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  • REDHILL announced April 3rd, 2006 that it acquired a 100% interest in two licenses covering the major part of the Chandgana Tal Coal Project.
  • The Chandgana Tal Coal Project is in the northeast part of Nyalga coal basin, approximately 290 kilometres east of Mongolia’s capital, Ulaanbaatar, reasonably close to good infrastructure – towns, roads & power lines.
  • The coal seams are Early Cretaceous in age and occur in an oval-shaped synclinal sub-basin, approximately 5 kilometres x 7 kilometres in size.
  • Results on core samples (411 total) collected by the Russians suggest that the Chandgana coal is a high volatile subbituminous A or B coal of good quality. The heating values range from 5,277 kcal/kg (9,499 BTU/pound) to 6,182 kcal/kg (11,129 BTU/pound) with an average volatile matter yield of 51.38%. The coal is desirably low in ash (average 11.67%), low in moisture (9.77% to 14.33%) and relatively low in sulphur (average 0.92%).
  • Chandgana Tal contains a substantial quantity of historically-defined shallow, thick, good quality sub-bituminous coal which REDHILL believes to be amenable to a large-scale, low cost bulk mining operation.

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