“booroljuutiin tal”(tsaidam nuur) thermal coal project ... · tsetsens mining and energy llc...

“Booroljuutiin Tal”(Tsaidam Nuur) Thermal Coal Project-Exploration results & Future Prospects-

Tsetsens Mining and Energy LLC

Address:Bodi Tower, 10th floorTs.Jigjidjav Street 3Ulaanbaatar 15160Mongolia

•“Tsetsens Mining and Energy” LLC (TME) is a 100% Mongolian Company and actively engaged in the fields of geological exploration, mining and energy.

• In 2011, Shareholders and Founders of Tsetsens Mining and Energy LLC restructured the company and all separate projects were merged to TME, which owned mineral licenses of Booroljuutiin Tal coal deposit.

• Booroljuutiin Tal (Tsaidam Nuur) is a large scale high quality thermal coal (lignite) deposit and is located in favourable infrastructure condition in Central Mongolia.

Booroljuutiin Tal Coal ProjectIntroduction

Booroljuutiin Tal Coal ProjectProject Location

•The project is located in the Bayan Soum of the Central (Tuv) Province of Mongolia.

•It is 117 km to the southeast of Ulaanbaatar (UB). • Distances from: - public paved road: 27 km,

- rail network: 28 km,- electricity grid (35Kv): 3 km,- industrial water source: 0-3 km (underground water).

Booroljuutiin Tal Coal ProjectProject Tenements

Tsaidam Nuur is the previous name of Booroljuutiin Tal Coal project.

•The project is covered by exploration and mining licenses of more than 10,000 hectares

•The project area lies on the north-eastern edge of the Nilga Basin.

•It reflects Jurassic–Cretaceous intracontinental rift evolution which began in the late Jurassic and continued through to the mid Cretaceous.

•This was the period of coal accumulation, forming in rift valley depressions from the ongoing extensional phase.

Booroljuutiin Tal Coal ProjectGeological Background

• The deposit consists of 3 coal units:

o Top Unit covers the least area with seven pliesmerging to create five seams. The cumulativethickness ranges from 5 to 41 metres.

o Middle Unit contains the thickest section of coaland is made up of six plies that merge into sevenseams, with a cumulative thickness up to 101metres.

o Lower Unit covers the largest area and has 9seams that range in cumulative thickness from 0.8to 50 metres.

• Each unit has a number of seams that split andmerge.

• The coal seams in each unit appear betterdeveloped and thicker towards the centre of thesynform and are thinner and develop more splitstowards the edges of the basin.

Booroljuutiin Tal Coal ProjectCoal seams

•To define the amount of provenclassified resources, Tsetsens Miningand Energy carried out a systematicdetailed exploration program including:

• geological mapping• topographic mapping• geophysical and borehole

surveys• Drilling• palaeontology/stratigraphy

studies• geotechnical tests• hydrogeological studies• satellite image interpretation• geological logging and

sampling, QAQC•etc.

Booroljuutiin Tal Coal ProjectExploration program

•To identify the resources according tothe international standard, TsetsensMining and Energy conducted drillingprogram until end of 2010, whichconsisted of 36,000 metric drilling.

•Final 25 boreholes (6000m) weredrilled in summer 2011 in order todefine the exact mine mouth and alsofor technological tests of downstreamindustries (not shown on the map left).

•Coal samples for technological testswere sent to German institutes/laboratories.

2,500 m

LEGEND

● Historical Drill Holes

● ● Drill Holes by Tsetsens Mining and Energy

Tenement boundary

N

Booroljuutiin Tal Coal ProjectExploration program

Coal mining project Booroljuutiin Tal Baganuur Shivee ovoo Shariin gol Aduun-

chuluun

Location/Distance from UB (km) 117 130 260 215 600

Reserve(billion tons) n/a* 0.36 0.6 0.37 0.4

Calorific value (kcal/kg; ADB) 3,500-6,000 3,200-3,500 2,700-3,100 5,000 2,800

Market capitalization (million USD) n/a 284 257 80 25

Booroljuutiin Tal Coal ProjectComparison with other coal mines

• The comparison of Booroljuutiin Tal coal deposit with other selected coal mining deposits of companies listed on the Mongolian stock exchange shows that Booroljuutiin Tal coal project has by far the largest deposit and one with highest coal quality. •Therefore, it suggests that the market value of Booroljuutiin Tal project can reach several-fold of market capitalization of the other coal mines.

Source: Mongolian Stock Exchange, Frontier securities, companies’ websites, 2011.* JORC resource estimation by Micromine.

