The Unst Khudag project currently holds 324 million tonnes of resources within a depth of 140 metres and an updated resource statement is being calculated.

Modelling has mainly centred on the recently discovered Har Toirom deposit, which holds 226Mt of measured and indicated resources.

A total of 260 drillholes have been completed covering 22,655m, while the energy quality has been rated at 6784 kilocalories per kilogram on a dry ash-free basis.

The project is about 180 kilometres from the Mongolian railway grid and Hunnu plans to truck coal in the initial phases of the open cut mine’s development, using cash flow to help fund further expansion.

Hunnu shares are down half a cent to $1.335 this morning.