SouthGobi Energy Resources Receives Mining Licence For Tsaagan Tolgoi Coal Deposit
August 12 2009 - 9:14AM
Marketwired Canada
Alexander Molyneux, President of SouthGobi Energy Resources Ltd. (TSX
VENTURE:SGQ), announced today that Mongolian authorities have issued a mining
licence for the Tsaagan Tolgoi coal property that is held by the company's
Mongolian subsidiary, Southgobi sands LLC.
The Tsaagan Tolgoi property is in the South Gobi Region, approximately 415
kilometres east of SouthGobi's Ovoot Tolgoi coal mine.
An independent NI 43-101 resource estimate for Tsaagan Tolgoi was prepared in
February, 2008 by Norwest Corporation of Salt Lake City, USA. Norwest estimated
23.4 million tonnes of measured resources, 13.0 million tonnes of indicated
resources and 9.0 million tonnes of inferred resources. The coal is of volatile
bituminous B to C in rank based on ASTM D 388 standards and is suitable for use
as a thermal coal. The resources appear to be amenable to surface extraction
down to a planned depth of 150 metres. Details of the assumptions and parameters
used to calculate these coal resources and coal quality estimates are set out in
the Technical Report entitled "Coal Geology and Resources - Tsagaan Tolgoi
Property" dated March 25, 2008 and available at www.sedar.com.
The deposit has the potential to supply any future coal-fired power plant that
may be developed to produce electricity for Ivanhoe Mines' planned Oyu Tolgoi
copper-gold mining complex, which is approximately 115 kilometres northeast of
Tsaagan Tolgoi.
SouthGobi is required to submit a Technical and Economic Study to the government
agency in charge of mining within 60 days of the receipt of the mining licence.
The study is almost complete and SouthGobi intends to meet the submission
deadline. The General Environmental Impact Assessment (EIA) for the Tsaagan
Tolgoi Project was approved by Mongolia's Ministry of Nature and Environment in
June 2009. A more detailed EIA is underway and will be submitted following
approval of the Technical and Economic Study.
Mr. Molyneux said a decision to mine coal at Tsaagan Tolgoi will depend on the
receipt of additional required permits and would follow the results of more
detailed studies.
"Tsaagan Tolgoi is an important asset in SouthGobi's portfolio and the receipt
of a mining licence is an important step," Mr. Molyneux added. "It speaks to the
hard work and diligence of our employees, and the commitment the company has to
Mongolia."
About SouthGobi Energy Resources
SouthGobi Energy Resources is focused on exploration and development of its
Permian-age metallurgical and thermal coal deposits in Mongolia's South Gobi
Region and its Eocene-age metallurgical and thermal coal deposits in East
Kalimantan, Indonesia. The company's flagship coal mine, Ovoot Tolgoi, is
producing and selling coal to customers in China. The company plans to supply a
wide range of coal products and electricity to markets in Asia.
Ivanhoe Mines (TSX:IVN)(NYSE:IVN)(NASDAQ:IVN) is SouthGobi Energy Resources'
largest shareholder, currently owning, directly and indirectly, approximately
80% of the issued and outstanding shares.
Qualified Person
Disclosure of a scientific or technical nature in this release was prepared
under the supervision of Stephen Torr (P.Geo.), the Company's Resource Manager,
a "qualified person" for the purposes of National Instrument 43-101 of the
Canadian Administrators ("NI 43-101").
Forward-Looking Statements: This document includes forward-looking statements.
Forward-looking statements include, but are not limited to, the company's plan
to submit a Technical and Economic Study and detailed EIA for Tsaagan Tolgoi,
plans to supply coal products and electricity to markets in Asia, and other
statements that are not historical facts. When used in this document, the words
such as "could", "plan", "estimate", "expect", "intend", "may", "potential",
"should", and similar expressions are forward-looking statements. Although
SouthGobi Energy Resources believe that the expectations reflected in these
forward-looking statements are reasonable, such statements involve risks and
uncertainties and no assurance can be given that actual results will be
consistent with these forward-looking statements. Important factors that could
cause actual results to differ from these forward-looking statements are
disclosed under the heading "Risk Factors" in SouthGobi Energy's Management's
Discussion and Analysis of Financial Condition and Results of Operations for the
year end Dec. 31, 2008, which is available at www.sedar.com.
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