Material Change Report/Technical Report
Table of Contents

 
 
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
From: October 13, 2005
IVANHOE MINES LTD.
 
(Translation of Registrant’s Name into English)
Suite 654 — 999 CANADA PLACE, VANCOUVER, BRITISH COLUMBIA V6C 3E1
 
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
     Form 20-F- o      Form 40-F- þ
(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
     Yes: o     No: þ
(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                                        .)
Enclosed:
Amended Material Change Report
Technical Report
 
 

 


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SIGNATURES


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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
             
    IVANHOE MINES LTD.    
 
           
Date: October 13, 2005
  By:   /s/ Beverly A. Bartlett
 
BEVERLY A. BARTLETT
   
 
      Corporate Secretary    

 


Table of Contents

Form 51-102F3
Material Change Report
(Amended and Restated)
1.   NAME AND ADDRESS OF COMPANY
 
    Ivanhoe Mines Ltd. (the “Company”)
World Trade Centre
Suite 654 — 999 Canada Place
Vancouver, British Columbia
V6C 3E1
 
2.   DATE OF MATERIAL CHANGE
 
    September 16, 2005
 
3.   NEWS RELEASE
 
    The news release was issued on September 16, 2005 and disseminated through the facilities of recognized newswire services. A subsequent news release was issued on October 13, 2005 and disseminated through the facilities of recognized newswire services.
 
4.   SUMMARY OF MATERIAL CHANGE
 
    The Company has received an initial resource estimate for its Nariin Sukhait coal project in southern Mongolia. Based on the estimate, the project contains measured and indicated coal resources of approximately 116 million tonnes, with an additional inferred coal resource of approximately 42 million tonnes. The independent estimates were prepared by Norwest Corporation, of Salt Lake City, USA (“Norwest”) under the supervision of Mr. Steven B. Kerr, Senior Geologist. Mr. Kerr is a Qualified Person as defined by National Instrument 43-101.
 
    Subsequent to the initial filing of this Form 51-102F3 Material Change Report, Norwest advised the Company that, based on a re-calculation of data made during the preparation of a Form 43-101F1 Technical Report, the resource estimate for the Nariin Sukhait coal project announced on September 16, 2005 significantly understated overall resource tonnages. Accordingly, this Form 51-102F3 Material Change Report has been amended and restated to reflect Norwest’s increased estimates.
 
5.   FULL DESCRIPTION OF MATERIAL CHANGE
 
    The Company has received an initial resource estimate for its Nariin Sukhait coal project in southern Mongolia. Based on the estimate, the project contains measured and indicated coal resources of approximately 116 million tonnes, with an additional inferred coal resource of approximately 42 million tonnes. These resources, which were discovered and delineated in only seven months of drilling this year, are considered to be of

 


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    immediate interest as surface open-pit deposits that are amenable to near-term production for potential buyers in Chinese markets.
 
    Initial coal-quality testing ranks the Nariin Sukhait coal as high-volatile bituminous under American Society for Testing and Materials (“ASTM”) standards. Drill core samples are undergoing complete thermal and metallurgical testing by SGS Minerals Services in Denver, Colorado, USA.
 
    The independent estimates were prepared by Norwest Corporation, of Salt Lake City, USA. The Nariin Sukhait resource estimates were prepared in accordance with Canadian Institute of Mining Standards and the requirements set out in National Instrument 43-101, and were based on drilling completed prior to August 9, 2005.
 
    Subsequent to the initial filing of this Form 51-102F3 Material Change Report, Norwest advised the Company that, based on a re-calculation of data made during the preparation of a Form 43-101F1 Technical Report, the resource estimate for the Nariin Sukhait coal project announced on September 16, 2005 significantly understated overall resource tonnages. Accordingly, this Form 51-102F3 Material Change Report has been amended and restated to reflect Norwest’s increased estimates.
 
    Table 1 below summarizes the estimated resources in respect of the Nariin Sukhait coal project. Resources that are not reserves do not have demonstrated economic value.
Table 1: Nariin Sukhait Property
In-Place Coal Resources Summary (‘000 Tonnes)
As of August 9, 2005
                                 
          In-Place Resources  
    ASTM   (Tonnes)  
Area   Group   Measured     Indicated     Inferred  
South Field
        9,771,000       8,704,000       9,870,000  
East Field
  High-Volatile Bituminous     20,007,000       10,862,000       5,086,000  
West Field
        33,277,000       33,545,000       26,806,000  
Total
      116,166,000       41,762,000  
    In its initial resource calculation, Norwest had developed its geologic model using a topographic surface built from drill-hole collar elevation data. The topographic surface

 


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    used in the initial resource calculation was built from approximately 150 points of observation. Because of the limited topographic data available at the time of initial resource estimates, Norwest had employed a conservative approach. The new data, provided by a detailed land-traverse survey, now includes several thousand points of observation for constructing the topographic surface in the geologic model. Changes to the topographic surface has vertically repositioned many of the drill hole intercepts in the geologic model. While changes in horizontal control of the drill holes were minor, elevation control of the drill holes and the surrounding landscape changed significantly by as much as 40m which in many areas of the fields significantly increased the base limit depth employed for the in-place resource estimates.
 
    In addition to modifying the geologic model, the detailed survey corrected a survey error in the northern boundary of the exploration licenses. This increased the size of both the South and West Field resource areas.
 
