Detailed washability tests under a coal quality and test work plan supervised by Sedgman demonstrated the coal to be readily washable through a standard and common coal handling and processing plant.

Newera said coal quality analysis confirmed previous results that indicated the potential for a semi-anthracite, low-volatile, bituminous type coal that was low in moisture with a high calorific and ash values.

Despite the high ash, Sedgman concluded the washing process could be optimised to produce a yield in the region of 50% with a contained 30% ash.

The flagship project’s coal could be mined to produce a lower energy product without washing and, if used for power generation, would be considered a “clean coal”, with a low level of pollutants being released into the atmosphere due to the coal’s low-volatile nature.

Newera executive chairman Martin Blakeman said the company was confident on planning a future for the mine based on these positive results.

“The patient and very efficient work by Sedgman and ALS Laboratories has produced an outstanding result for Newera given the previously indicated coal quality parameters of the Shanagan coal project,” he said.

Blakeman said the results would allow Newera to consider a range of development, end user and marketing options when considering the future development of Shanagan.

“Those options could conceptually include bulk mining and direct shipment without processing; bulk mining and direct shipment to a boutique mine mouth power station and delivering clean power to Ulaanbaatar and the surrounding region; washing the coal through a suitable coal handling and preparation plant to produce a product stream for either on-shipment for power generation; or a range of other uses including briquetting,” he said.

Following two drilling programs the mine was estimated to have an exploration target of 64 to 111 million tons of coal. A recent third drilling program has not yet been included in this estimate.