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EPIC: AKM
Market: ASX
52-week High/Low: A$0.03 / A$0.01
Sector: General Mining - Coal
Market Cap: A$13.31M
Aspire Mining Ltd

Aspire Mining Ltd

Aspire Mining Ltd (ASX:AKM) is an exploration and development company focused on discovering and developing world class premium coal deposits in Mongolia. Its Northern Railways subsidiary is developing the Erdenet to Ovoot rail project.

Aspire Mining Ltd

www.aspiremininglimited.com

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Big picture - Why invest in Aspire Mining Ltd


Aspire Mining Ltd Snapshot

Aspire Mining Limited is an ASX listed (ASX: AKM, Aspire or the Company) exploration and development company focused on discovering and developing world class premium coking (metallurgical) coal deposits in Mongolia, maximising shareholder returns over the long term, and contributing to the social and economic enrichment of local communities.

Aspire’s primary focus is on Mongolia, a resource rich country with a rapidly developing coal mining industry emerging as a key future supply source given Mongolia’s close geographical position to some of the largest coking coal consumers worldwide – China, Russia, Japan, and Korea.

The Company is the largest coal tenement holder in the vastly spanning Orkhon-Selenge Coal Basin in northern Mongolia. Aspire owns a 100% interest in the large scale, world class Ovoot Coking Coal Project (Ovoot), the second largest coking coal project by reserves in Mongolia, and a 100% interest in the Jilchigbulag and Myangan Coal Projects. Through its 50% ownership in the Ekhgoviin Chuluu Joint Venture (ECJV), Aspire also holds interests in two exploration coal projects, the Nuurstei Coking Coal Project (Nuurstei), and the Erdenebulag Coal Project (Erdenebulag).

Aspire’s flagship Ovoot project is host to 255 Mt JORC Coal Reserves and can sustain full scale production of up to 10 mtpa of saleable coking coal over a 21 year life of mine. Ovoot is ready to head into a definitive feasibility study having completed two pre-feasibility studies, received a mining licence, and approval by the Mineral Resource Authority of Mongolia for its Mongolian Feasibility Study. Ovoot’s development is dependent on the construction of the Erdenet – Ovoot railway.

The Company is also continuing to explore its other coal assets, such as Nuurstei, which may provide an opportunity for a small scale road based operation prior to the Erdenet – Ovoot railway being commissioned.

The Erdenet – Ovoot railway represents one section of an international rail link, part of Mongolia’s national rail policy, which extends its existing rail network to connect northern Mongolian with Russia’s Siberia. Northern Railways LLC (Northern Railways), a Mongolian infrastructure company backed by a consortium including Aspire, and subsidiaries of Fortune 500 listed China Railways Corporation, is currently progressing the development of the Erdenet – Ovoot section, which is anticipated for commissioning in 2019 dependant on the grant of a concession, licences, permits, approvals and financing.

 

 

OVOOT COKING COAL PROJECT

Aspire’s wholly owned Ovoot Project comprises one mining and three contiguous exploration licences which span across over 430 square kilometres.

The Ovoot Project area is located in north-western Mongolia and includes the JORC Compliant Coal Resource and Coal Reserve area, and the Hurimt and Zuun Del prospects. The majority of work conducted by Aspire to date has been largely focussed on the western section of the Ovoot Basin which hosts open pit and underground Coal Reserves. Exploration potential to find additional coal remains open to the east of the existing mining licence.

The Ovoot Project hosts 255Mt JORC 2012 Compliant Coal Reserves (188Mt Marketable). Please refer website for full JORC Resource & Reserve Statement and Competant Persons Statement.

Development of the Ovoot Coking Coal Project

Following the completion of two Pre-Feasibility Studies completed in 2012, the Company has adopted a plan to develop the Ovoot Project in line with the commissioning of the Erdenet to Ovoot Project Railway. The Ovoot Development Plan (ODP) relies on the use of contractors, and production of a high proportion of bypass coal which does not need to be washed and estimates a capital expenditure requirement of US$144 million including contingencies to commence mine production in 2019 (dependent on the commissioning of the Erdenet to Ovoot railway).

Ovoot will initially produce 5 Mtpa of saleable high quality coking coal, which will be loaded directly onto rail for delivery to markets including China, Russia, Eastern Europe, and north Asian countries. As demand increases for Ovoot Project coking coal, Aspire would look to increase production at the Ovoot Project up to 10 Mtpa.