    The Nariin Sukhait coal project is located approximately 40 kilometres north of the Mongolia-China border and the shipping terminus for a newly constructed, 450-kilometre Chinese rail line that is expected to be operational into the border area by the end of this year. The project is adjacent to, and surrounds, the MAK Nariin Sukhait Mine, operated by the MAK-Qin Hua Mongolian/Chinese joint venture. The MAK Mine, which has been supplying high-rank, low-ash, low-sulphur coal to Chinese consumers since 2003, has a reported production capacity of two million tonnes per year of thermal and blend-coking coal from two operating open-pits.
 
    The Nariin Sukhait coal field consists of very thick multiple seams, with individual seam thicknesses up to 60 metres. The Company has been using a multi-faceted approach in its exploration program, employing field mapping, surface-resistivity geophysics, trenching and drilling to identify coal resources. The primary goal of the program was to delineate an initial coal resource of between 50 and 100 million tonnes, sufficient to commence a commercial mine operation with annual coal production of between two and five million tonnes for export to China.
 
    To date, the Company has spent approximately US$4.5 million on exploration at Nariin Sukhait, representing 6 cents (US) per tonne of measured and indicated resources discovered to date.
 
    The Company’s initial exploration was focused on the South, East and West Fields, which are adjacent to the MAK mining lease. The program subsequently has expanded to several other areas of interest within the 4,155-square-kilometre exploration tenements that the Company controls surrounding the MAK Nariin Sukhait Mine. As of August 9, 2005, the Company had completed 245 drill holes on the Nariin Sukhait property. A total of 146 holes had been completed within the South, East, and West Fields. Norwest expects that approximately 90 more holes will be drilled before the completion of this season’s drill program at the end of October, 2005. Norwest then will update the current resource estimates for the South, East, and West Fields.

 


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The South and East Fields are directly adjacent to the MAK Mine’s East Pit, currently being mined for No. 5 Seam coal by the MAK operation. The South and East Fields are divided by a northwest trending fault that extends along the east side of the East Pit.
South Field
Drilling in the South Field has focused on delineating the No. 5 Seam as it projects down-dip and along strike from the East Pit. Drilling has identified approximately 18.5 million tonnes of measured and indicated resources in the South Field. Thirty drill holes define the No. 5 Seam, with an average seam thickness of 59.4 metres, dipping at 45° to the south.
Table 2: South Field
In-Place Coal Resources Summary (‘000 Tonnes)
As Of August 9, 2005
                                 
            In-Place Resources  
          (’000 Tonnes)  
Seam     ASTM Group     Measured     Indicated     Inferred  
  5    
High-Volatile Bituminous
    9,771,000       8,704,000       9,870,000  
Total     18,475,000       9,870,000  
Drilling is continuing in the South Field to further define No. 5 Seam resources. Exploration also is being carried out to further investigate the resource potential of the Nos. 8, 9 and 10 Seams that sub-crop to the south of the No. 5 Seam.
East Field
The East Field is located on the down-thrown side of the northwest-trending fault that separates it from the South Field. While drilling has not intersected the No. 5 Seam coal in the East Field, significant coal resources have been identified in the overlying Nos. 8, 9 and 10 seams. The upper seams are developed as multiple bench sequences that, combined, carry an average coal thickness of 18 metres. Beds dip from 45° to 60° toward the southeast for a strike length of 1.8 kilometres. Drilling has identified 30.8 million tonnes of coal in the measured plus indicated resource categories.

 


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Table 3: East Field
In-Place Coal Resources Summary (‘000 Tonnes)
As Of August 9, 2005
                                 
            In-Place Resources  
            (Tonnes)  
Seam   ASTM Group   Measured     Indicated     Inferred  
8
        1,578,000       1,251,000       604,000  
9
  High-Volatile Bituminous     10,450,000       6,160,000       1,777,000  
10
        7,979,000       3,451,000       2,705,000  
Total
    30,869,000       5,086,000  
    West Field
 
    The West Field is located 6.5 kilometres west of the South Field, adjacent to the MAK mining lease. The field is approximately 1.6 kilometres southwest of the MAK West Pit. Drilling has targeted the Nos. 5, 7, 8, 9, 10 and 11 seams along the limbs of a southwest-plunging anticline. A total of 71 drill holes have defined a measured plus indicated resource of 66.8 million tonnes in the West Field.
 
    Along the south limb of the anticline, drilling has intersected seams Nos. 5 through 10 in strata dipping from 45° to 60° toward the southeast. Strata along the north limb have been offset and rotated by reverse faulting. Drilling has intersected seams Nos. 7 through 11 dipping south-southwest at approximately 35°. The thickness of the No. 5 Seam averages 59.3 metres along the south limb. The upper seams for the south limb have a combined average thickness of 7.3 metres. The upper seams on the north limb have a combined thickness averaging 5.4 metres.

 


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Table 4: West Field
In-Place Coal Resources Summary (‘000 Tonnes)
As Of August 9, 2005
                                 
