SouthGobi Energy reported an initial independent National Instrument 43-101 compliant resource estimate for its Mamahak coal project in East Kalimantan, Indonesia. The SW and E resource blocks on the Mamahak concession contains measured plus indicated coal resources of 12.2 million tonnes, with an additional inferred coal resource of 5.2 million tonnes. A recent bulk sample from the SW resource block within the MCM concession has confirmed high-volatile metallurgical coking coal amenable to surface mining. SouthGobi has a 85% working interest in the Mamahak Joint Venture and has provisions in the joint venture agreement to increase its working interest to 100%.
A Location Permit (ljen Lokasi) has been issued by the local Government, which allows the company to commence surface coal mining of the SW deposit on the MCM concession at the Mamahak area.
November 5, 2008
Independent laboratory analysis of a recent bulk sample confirmed high volatile, high-fluidity metallurgical coking coal on the property.
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