Headquartered in U laanbaatar, Mongolia, Sharyn Gol is involved in the extraction, processing and sale of coal in northern Mongolia, with 100% interest in the Sharyn Gol mine located 215 km north of Ulaanbaatar. Its coal is sold to utility markets for thermal and semi-coking purposes and is used by Erdenet and Darkhan as a main energy source. Sharyn Gol commissioned MCS to complete a technical report compliant with JORC standard reporting guidelines for the Sharyn Gol mine. For optimum results, MCS ensured all work related to the project was conducted in a meticulous manner, and field work, including supervision of downhole geophysics and drilling was carried out by Triton Coal according to work program procedures established by MCS.Before drilling commenced, the borehole patterns were designed and then all coal was logged and sleeved. If core coal sample recovery was less than 90%, the seam was re-drilled. Sample moisture was maintained by sleeving the coal in plastic and keeping samples at a low temperature. This avoided oxidation, the moisture content was not affected and the calorific value was representative.

The resource estimate modelling was conducted using Coal Measure, Micromine’s coal specific software solution.

Gridding of the thicknesses and surfaces of each seam was initially completed by undergoing a geostatistical analysis to generate a series of semivariograms which were used as the input weightings for the Kriging algorithm. These grids were then converted into a block model.

The JORC-compliant estimate found the Sharyn Gol coal project quadrupled the resource inventory. The report’s findings resulted in further developments of the mine which have enhanced the company’s competitiveness in the domestic and international coal markets.

MCS continues to provide consulting services to Sharyn Gol.

In January 2012 Sharyn Gol announced that the Mineral Authority of Mongolia (MRAM) approved a newly revised mineral reserve of 146.3 Mt at its flagship thermal coal project in northern Mongolia. The revised reserve more than doubles Sharyn Gol’s previous reserve estimate, and follows on from the 2010 drilling program, which established a 374 Mt, largely Measured and Indicated, JORC compliant resource.

Sharyn Gol JSC Chairman, Batkhuu Matmunkh said in the company’s announcement “The newly approved reserve is a significant landmark in the redevelopment of Sharyn Gol.”