          In-Place Resources  
    ASTM     (Tonnes)  
Seam   Group     Measured     Indicated     Inferred  
5
        7,667,000       7,492,000       1,797,000  
8
            2,113,000       2,634,000       2,263,000  
9
  High-Volatile Bituminous     11,580,000       12,633,000       8,739,000  
10
            6,788,000       8,057,000       8,151,000  
11
            5,129,000       2,729,000       5,857,000  
Total        66,822,000       26,806,000  
Coal Quality
At this time, coal quality testing has been completed for approximately 25% of the core samples. Initial coal quality testing results of the coal seams in all three fields ranks the Nariin Sukhait coals as high-volatile bituminous under ASTM standards. Tests indicate that much of the No. 5 Seam is high-rank, low-ash, low-sulphur coal. Based on initial tests, typical characteristics for the No. 5 Seam average 9% moisture, 11.5% ash, 1.1% sulphur and a caloric value of approximately 6,400 Kcal/kg. Initial testing has shown more variability in the upper seams. Typical combined characteristics for the upper seams average 9.5% moisture, 15.2% ash, 0.7% sulphur and approximately 6,050 Kcal/kg. Reverse circulation coal samples are being tested by Mining Institute in Ulaanbaatar. Core samples are undergoing complete thermal and metallurgical testing by SGS Minerals Services in Denver, Colorado, USA.
New Resource Updates and Pre-feasibility Study
Extensive field mapping has identified numerous intermittent exposures of coal outcroppings that occur for more than 95 kilometres along the north margin of the sedimentary basin that contains the Nariin Sukhait deposit. Norwest also expects to be providing resource estimates on four additional areas at Nariin Sukhait that have shown encouraging initial results. To date, the Company has been engaged in exploration on 17 individual areas within the Nariin Sukhait Basin.

 


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    The Company plans to bring the Nariin Sukhait resources into a pre-feasibility-level study within the next six months and is currently involved in preliminary marketing discussions with potential coal buyers. Successful negotiations could see initial production from the Company’s properties in the second half of 2006 although there can be no assurance that this timetable will be met.
 
    Qualified Person
 
    Mr. Steven B. Kerr, Senior Geologist with Norwest and a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the information contained in this Material Change Report.
 
    Norwest has been commissioned by the Company to design, implement and manage the exploration program at Nariin Sukhait. Throughout the exploration program, Norwest has provided on-site management and technical assistance. Norwest will use the information gained from this program to prepare a pre-feasibility study for the development of a surface mining operation at Nariin Sukhait. Environmental baseline studies and geologic modelling are in progress.
 
6.   RELIANCE ON SUBSECTION 7.1(2) OR (3) OF NATIONAL INSTRUMENT 51-102
 
    Not applicable.
 
7.   OMITTED INFORMATION
 
    No confidential information has been omitted from this material change report.
 
8.   EXECUTIVE OFFICER
 
    The name and business number of the executive officer of the Company who is knowledgeable of the material change and this report is:
 
    Beverly A. Bartlett
Ivanhoe Mines Ltd.
Suite 654 — 999 Canada Place
Vancouver, British Columbia
V6C 3E1
 
    Telephone: (604) 688-5755

 


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9.   DATE OF REPORT
 
    DATED at Vancouver, British Columbia the 21st day of September, 2005 and amended and restated this l day of October, 2005.
 
    IVANHOE MINES LTD.
           
 
  Per:      
 
    Beverly A. Bartlett    
 
    Corporate Secretary    
 
         

 


Table of Contents

     
 
  Technical Report
 
   
 
  Nariin Sukhait Property
 
   
 
  Omnogovi Aimag, Mongolia
 
   
 
  Submitted to:
 
  Ivanhoe Mines, Ltd.
 
   
 
  October 13, 2005
 
   
 
  Norwest Corporation
 
  136 East South Temple 12th Floor
 
  Salt Lake City, Utah 84111
 
  Tel: (801) 539-0044
 
  Fax: (801) 539-0055
 
  Email slc@norwestcorp.com
 
  www.norwestcorp.com
 
 
 
 
 
  (NORWEST LOGO)

 


Table of Contents

1 TITLE PAGE
     
 
  Technical Report
 
   
 
  Nariin Sukhait Property
 
   
 
  Omnogovi Aimag, Mongolia
 
   
 
  Submitted to:
 
  Ivanhoe Mines, Ltd.
 
   
 
  October 11, 2005
 
   
 
  Norwest Corporation
 
  136 East South Temple 12th Floor
 
  Salt Lake City, Utah 84111
 
  Tel: (801) 539-0044
 
  Fax: (801) 539-0055
 
  Email slc@norwestcorp.com
 
  www.norwestcorp.com
         
 
  Authors:   Steven B. Kerr, CPG
 
      Richard D. Tifft III, PG
 
      Patrick P. Riley, CPG
     
 
  (NORWEST LOGO)
     
 
  IMMI. 04-3117
 
  Nariin Sukhait
 
  Technical Report
 
  1-1

 


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2 TABLE OF CONTENTS
         
1
  TITLE PAGE   1-1
2
  TABLE OF CONTENTS   2-1
3
  SUMMARY   3-1
4
  INTRODUCTION AND TERMS OF REFERENCE   4-1
5
  DISCLAIMER   5-1
6
  PROPERTY DESCRIPTION AND LOCATION   6-1
7
  ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY   7-1
8
  HISTORY   8-1
 
  8.1 Nariin Sukhait Mine   8-1
9
  GEOLOGICAL SETTING   9-1
 
  9.1 Regional Setting   9-1
 
  9.2 Coal Occurrences   9-2
 
  9.3 Property Geology   9-3
10
  DEPOSIT TYPES   10-1
11
  MINERALIZATION   11-1
12
  EXPLORATION   12-1
13
  DRILLING   13-1
14
  SAMPLING METHOD AND APPROACH   14-1
15
  SAMPLE PREPARATION, ANALYSES AND SECURITY   15-1
16
  DATA VERIFICATION   16-1
17
  ADJACENT PROPERTIES   17-1
18
  MINERAL PROCESSING AND METALLURGICAL TESTING   18-1
 
