The resources were all established within a depth of 140 metres at the new Har Toirom discovery, which is near the Unst Khudag deposit.

Combined measured and indicated resources account for 226Mt, or about 70%, of the total resources.

The maiden resource estimate also represents just 30% of Har Toirom data, with further upgrades to the resource model expected in early 2011.

Ten seams have been identified at Har Toirum, with one borehole intersecting a combined thickness of 47.9m.

Modelling is underway for the project’s namesake Unst Khudag deposit and Hunnu expects resources for this area to be released in the “coming weeks”.

Various contractors have drilled 209 holes for the thermal coal project with 105 completed from June to November.

The energy content of the Har Toirum coal identified so far averages 6784 kilocalories per kilogram on a dry ash-free basis, and an average 4404kcal/kg on an air-dried basis with ash of 14.3%.

Hunnu said a study on transporting the coal to the Chinese border was at an advanced stage.

“Options for acquiring a spur rail line at the Choir railway station area or building a short spur rail line with a loading facility are being studied,” the explorer said.

Hunnu is also continuing offtake negotiations and will finalise the amount of coal for trial shipments.

The company aims to construct a power plant onsite and is hunting for a suitable consultant to carry out a feasibility study for this aspect of the project.

Last month Hunnu had eight rigs at its Tsant Uul project, which is within 40km of the Tavan Tolgoi coking coal field in Umnugobi Province.

Hunnu shares are unchanged at $A1.28 this morning.