Aspire Mining Ltd (ASX:AKM) has made a key operational appointment as it aims to begin producing coking coal from its 90%-owned Nuurstei project in northern Mongolia within 18 months.
Neil Wilson, who has experience in Mongolian coal operations, has been appointed project manager.
The role will involve managing an upcoming drilling and sampling program, the mining and delivery of raw coal purchases, and completion of a feasibility study.
He will also be involved in future mine construction and operation.
READ: Aspire Mining attracts $16.5 million to advance coking coal project in Mongolia
Wilson has had a long international history in the mining industry with five years of experience in Mongolia.
This included three years as mining director for Macmahon Mongolia running the Tavan Tolgoi coal operations on behalf of the Mongolian Government.
David Paull, managing director, said: “The development of the Nuurstei Coking Coal Project is a key strategy for the company in 2018.
“The funding from the recently completed rights issue places the company in a good position for what promises to be a busy 2018.”
Drilling and support services contract
Aspire has signed a drilling and support services contract with Ferrostaal Mining Services.
Ferrostaal will provide a full suite of project development services to enable Aspire to quickly and efficiently complete the project feasibility study.
Access and water permits are being prepared with Ferrostaal mobilisation to occur immediately after.
This company is a Mongolian/German joint venture headed by Julien Lawrence, formerly chief operating officer for TerraCom Limited in Mongolia.
A reserve statement will be completed
Aspire will also appoint RPM Global to provide technical advisory services, including JORC 2012 compliance oversight for the drilling and sampling program.
It will also provide a resource model including 2018 drilling program results, will update resources and complete a reserve statement.
Nuurstei has an indicated resource of 4.75 million tonnes and an inferred resource of 8.1 million tonnes.
Raw coal purchase
Aspire has agreed to purchase 100,000 tonnes of raw coal from the Mongolian Government agency which owns and operates a mine adjacent to Nuurstei.
This mine is producing small quantities of raw coal for local thermal uses.
The purchase price has been set at a cost plus margin basis with mining being undertaken by a contractor under Aspire supervision.
Aspire will also ensure that 16,000 tonnes of thermal coal will be provided to the agency so as it can meet local sales commitments.
It is estimated that it will take six months to mine this raw coal.
Testing logistics and cost assumptions
This strategy has been adopted to test logistics and cost assumptions to be used in the Nuurstei feasibility study by transporting this coal along existing road and rail facilities for delivery to export markets in China.
The raw coal for mining occurs as extensions of Nuurstei coal seams.
It will also be used to provide washed coking coal simulations and commercial trial quantities for marketing purposes through toll washing in China.
Mining licence received
In October 2017 the company received a mining licence covering 860.91 hectares of the Nuurstei project and providing Aspire with a minimum 30 year tenure over the area.
Nuurstei is viewed as a low capital cost starter project which could assist with development of Aspire’s much larger Ovoot Coking Coal Project 160 kilometres to the west.
READ: Aspire Mining's David Paull talked railway to production at Proactive's CEO Sessions
Full realisation of the Ovoot project is dependent on construction of the Erdenet to Ovoot Railway which is being progressed by Aspire subsidiary Northern Railways LLC.
It is intended to use road-based infrastructure for Nuurstei until such time as the Erdenet to Ovoot section of the proposed Northern Rail Corridor is built.