  18.1 Raw Coal Quality   18-1
 
  18.2 Optimized Qualities   18-8
 
  18.3 Washability and Metallurgical Testing   18-8
19
  MINERAL RESOURCE ESTIMATES   19-1
 
  19.1 Approach   19-1
 
  19.2 Geologic Modeling Parameters   19-1
 
  19.3 Coal Resource Estimation   19-1
 
  19.4 Quantification Parameters   19-3
MINIMUM SEAM THICKNESS: 0.60M   19-3
WEATHERED ZONE EXCLUSION: 5.0M (TOPOGRAPHY MINUS 5 METERS)   19-3
 
  19.5 South Field Resources   19-3
 
  19.6 East Field Resources   19-4
 
  19.7 West Field Resources   19-4
20
  OTHER RELEVANT DATA AND INFORMATION   20-1
21
  INTERPRETATION AND CONCLUSIONS   21-1
22
  RECOMMENDATIONS   22-1
     
 
  IMMI. 04-3117
 
  Nariin Sukhait
 
  Technical Report
 
  2-1

 


Table of Contents

         
23
  REFERENCES   23-1
24
  DATE   24-1
25
  ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES AND PRODUCTION PROPERTIES   25-1
26
  ILLUSTRATIONS   26-1
List of Tables
         
3.1
  IN-PLACE COAL RESOURCES SUMMARY   3-2
6.1
  IVANHOE MINES MONGOLIA INC. PROPERTY CONTROL RIGHTS   6-2
11.1
  NARIIN SUKHAIT PROPERTY COAL SEAM TRUE THICKNESS   11-2
13.1
  EXPLORATION DRILLING SUMMARY   13-2
13.2
  DRILL HOLE SUMMARY FOR SOUTH, EAST, AND WEST FIELDS   13-3
18.1
  RAW COAL QUALITY, SOUTH FIELD, NO. 5 SEAM   18-2
18.2
  2004 RAW COAL QUALITY, SOUTH FIELD, NO. 5 SEAM   18-2
18.3
  RAW COAL QUALITY EAST FIELD, UPPER SEAMS   18-2
18.4
  RAW COAL QUALITY WEST FIELD, NO. 5 SEAM   18-3
18.5
  RAW COAL QUALITY WEST FIELD, UPPER SEAMS   18-3
18.6
  NARIIN SUKHAIT PROPERTY RAW COAL QUAITY — REVERSE CIRCULATION DRILLING   18-4
18.7
  NARIIN SUKHAIT PROPERTY OPTIMIZED QUANTITIES   18-9
18.8
  NARIIN SUKHAIT PROPERTY FLOAT & SINK ANALYSIS (DRY BASIS   18-11
18.9
  NARIIN SUKHAIT METALURGIAL PROPERTIES   18-15
18.10
  NARIIN SUKHAIT COAL QUALITY WITH RANK CALCULATIONS   18-16
19.1
  COAL RESOURCE/RESERVE CRITERIA   19-2
19.2
  SOUTH FIELD IN-PLACE COAL RESOURCES SUMMARY   19-3
19.3
  EAST FIELD IN-PLACE COAL RESOURCES SUMMARY   19-5
19.4
  WEST FIELD IN-PLACE COAL RESOURCES SUMMARY   19-6
22.1
  ESTIMATED EXPENDITURES, SEPTEMBER THROUGH OCTOBER, 2005   22-2
     
 
  IMMI. 04-3117
 
  Nariin Sukhait
 
  Technical Report
 
  2-2

 


Table of Contents

List of Figures
         
3.1
  LOCATION MAP   SECTION 26
3.2
  COAL ZONE STRATIGRAPHY   SECTION 26
3.3
  IMMI RESOURCE AREAS AND EXPLORATION PROSPECTS   SECTION 26
3.4
  SOUTH FIELD IN-PLACE RESOURCES   SECTION 26
3.5
  EAST FIELD IN-PLACE RESOURCES   SECTION 26
3.6
  WEST FIELD IN-PLACE RESOURCES   SECTION 26
4.1
  LOCATION MAP   SECTION 26
6.1
  IMMI NARIIN SUKHAIT LICENSE AREAS   SECTION 26
7.1
  SOUTHERN MONGOLIA INFRASTRUCTURE   SECTION 26
9.1
  COAL BEARING PROVINCES OF MONGOLIA   SECTION 26
9.2
  OBOTO HURAL BASIN REGIONAL GEOLOGY MAP   SECTION 26
9.3
  COAL ZONE STRATIGRAPHY   SECTION 26
9.4
  RESOURCE AREAS   SECTION 26
9.5
  SOUTH AND EAST FIELDS EXPLORATION GEOLOGY MAP   SECTION 26
9.6
  SOUTH AND EAST FIELDS GEOLOGIC CROSS SECTIONS   SECTION 26
9.7
  WEST FIELD EXPLORATION GEOLOGY MAP   SECTION 26
9.8
  WEST FIELD GEOLOGIC CROSS SECTIONS   SECTION 26
18.1
  SOUTH AND EAST FIELDS CORE QUALITY CORE HOLES   SECTION 26
18.2
  WEST FIELD CORE QUALITY CORE HOLES   SECTION 26
18.3
  FSI VALUES FROM INCREMENTAL SAMPLES, NO. 5 SEAM, SOUTH FIELD   SECTION 26
18.4
  FSI VALUES FROM INCREMENTAL SAMPLES, UPPER SEAMS, EAST FIELD   SECTION 26
19.1
  SOUTH FIELD IN-PLACE RESOURCES   SECTION 26
19.2
  EAST FIELD IN-PLACE RESOURCES   SECTION 26
19.3
  WEST FIELD IN-PLACE RESOURCES   SECTION 26
     