Aspire was granted a Mining Licence in August 2012 and received approval for its Mongolian Feasibility Study by the Mineral Resource Authority of Mongolia (MRAM) in 2013. The Company is in the process of negotiating land use agreements.

Aspire’s focus is on receiving the outstanding regulatory approvals, gaining access to rail infrastructure, port facilities, and aims to commence a Bankable Feasibility Study once rail development has progressed.

Infrastructure Access

 

Aspire’s Ovoot project, will have direct rail access upon the completion of the Erdenet to Ovoot railway. The Erdenet to Ovoot railway is a part of Mongolia’s rail policy aimed at extending the existing rail network through northern Mongolia and up to the Russian border, which is planned to eventually connect with Russia’s rail network.

Northern Railways, a Mongolian registered rail infrastructure company is progressing the development of the Erdenet to Ovoot railway, and is expecting commissioning in 2019 dependant on the grant of approvals, permits, and financing.

A rail concession was granted to Northern Railways in August 2015 and the company is now progressing the completion of EPC contract negotiations, bankable Feasibility Study and funding discussions with financiers.

 

EKHHGOVIIN CHULUU JOINT VENTURE

The Ekhgoviin Chuluu Joint Venture (ECJV) is a 50/50 venture between Aspire Mining and Singapore listed commodities trader Noble Group (SGX: N21, Noble) who each own an equal 50% interest.  Aspire became a party to the ECJV in mid-2014 and have an option to buy out Noble’s interest which expires in March 2016.

The Nuurstei Project is the ECJV portfolio’s most advanced exploration asset. Nuurstei comprises two tenement areas spanning across approximately 27 square kilometres. It is located approximately 10 km from Khuvsgul province capital of Moron and 160 km east of the Ovoot project.

A successful exploration programme was completed at Nuurstei in 2014 which comprised 17 non-core rotary holes, one (1) PQ diamond core drill hole, and seven (7) holes from a 2011 exploration programme were reopened and geophysically logged.

Work completed during 2014 confirmed coal continuity along a 1.2 kilometre strike on a northwest-to-southeast orientation with coal dipping an average 50 degrees to the south west. The area is faulted with a number of north-south faults crossing the deposit and exposing surface coal outcrops. In addition, a separate near surface coal deposit to the west of a major fault dips in a separate direction to the north and this will be further investigated in 2015.

Coal quality analysis results including washability and coking testwork was completed as part of the 2014 exploration programme. Analysis was conducted on one core sample taken from PQ drillhole NUDH012. Results confirm a quality hard coking coal present at Nuurstei, with a high caking “G” index and low volatile matter. Additional work will be required to confirm these results are indicative of the entire project.

Nuurstei’s close proximity to existing infrastructure (town, road, rail and services) provides an excellent opportunity to assess the economics of a road based operation, prior to the completion of the Erdenet to Ovoot railway construction. Access to a paved road from Moron to Erdenet will be available in 2015 and land available to Aspire at Erdenet could be used as a coal stockpile and train load-out area.

 

Mr David Paull
Managing Director

Mr Paull has over 20 years experience in resource business development and industrial minerals marketing. Mr Paull was previously Executive General Manager Business Development and Marketing where he oversaw the sale of over half the world's annual tantalum concentrate requirements and two thirds of the world's lithium minerals supply. Over the last six years David has been working on private equity and seed capital opportunities in the biofuels, transport services and resource sectors. David holds a Bachelor of Commerce from the University of Western Australia and a Master of Business Administration with Distinction from Cornell University New York. He is a fellow of the Financial Services Institute of Australia.

Mr Paull currently serves as Director of  Red Island Resources Limited, a public unlisted company.

 

Mr David McSweeney
Non-Executive Chairman

Mr McSweeney is a lawyer by training and has over 20 years experience in the resources sector ranging from exploration to project management, project finance, commercial and legal structuring and corporate development.

A founder of Gindalbie Metals Ltd, David was the Managing Director from 1998 until December 2006. During this time at Gindalbie David oversaw the discovery and commissioning of two gold production centres and the repositioning of the company as an emerging Australian iron ore proucer with a +$300m market capitalisation.

Mr McSweeney is currently the Chairman of MSP Engineering Pty Ltd, and FeCon Ltd.