• June, 2011: JORC Standard resource estimation iscompleted and the technical report was prepared byMicromine Consulting Services.

• Baseline Environmental study is complete andsubmitted to the “Ministry of Nature, Environment andTourism”.

•“Report on Detailed Environmental Study and SocialImpact” has started (field traverses & observations etc)in July,2012 and reporting is in progress.

Preparation for Mining Start in Q2, 2012

Booroljuutiin Tal Coal ProjectWork schedule and status of 2011

•Hydro-geological drilling program (3720m) and(geophysical) survey for both of industrial anddrinking water is completed in October, 2011.

•Resource estimation report according toMongolian law and regulations is in progress.

•Mine Feasibility study is in progress and expectedto be finalised by the end of Q1, 2012

Preparation for Mining Start in Q2, 2012


•Prefeasibility study of paved road (±27km) iscomplete and accepted by technical committee ofMinistry of RCUD. The Detailed Plan is in progress.

•Prefeasibility study on railway line to BT iscomplete and submitted to the Railway Authority ofMongolia & Ministry of RCUD.

•Permission/contracting for a transitional freightdepot at Bagakhangai Railway station is issuedand required railroad maintenance and repair workis accomplished.

Infrastructure


Mining camp complex•Construction of Mining Camp Complex is started in August, 2011 & expected to becompleted by Q2, 2012.•All the studies (environmental etc.) are accomplished and permits are assured.


•Prefeasibility Study of a 600MW coal firedpower plant (PP) is complete and the permitfrom the Technical Committee of Ministry ofMinerals and Energy is issued.

Works on further prospects (downstream industries)




•Selection of the partner(internationally recognized) forthe Bankable Feasibility Studyof PP is pending

•FS-result: A (600 MW) Mine Mouth Power Plantat “Booroljuutiin Tal” will be able to operateeconomically and reliably in that region andimprove the reliability and operation of thesystem.

•Preliminary study on coal characteristics was carried out by“Institute für Energieverfahrenstechnik undChemieingenieurwesen” of Freiberg Mining Academy/Germanyand further requiered studies/ industrial tests are in planning.

Results: gasifiable, however further detailed test insemi-industrial scale is recommended.

•Preliminary briquetting tests was done by ZEMAGGmbH/Germany.

Results: Coal from 46m below the surface can bebriquetted.

•Visits, meetings/ discussions about the Feasibility ofdownstream industries based on coal are continued...



• Booroljuutiin Tal is a large scale thermal coal deposit, and offers a number of development opportunities besides selling unprocessed coal.

• Following prospects and related studies are planned:-Large scale power plant near the mine to supply electricity to Ulaanbaatar and other regions in Mongolia,-The development of downstream industries such as coal liquefaction factory to produce and supply briquettes, semi-coke, liquid fuel and petrochemical products for Mongolian and overseas market.

• Capital fund raising through IPO on international stock exchanges.

Booroljuutiin Tal Coal ProjectFuture prospects

• „Booroljuutiin Tal“ thermal caol deposit/mine is 117 km to the southeast of the Mongolian capital, -a favorable location & infrastructure condition-.

• The project area is covered by tenements, which measure more than 10,000 Ha and owned by „Tsetsens Mining and Energy“ (TME) LLC.

• A systematic exploration program was carried out in last few years and the JORC standard resource estimation report is prepared by Micromine Pty.

• The Deposit resource was estimated according to the JORC standard and the average calorific value is above 4500 Kcal/kg (ADB).

• Mining condition (such as strip ratio, hydrogeology etc.) is suitable for a sustainable development.

Booroljuutiin Tal Coal ProjectConclusion

• For a sustainable development, TME conducted a number of studies, researches & construction work on Mining, Environment, Infrastructure, and the mining start is planned in Q2,2012.

• Booroljuutiin Tal/ Tsaidam Nuur thermal coal deposit:– AN IMPORTANT SOURCE FOR MONGOLIAN ENERGY DEMAND IN THE FUTURE -

• The Project offers a number of development opportunities besides selling unprocessed coal.

• TME welcomes any cooperation proposal, in particular in developing sustainable downstream industries in Mongolia based on our deposit.

Booroljuutiin Tal Coal ProjectConclusion

Thank you for your attention!

Address: Bodi Tower, 10th floor

Ts.Jigjidjav Street 3Ulaanbaatar 15160

Mongolia

Email: [email protected]

“booroljuutiin tal”(tsaidam nuur) thermal coal project ... · tsetsens mining and energy llc...

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