the Nuurstei Coking Coal Project taking its total interest to 90%.

The Nuurstei project is currently being evaluated as a near term mine development, producing a washed hard coking coal. Nuurstei is located approximately 10 km from Khuvsgul provincial capital of Moron which has recently been connected to the nearest rail head at Erdenet by a sealed road. Nuurstei is approximately 160 km east of the Ovoot project.

In October 2017 the Company received a mining license covering the Nuurstei resource area.

Previous drilling has identified modest JORC Coal Resources of 4.7 Mt of Indicated and 8.1 Mt of inferred. A 2018 drilling programme has been designed to look to both upgrade and extend the resource base in order to support a mine development based on supplying a 1 Mtpa wash plant on site.

Nuurstei Coal Resource

BENCH NAME Indicated  (Mt) Inferred  (Mt) Total
BOC-BOW* 0.41 0.5 0.91
BOW  – 50 m 1.18 1.5 2.68
50 m – 100 m 1.72 2.3 4.02
100 m – 150 m 1.1 2.1 3.2
150 m – 200 m 0.34 1.7 2.04
Total 4.75 8.1 12.85

Summary of Indicated and Inferred Coal Resources at 50 m Depth Increments

Work completed during 2014 and 2015 confirmed coal continuity along a 1.8 kilometre strike on a northwest-to-southeast orientation with multiple medium to thin seams coal steeply dipping to the south west. The area is faulted with a number of north-south faults crossing the deposit and exposing surface coal outcrops. In addition, a separate near surface coal deposit to the west of a major fault dips in a separate direction to the north and this will be further investigated in 2018.

2011 – 2015 Exploration drilling

Coal quality analysis results including washability and coking testwork was completed as part of the 2014 and 2015 exploration programmes. Analysis was conducted on core samples from these programmes and indicates a quality hard coking coal present at Nuurstei, with a high caking “G” index, good fluidity and low sulphur. The 2018 drilling programme will provide additional core samples for quality and washability testwork which will be fed into the Feasibility Study including wash plant design work.

Indicative Washed Coal Specification

Indicative Washed Coal Quality (Air Dried)
Moisture % 0.5
Ash % 9.2
Volatile Matter % 26
Total Sulphur % 0.7
Phosphorus % 0.09
Free Swelling Index (FSI) 8.5
Caking Index (“G”) 98
Gieseler Fluidity (ddm) 3755
Max Dilatation % 190
Sapozhnikov Index – X mm 16
Sapozhnikov Index – Y mm 29
Base/Acid ratio 0.14
Vitrinite  % 90
RoMax 1.35

Indicative Washed Coal Quality (air dried basis)

The Company has also entered into a contract to buy 100,000 tonnes of raw coal from a mine adjacent to the Nuurstei Mining License. The Company intends to mine this coal on behalf of the owner in order to provide commercial quantities of samples and confirm logistics paths and costs.

Nuurstei’s close proximity to existing infrastructure (town, road, rail and services) provides an excellent opportunity to assess the economics of a road based operation, prior to the completion of the Erdenet to Ovoot railway construction, given access to a 420 km paved road from Moron to Erdenet where coal loadout facilities and an existing rail head are located. The Company, subject to a positive feasibility study and funding availability is aiming to be in production Q1 2019.

Competent Persons Statement – Nuurstei Exploration Results

The information on this site that relates to Reporting of Exploration Results, is based on information compiled under the supervision of, and reviewed by, the Competent Person, Mr Parbury, who is a full time employee of McElroy Bryan Geological Services, is a Member of the Australasian Institute of Mining and Metallurgy and who has no conflict of interest with Aspire Mining Limited.

The reporting of exploration results for 13580X presented on this site has been carried out in accordance with the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’, The JORC Code 2012 Edition prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC). These results were reported to the ASX in an announcement dated 15 October 2014.

Mr Parbury has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Parbury consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.