SouthGobi Resources Ltd. (HKG:1878) announces the new, independent estimates prepared by Minarco-MineConsult (MMC). Updated NI 43-101 compliant coal resources and reserves for the company's Ovoot Tolgoi surface and underground resources contain measured plus indicated coal resources of 302.3 million tonnes (approximately 14% increase), with an additional inferred coal resource of 86 million tonnes (approximately 11% decrease), proven and probable reserves increase by 65% to 175.7 million tonnes. The increased reserve base allows for an increased steady-state run-of-mine production rate of approximately 9 million tonnes per annum which is expected to be achieved by 2015.

Ovoot Tolgoi resources are found in two different resource areas. The resources identified have been determined to be suitable for surface mining to a maximum depth of 300 metres below surface and potential underground mining between a depth of 300 metres below surface to a maximum depth of 600 metres.

Independent estimates for coal resources have also been updated by MMC for the company's Soumber Deposit and an inaugural estimate of coal resources at the Zag Suuj Deposit has been completed. Estimate of updated NI 43-101 compliant coal resource for Soumber Deposit–measured plus indicated resources increase by 124% to 137.3 million tonnes and inferred resources increase by 26% to 83 million tonnes. Inaugural NI 43-101 compliant coal resource for Zag Suuj Deposit–measured plus indicated resources of 17 million tonnes and inferred resources of 66 million tonnes.

Source:chinesestock