Here comes the Viking

ACQUISITION of the Berkh Uul coal project is a step closer for Viking Ashanti after the board of unlisted Auminco gave it the go ahead to accept an off-market takeover offer by Viking.
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Sadie Davidson

The Berkh Uul bituminous coal project in Northern Mongolia is an advanced coal project that can be developed through to production in 2016.

An inferred coal resource of 38.3 megatonnes has been reported for the Berkh Uul deposit .

The resource model outlined multiple shallow coal seams with individual seams fluctuating from 0.6-4.5m thick over a strike length of 3km, extending to a maximum depth of 200m below surface.

The project is expected to have a low capital cost, low initial operating cost and no infrastructure needs.

The resource will likely be improved by further step-out drilling, providing the basis for a long life open cut mining operation.

It is likely to receive strong interest from off-takers due to its location close to the Russian border and with rail access within 40km to existing Mongolian and Russian markets for output from Berkh Uul.

The North Mongolian project is a step change for Viking from a West African gold exploration play. The gold project is still in Viking's pool, but Berkh Uul Coal Project provides a faster way to generate cash flows.

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