 
  IMMI. 04-3117
 
  Nariin Sukhait
 
  Technical Report
 
  2-3

 


Table of Contents

3   SUMMARY
      Ivanhoe Mines Ltd. (Ivanhoe) and its wholly owned subsidiary, Ivanhoe Mines Mongolia, Inc. (IMMI), commissioned Norwest Corporation (Norwest) to manage and provide technical supervision to a coal exploration program initiated in February, 2005 on its Nariin Sukhait Property in southern Mongolia. The purpose of this exploration program is to provide the basis to commence a commercial mining operation that will supply coal to China’s growing economy. To date, Ivanhoe has been engaged in exploration on 19 individual areas within its Nariin Sukhait Property. Norwest has prepared this Technical Report in accordance with National Instrument 43-101 to report on the initial resources that have been delineated within three of the individual areas on the Nariin Sukhait Property as of August 9, 2005.
 
      The Nariin Sukhait coal deposit is located in the southwest corner of the Omnogovi Aimag (Province) of Mongolia. The deposit is within the Gurvantes Soum, 320km southwest of the provincial capital of Dalanzadgad and 950km south of the nation’s capital Ulaanbaatar (Figure 3.1). The IMMI-controlled property surrounds and is adjacent to the existing Nariin Sukhait Mine, owned and operated by the MAK-Qin Hua Mongolian/Chinese Joint Venture (MAK). The MAK operation currently consists of two open-pit mines on its 28.8km2 mining license. The IMMI-controlled property is through seven exploration licences that cover an area of 3,240km2.
 
      The Nariin Sukhait Property is situated in the Oboto Hural Basin, located in the western part of the South Gobi province. Intermittent coal outcrops of Late Permian age occur along a strike-length of 90km in the upper plate sequence of an arcuate, east-west trending thrust fault, the dominant structural feature of the basin. Previous Russian and Mongolian government-sponsored exploration programs had identified 10 coal seams at Nariin Sukhait. Total thickness for the coal-bearing sequence is approximately 1,370m thick, with a total coal thickness ranging from 68 to 250m (Figure 3.2). Ivanhoe’s exploration has been focused on identifying resources in seams above and including the No. 5 Seam, the thickest seam within the coal-bearing sequence. An additional coal seam, No. 11, has been identified through exploration drilling.
 
      Ivanhoe has been using a multi-faceted approach in its exploration program, employing field mapping, surface resistivity geophysics, trenching, and drilling to identify coal resources. As of August 9, 2005, Ivanhoe has completed 245 drill holes on the Nariin Sukhait Property. Drilling has progressed on three of these areas, the South, East, and West Fields, to a point where an initial resource of 116 million (M) tonnes of coal (measured plus indicated) has been identified with an additional inferred resource of approximately 41M tonnes as illustrated in Table 3.1. As of August 9, 2005, a total of 141 drill holes have been completed in the South, East, and West Fields.
     
 
  IMMI. 04-3117
 
  Nariin Sukhait
 
  Technical Report
 
  3-1

 


Table of Contents

Table 3.1
In-Place Coal Resources Summary
As of August 9, 2005
                                 
            In-Place Resources  
    ASTM     (Tonnes)  
Area   Group   Measured     Indicated     Inferred  
South Field
      9,771,000       8,704,000       9,870,000  
East Field
  High Volatile Bituminous     20,007,000       10,862,000       5,086,000  
West Field
      33,277,000       33,545,000       26,806,000  
Total
            116,166,000       41,762,000  
      The South and East Fields are directly adjacent to the East Pit, currently being mined for No. 5 Seam coal by the MAK operation (Figure 3.3). The South and East Fields are divided by a northwest trending fault that extends along the east side of the East Pit. Drilling in the South Field has focused on delineating the No. 5 Seam as it projects down-dip and along strike from the East Pit. Drilling has identified 18.5M tonnes of measured and indicated resources in the South Field. Thirty drill holes define the No. 5 Seam with an average seam thickness of 58.2m, dipping at 45° to the south.
 
      The East Field is located on the downthrown side of the northwest trending fault that separates it from the South Field. Coal resources have been identified in the Nos. 8, 9, and 10 Seams. The seams are developed as multiple bench sequences that combined carry an average coal thickness of 15.8m. Beds dip from 45° to 60° towards the southeast for a strike length of 1.8km. Drilling has identified 30.9M tonnes of coal in the measured and indicated resource categories.
 
      The West Field is located 6.5km west of the South Field, adjacent to and south of the MAK mining license. The field is approximately 1.6km southwest of the MAK West Pit. Drilling has targeted the Nos. 5, 8, 9, 10, and 11 Seams along the limbs of a southwest plunging antiform. Seventy-one drill holes define a measured and indicated resource of 66.8M tonnes in the West Field. Along the southeast limb of the antiform, drilling has intersected seams Nos. 5 thru 10 in strata dipping from 45° to 60° toward the southeast. Strata along the northwest limb have been either offset and rotated by reverse faulting and/or represent an overturned sequence of anticlinal folding. Drilling has intersected Seams Nos. 8 through 11 dipping south-southwest at approximately 35°. The No. 5 Seam averages 52.5m thick along the southeast limb. The upper seams for the southeast limb have a combined average coal thickness of 4.3m. The upper seams on the northwest limb have a combined thickness coal averaging 4.2m.
     