 

 

Mr Neil Lithgow
Non-Executive Director

Mr Lithgow has over 20 years experience in mineral exploration, mineral economics and mining feasibility studies, covering base metals, coal, iron ore and gold. Mr Lithgow has previously worked for Aquila Resources Limited and Eagle Mining Corporation NL.

Mr Lithgow is a founder an a Non-Executive Director of Bauxite Resources Limited and Red Island Resources Limited, a public unlisted company. Neil is a member of the Australian Institute of Mining and Metallurgy and the Financial Services Institute of Australia.

 

 

Mr Sado Demchigsuren Turbat
Non-Executive Director

Mr Turbat has over 12 years of experience in the resource sector in Mongolia. As one of the core authors of the 1997 Minerals Law of Mongolia and as an Honorary Member of Mongolian National Mining Association, Mr Turbat is a key resource person on Mongolian mining industry policy and regulative framework.

Mr Turbat is a founder of Mine Info LLC, one of the leading national companies in mining and a founder of the "Discover Mongolia" annual international mining forum. Currently Mr Turbat serves as Managing Director of Behre Dolbear Mongolia LLC.

 

 

Ms Hannah Badenach
Non-Executive Director

Ms Badenach holds a Bachelor of Laws (Hons) and a Bachelor of Arts from the University of Tasmania. She currently acts as Vice President of Asset Development & Operations at Noble Resources Limited, a subsidiary of the Noble Group (SGX: N21).

Ms Badenach has considerable experience in management and development within Mongolia. Her previous roles have included practising law for several years in Asia, including two years in Mongolia with Lynch & Mahoney. Ms Badenach was also previously Managing Director of QGX Mongol LLC from 2006, a coal explorer and developer prior to its takeover in 2008 by Mongolia Holdings Corporation.

 

 

Mr Phil Rundell
Company Secretary

Mr Rundell is a former Partner of a big 4 accounting firm and is now a sole practitioner Chartered Accountant specialising in providing company secretarial, compliance, accounting and reconstruction services.



Last updated 17th August 2015.

AUSTRALIA (Corporate Office)
Suite B3, 431-435 Roberts Road
Subiaco, WA 6008

PO Box 1918
Subiaco WA 6904

T: +61 8 9287 4555
F: +61 8 9388 1980

Ulaanbaatar Office (Mongolia)
Sukhbaatar District, 1st Khoroo, Chinggis Ave-8
Altai Tower, 3rd Floor, Room 302
T: +976 7011 6828

Moron Office (Mongolia)
Skytel Building, Khan Bank, 2nd Floor
T: +976 9990 1385


Last updated 17th August 2015.

ASPIRE MINING LIMITED (ASX:AKM)
ABN 46 122 417 243

Share Capital
Ordinary Shares
928,288,306

Options
188,912,500

Directors
Mr David McSweeney: Non-Executive Chairman
Mr David Paull: Managing Director
Mr Neil Lithgow: Non-Executive Director
Mr Sado Demchigsuren Turbat: Non-Executive Director
Ms Hannah Badenach: Non-Executive Director

Company Secretary
Mr Philip Rundell

Registered Office
Suite B3, 431-435 Roberts Road
SUBIACO WA 6008

T: +618 9287 4555
F: +618 9388 1980
E: [email protected]

Principal Place of Business
AUSTRALIA
Suite B3, 431-435 Roberts Road
SUBIACO WA 6008

MONGOLIA
Sukhbaatar District, 1st Khoroo
Chinggis Avenue-8
Altai Tower, 3rd Floor, Room 302
Ulaanbaatar 14253

Share Register
Security Transfer Registrars Pty Ltd
770 Canning Highway
APPLECROSS WA 6153

T: +618 9315 2333
F: +618 9315 2233
E: [email protected]
W: www.securitytransfer.com.au

Solicitors
Corrs Chambers Westgarth
Level 15, Woodside Plaza
240 St Georges Terrace
PERTH WA 6000

Steinepreis Paganin
Level 4, The Read Buildings
16 Milligan Street
PERTH WA 6000

Bankers
National Australia Bank
Level 1, 1238 Hay St
West Perth WA 6005

Auditors
AUSTRALIA
HLB Mann Judd
Level 2, 15 Rheola Street
West Perth WA 6005

MONGOLIA
PriceWaterHouseCoopers Audit LLC
Central Tower, 6th Floor, Suite 601
Sukhbaatar Square, SBD-8,
Ulaanbaatar 14200



Last updated 17th August 2015.

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