The explorer said that after logging all data from the first phase of drilling, the tenement in Ovorhangay province showed “great promise” in a series of shallow, steeply dipping coal seams.
Draig managing director Mark Earley said deposits identified so far were less than 175m deep.
“All the coal we intercepted was relatively shallow and definitely at open pit minable levels,” he said.
“Our aim is to complement these results with the drilling to be undertaken in our phase 2 program, which will include our South Gobi licences.”
Best cumulative seam thicknesses at Teeg have been reported as 86.28m, 66.75m, 37.80m and 36.12m.
Teeg spans 22sq.km in the Ongi River coal basin and is situated immediately south of the 50-year-old Bayanteeg open cut mine, which has produced five million tonnes of coal to date.
The project is expected to announce a maiden JORC statement in June.