 
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      Proximate and thermal testing has been completed for samples from 29 core holes and 15 reverse circulation drill holes. At this time, washability and metallurgical tests have been completed for samples from six drill holes. Coal quality testing results of the coal seams in all three fields ranks the Nariin Sukhait coals as high-volatile bituminous under ASTM standards. Tests indicate that much of the No. 5 Seam is high rank, low ash, low sulphur coal.
 
      In accordance with National Instrument 43-101, Norwest has used the referenced document, the Canadian Institute of Mining, Metallurgy and Petroleum’s CIM “Definition Standards on Mineral Resources and Reserves” adopted by CIM Council on November 14, 2004 and referenced the Geological Survey of Canada Paper 88-21 “A Standardized Coal Resource/Reserve Reporting System for Canada” (GSC Paper 88-21) during the classification, estimation and reporting of coal resources for the Nariin Sukhait Property.
 
      To facilitate the estimation of resources in the Nariin Sukhait Property, Norwest developed geological models for the South, East and West Fields using Surpac Minex® software. Key horizons or “surfaces” were modeled to provide the necessary limits for volume estimation. Volumes were converted to tonnages by application of density values representative of the coal seams as derived from available coal quality data.
 
      The in-place resources within the South, East, and West Fields of the Nariin Sukhait Property, summarized in Table 3.1, cover a combined area of approximately 1.8km2. The in-place resource areas are shown in Figures 3.4, 3.5, and 3.6. These resources identified through the current exploration program have been determined to be of immediate interest, suitable for surface mining to a maximum depth of 250m, with minimum thickness consistent with recommendations of GSC 88-21.
 
      Exploration is expected to continue through the end of October, 2005. An additional 90 drill holes are expected to be completed by the end of the exploration program. Following the completion of the exploration program, Norwest will prepare a second technical report on the coal resources at Ivanhoe’s Nariin Sukhait Property that will incorporate the results of additional drilling. Following the second technical report on resources at Nariin Sukhait, Norwest intends to prepare a pre-feasibility study for IMMI for the development of a surface mining operation. There are currently no mining activities operating on the Ivanhoe Nariin Sukhait Property.
     
 
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4   INTRODUCTION AND TERMS OF REFERENCE
      Ivanhoe Mines Ltd. (Ivanhoe) is an international mineral exploration and development company. It holds interests in numerous mineral resource properties ranging from full-production mining operations to grass-roots exploration projects, with a particular emphasis on resource properties located in Asia. The company also holds equity investments in several junior, publicly listed mineral exploration companies. Its principal mineral resource properties are the Oyu Tolgoi Project in Mongolia (100% interest) and the Monywa Copper Project in Myanmar (50% interest). Through its subsidiary, Ivanhoe Mines Mongolia, Inc. (IMMI), the company controls several large mineral licenses throughout Mongolia. IMMI is actively exploring for copper, gold, and coal deposits. Ivanhoe is currently in the advance stages of exploration and development of the Oyu Tolgoi copper and gold project (100% interest) in Mongolia as well as maintaining equity interests in Asia Gold Corp. and Jinshan Gold Mines Inc. The company was incorporated in 1994 under the name 463212 B.C., Ltd. and changed its name to Indochina Goldfields, Ltd. in 1994, and then to Ivanhoe Mines, Ltd. in 1999. Ivanhoe Mines is based in Vancouver, Canada. The company is listed on the Toronto and New York stock exchanges under the symbol IVN.
 
      IMMI currently controls coal resources in the Nariin Sukhait region of the Omnogovi Aimag (South Gobi Province), Mongolia. Nariin Sukhait is located 40km north of the Chinese border, and approximately 320km southwest of the city of Dalandzadgad (Figure 4.1). IMMI-controlled licenses are adjacent to the existing Nariin Sukhait Mine, which is owned and operated by MAK-Qin Hua Mongolian/Chinese Joint Venture (MAK). The existing Nariin Sukhait Mine has a reported production capacity of approximately two million tonnes per year (M tpy) of coal from two operating open-pits. These pits are referred to as the East Pit and West Pit. Produced coal is trucked to a Chinese steel mill some 400km away. IMMI wishes to further develop the Nariin Sukhait coal deposits and provide coal for domestic and Chinese markets. To assist in that effort IMMI has commissioned the Norwest Corporation (Norwest) to undertake a technical and economic study of the Nariin Sukhait resource to a ‘pre-feasibility’ level.
 
      IMMI initiated coal exploration in the Nariin Sukhait area in October 2004, by completing a series of five core holes. These core holes were located on IMMI-controlled ground directly south of the MAK East Pit. Norwest’s work on the Nariin Sukhait Project began in late January, 2005, with a site visit and initiation of a conceptual design for a 5M tonne ‘starter pit’, a small scale operation that was to be adjacent to the existing MAK-controlled surface operation. That work was immediately followed by an extensive and ongoing exploration program in the Narrin Sukhait region which essentially commenced in March 2005. Throughout the current exploration program, Norwest has provided on site management and technical assistance. Norwest intends to use the information gained from this program to prepare a pre-feasibility study for the development of a surface mining operation at Nariin Sukhait.
     
 
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5   DISCLAIMER
      This report has been prepared for Ivanhoe and its subsidiary, IMMI by Norwest. The findings and conclusions are based on information developed by IMMI and Norwest from data collected through exploration conducted between late 2004 through August of 2005. Guidance, on-site management and data validation was provided by Norwest. This report is intended to be used by Ivanhoe and IMMI only, subject to the terms and conditions of its contract with Norwest. Any other use of, or reliance on, this report by any third party is at that party’s sole risk.
     
