Business
Erdene Intersects 49 Metre Coal Seam near Rail to China
Erdene Intersects 49 Metre Coal Seam near Rail to China.
About this update from Erdene Resource Development Corporation
[{"type":"text","content":"\n\n\n\n\nErdene Begins Trading on the TSX\n\nHALIFAX, Dec. 14 /CNW/ - Erdene Gold Inc. (TSX:ERD) today announced that\nit has intersected a 49 metre thick coal seam at the Company's Galshar coal\nproject located in southeastern Mongolia, 65 kilometres east of a short-line\nrailway with direct access to the Trans-Mongolian Railway into China. Erdene\nhas been carrying out a comprehensive evaluation of coal opportunities in\nMongolia utilizing its proprietary mineral occurrence and geographic\ninformation system (G.I.S.) databases.\n\"We are excited by the early results and look forward to continuing to\ndefine the resource potential at Galshar and expanding our energy base,\" said\nPeter Akerley, President and CEO. \"During the past year our company has been\nevaluating opportunities in Mongolia that are anticipated to benefit from the\nsurging power demands of China, including uranium and coal resources. China's\nshortage of bulk mineable, open pit coal deposits providing safe, low-cost\nthermal coal continues to fuel interest in Mongolian coal opportunities, where\nlocation relative to rail is a key economic consideration.\"\nErdene's initial drilling of the Galshar coal project intersected a 49\nmetre coal seam in the central part of an area where previous drilling\nintersected coal seams over a three kilometer strike length that is open to\nthe northeast. Erdene's property covers most of this area and surrounds an\nopen pit coal mine which supplies coal to local towns. The initial Erdene hole\n(CDD-01) was collared approximately 300 metres northwest of the existing mine.\nHole CDD-01 intersected coal mixed with shale and clay beginning at 25\nmetres with continuous coal from 54 metres through 103 metres. The vertical\nhole was terminated at 107 metres in mixed coal and clay-rich sediments.\nVisual determinations suggest the quality of the coal varies from black, low\nto medium luster coal, to massive brown coal, over intervals ranging from 1\nto 14 metres. Historical testing, as well as results from recent Erdene grab\nsamples taken from the operating mine, indicate an average heating value of\n5900 kcal/kg (10,600 BTU/lb). The coal seam is hosted in a northeast trending\nbasin open to the northeast and bounded to the southwest by a fault which is\ninterpreted to have shifted the coal seam to a depth greater than 100 metres....