Aspire Mining Ltd (ASX:AKM) has just embarked on its drilling program at the Nuuersti Coking Coal Project in Mongolia as it aims to upgrade the resource.
The company is cashed up following a capital raising in 2018.
This will assist with the financing of an exploration program and feasibility study as it aims to bring Nuuersti into production by 2019.
READ: Aspire Mining attracts $16.5 million to advance coking coal project in Mongolia
The company has mobilised rigs in preparation for the drilling of 58 holes.
Conversion of inferred resource to indicated category
The immediate aim is to convert a proportion of the JORC inferred resource inventory into and indicated resource through additional sampling.
As the company approaches the feasibility stage, it is drawing closer to production.
David Paull, managing director, said: “The market for coking coal remains robust with historically healthy pricing of hard coking coals of the quality that we expect Nuurstei can produce.”
Testing logistics and cost assumptions
Aspire will also mine the 100,000 tonnes of raw coal from the deposit adjacent to the Nuurstei Project mining licence.
This will provide the company with the information required to test logistics and cost assumptions that will be used in the Nuurstei feasibility study.
Transport of the raw coal is along the existing road and rail facilities for delivery to export markets in China and potential seaborne markets via the Russian rail and port system.
Coal seams are extensions to Nuurstei
The coal seams being mined in the adjacent area are extensions of the coal seams in the Nuurstei Project.
They will also be used to provide washed coking coal simulations and commercial trial quantities for marketing purposes through toll washing in China.
The Nuurstei Project development is subject to the outcomes of the current infill drilling programme, feasibility study and wash plant funding.
However, management noted that preliminary internal cost assessments which are the subject of confirmation in the feasibility study point to healthy margins at current pricing.