 
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6   PROPERTY DESCRIPTION AND LOCATION
      The Nariin Sukhait coal deposit is located in the southwest corner of the Omnogovi Aimag (Province) of Mongolia at latitude 42° 50’ N and longitude 101° 40’ E. The deposit is within the Gurvantes Soum, 320km southwest of the provincial capital of Dalanzadgad and 950km south of the nation’s capital Ulaanbaatar, shown previously in Figure 4.1.
 
      The IMMI-controlled property surrounds and is adjacent to the existing Nariin Sukhait Mine, owned and operated by MAK-Qin Hua Mongolian/Chinese Joint Venture. The MAK Nariin Sukhait Mine currently operates two open-pit mines on its 28.8km2 mining license. The MAK East Pit is directly adjacent to the north of the South Field where IMMI has identified resources in the No. 5 Seam (Figure 6.1).
 
      The IMMI property is controlled through seven contiguous exploration licences that cover an area of 3,240km2. The exploration tenements are listed in Table 6.1.
 
      IMMI formalized an agreement with Asia Gold on July 31, 2003 that grants IMMI rights to all coal resources and reserves on Asia Gold-controlled properties in the South Gobi region while Asia Gold retains rights to all other potential mineral resources.
 
      Exploration licences are granted by the Mongolian government for a period of three years with the right to extend the period twice for two additional years each. Exploration license holders have the following rights:
  1.   The exclusive right to conduct exploration for minerals within the boundaries of an exploration claim
 
  2.   The exclusive right to obtain a mining license for any part of an exploration
 
  3.   The right to transfer or pledge all or part of an exploration license in accordance with the terms and conditions of the mining law
 
  4.   The right to have access to, entry on, and transit through, the exploration area and a right to construct temporary structures necessary for conducting exploration activities
 
  5.   The right of entry to and transit through the land adjacent to the exploration area for the purpose of gaining access and entry to the exploration area
 
  6.   The right of entry to and transit through land owned or used by other persons in order to exercise the rights described in this Article. This right shall be determined by a contract between the license holder and the landowner or land-user in accordance with the provisions of the Civil law.
     
 
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Table 6.1
Ivanhoe Mines Mongolia, Inc.
Property Control Rights
                                                 
License       Inception   License Coordinates               Mineral
Number   Licensee   Date   Corner   Easting   Northing   Area (km2)   Lessor   Interest
 
                1     102°00’00”   43°02’00”                    
 
                2     102°30’00”   43°02’00”                    
 
  Ivanhoe Mongolian   Mar. 10,     3     102°30’00”   42°50’00”                 100 %
9442X
  Mines, Inc.     2003       4     102°00’00”   42°50’00”     914.9         Minerals
 
                5     102°00’00”   42°56’00”                    
 
                6     102°00’00”   43°01’20”                    
 
                1     101°16’30”   43°01’20”                    
 
                2     101°35’00”   43°01’20”                    
 
                3     101°35’00”   43°00’00”                    
 
  Ivanhoe Mongolian   Mar. 10,     4     101°43’00”   43°00’00”                 100 %
9443X
  Mines, Inc.     2003       5     101°43’00”   42°59’00”     382.4         Minerals
 
                6     101°50’00”   42°59’00”                    
 
                7     101°50’00”   42°56’00”                    
 
                8     101°16’30”   42°56’00”                    
 
                1     100°30’00”   42°57’00”                    
 
                2     101°00’00”   42°57’00”                 100 %
 
  Ivanhoe Mongolian   Mar. 10,     3     101°00’00”   42°56’00”     493.4         Minerals
9448X
  Mines, Inc.     2003       4     101°00’00”   42°50’00”              
 
                5     100°30’00”   42°50’00”                    
 
                1     101°00’00”   42°56’00”                    
 
                2     102°00’00”   42°56’00”                    
 
                3     102°00’00”   42°50’00”                    
 
                4     102°00’00”   42°45’00”                    
 
                5     101°26’00”   42°45’00”                 100 %
 
  Ivanhoe Mongolian   Mar. 10,     6     101°26’00”   42°46’00”     1476.7         Minerals
9449X
  Mines, Inc.     2003       7     101°20’30”   42°46’00”              
 
                8     101°20’30”   42°46’30”                    
 
                9     101°10’56”   42°46’30”                    
 
                10     101°10’56”   42°50’00”                    
 
                11     101°00’00”   42°50’00”                    
 
                1     100°36’25.4”   43°07’08”                    
 
                2     101°00’00”   43°07’08”                    
 
                3     101°00’00”   43°02’00”                    
 
                4     101°08’05”   43°02’00”                    
 
                5     101°08’05”   42°59’58”                    
 
                6     101°16’30”   42°59’58”                    
 
      Dec. 28,     7     101°16’30”   42°56’00”     569.7     Ivanhoe Mongolian        
5820X
  Asia Gold, Inc.     2002       8     101°00’00”   42°56’00”           Mines, Inc.   100% Coal
 
                9     101°00’00”   42°57’00”                    
 
                10     100°30’00”   42°57’00”                    
 
                11     100°30’00”   43°04’00”                    
 
                12     100°31’25”   43°04’00”                    
 
                13     100°31’25”   43°05’51.4”                    
 
                14     100°36’25.4”   43°05’51.4”                    
 
                1     101°08’05”   43°02’00”                    
 
      Dec. 28,     2     102°00’00”   43°02’00”     114     Ivanhoe Mongolian        
6359X
  Asia Gold, Inc.     2002       3     102°00’00”   43°01’20”           Mines, Inc.   100% Coal
 
