2007 has seen Red Hill acquire and complete its phase one drill program on the Chandgana Khavtgai coal project giving it a reportable 678.4 million tonnes of high quality bituminous coal. The successful program moved Red Hill over the historical plateau of 1 Billion tonnes combined reportable coal from its three coal projects.
Red Hill Energy is also nearing completion of its transportation study on its 208.8 million tonne Ulaan Ovoo high quality Bituminous coal project. With the study showing a 20 year profitable mine life on the project and the recent acquisition of five mineral licenses including licenses that are contiguous and entirely surrounding Red Hill's 206.2 million tonne Ulaan Ovoo coal project Red Hill continues on it's expansion and path to production.
Red Hill Coal discoveries to date: All tonnage in millions
PROJECT |
MEASURED |
INDICATED |
MEASURE & INDICATED |
INFERRED |
|
Ulaan Ovoo (Northern Basin) |
174.5 |
34.3 |
208.8 million |
35.9 |
|
Chandgana Tal (Nyalga Basin) |
141.3 |
(none) |
141.3 million |
(none) |
|
Chandgana Khavtgai (Nyalga Basin) |
187.7 |
469.3 |
657 |
405.2 |
|
TOTAL * ALL FIGURES REPRESENT TONNES |
503.5 |
503.6 |
1007.1 |
441.1 million |
Red Hill’s coal quality is demonstrated as follows:
PROJECT |
ASH (%) |
SULFUR (%) |
BTU/LB |
KCAL/KG LB |
STRIP RATIO (AVG) |
SEAM THICKNESS (AVG) |
|
Ulaan Ovoo |
11.6% |
0.37% |
9,367 |
5,204 |
2.0:1 (1st - 140 million tonnes) |
53.9m |
|
Chandgana Tal |
12.49% |
0.68% |
7,628 |
4,238 |
0.53:1 |
40m |
|
Chandgana Khavtgai |
10.34% |
0.53% |
7,845 |
4,358 |
2.1:1 |
45.4m |