                4     101°08’05”   43°01’20”                    
 
                1     101°35’00”   43°01’20”                    
 
                2     102°00’00”   43°01’20”                    
 
                3     102°00’00”   42°56’00”                    
 
      Dec. 28,     4     101°50’00”   42°56’00”     204.2     Ivanhoe Mongolian        
5264X
  Asia Gold, Inc.     2002       5     101°50’00”   42°59’00”           Mines, Inc.   100% Coal
 
                6     101°43’00”   42°59’00”                    
 
                7     101°43’00”   43°00’00”                    
 
                8     101°35’00”   43°00’00”                    
     
 
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      Following a successful exploration program, an exploration license holder can apply for a mining license to any portion of the exploration license. A mining license is granted for a period of 40 years and provides the licensee with the following rights:
  1.   The exclusive right to engage in mining of minerals within the mining license
 
  2.   The right to manage its operations and market its products
 
  3.   The right to sell mineral products from the mining license at market prices on domestic and foreign markets
 
  4.   The exclusive right to conduct exploration for minerals within the mining license
 
  5.   The right to transfer and pledge all or part of the mining license
 
  6.   The right to extend the term of the mining license once for a period of forty (40) years
 
  7.   The right of entry to and transit through the mining license, use of the mining license, the right to construct necessary structures, and the right to conduct other activities related to mining and exploration
 
  8.   The right of entry to and transit through the land adjacent to the mining license
 
  9.   The right of entry to and transit through land owned or used by other persons in order to exercise the above mentioned rights. This right shall be determined by a contract between the license holder and the landowner or land-user in accordance with the provisions of the Civil law
 
  10.   The right to use water, subject to compliance with applicable laws.
     
 
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7   ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY
      The Nariin Sukhait deposit is located in south-central Mongolia approximately 40km north of the border with China. The closest major center is Dalanzadgad, located approximately 320km to the northeast. The deposit lies within the Gurvantes Soum of the Omnogovi Aimag. The transportation network can be characterized as primitive, with soum centers connected by a network of unimproved roads. Within the property, access is achieved by a network of unimproved roads and cross-country trails. Nearly all the property can be reached with four-wheel-drive vehicles (Figure 7.1).
 
      The principal access to Ulaanbaatar is by air from Beijing, Seoul, Berlin, or Moscow. Ulaanbaatar is the main staging center for exploration projects undertaken in Mongolia. Most material goods needed for operating under remote conditions and good communications for voice and electronic transmittal are available in Ulaanbaatar. Regular air service is available from Ulaanbaatar to Dalanzadgad. Dalanzadgad provides a secondary source for material goods, primarily food and fuel. Travel from Dalanzadgad to the property takes approximately six hours by overland vehicle.
 
      The nearest in-country rail line is the Trans-Mongolia Railway that runs northwest to southeast and connects Ulaanbaatar to Beijing. The nearest point on this line is approximately 870km to the east at the Chinese border. A second rail line is currently under construction in China that will bring railway access to within 40km of Nariin Sukhait, providing an advantageous shipping conduit for coal.
 
      The Nariin Sukhait deposit is within the physiographic region of the Gobi Desert. The surface expression of the deposit ranges from flat desert plains to moderately hilly terrain. Surface elevation ranges from 1515 to 1555m above sea level. The Noyon and Tost mountain ranges are located 5 to 7km north of Nariin Sukhait, rising 150 to 300m above the basin. Vegetation is sparse, consisting primarily of small shrubs and grasses. The area supports a traditional subsistence economy in which semi-nomadic herdsman are engaged in husbandry of sheep, goats, camels, cattle and horses. The Omnogovi Aimag is the most sparsely populated province in Mongolia with a density of 0.8 people/km2.
 
      The region experiences a continental desert climate. Temperature typically ranges from 0° — 30°C in the winter, increasing to 30° — 40° in the summer months. High winds occur frequently; these tend to moderate the effects of summer heat and enhance the chill of winter. Average rainfall is approximately 530mm with most precipitation occurring during the summer months.
     
 
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      Over the past several years there has been substantial growth in exploration activities in Mongolia. This has led to a greater availability of support services such as drilling equipment, earth-moving and excavating equipment, analytical services, and transportation. There is an adequate source of skilled and unskilled labor, though some specialties require the services of expatriate personnel.
 
      There are currently no improved services or infrastructure at the Nariin Sukhait Property. Future development of the property will require installing housing, electricity, and developing a water supply.
     
 
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8   HISTORY
      The first geologic investigations at Nariin Sukhait occurred between 1951 and 1952. This initial geologic investigation led by V.S. Volkhonina, included mapping at a scale of 1:500,000. Coal was first identified at Nariin Sukhait in 1971 by a Mongolian exploration survey led by D. Dashtseren. Subsequent exploration through 1991 led to the identification of a resource area 200 to 400m wide, extending for a distance of 9km. Within this resource area two detailed areas, one 800m by 400m and another 400m by 300m in size, were identified.
8.1   Nariin Sukhait Mine
 
    The IMMI property is adjacent to and surrounds the MAK Nariin Sukhait Mine, owned and operated by MAK-Qin Hua Mongolian/Chinese Joint Venture. Operations began at the Nariin Sukhait Mine in 2003. The operation currently mines coal from the No. 5 Seam from two open-pit mines. Annual production is estimated to be approximately 2M tpy of both thermal and coking blend coal, which is trucked to a Chinese steel mill some 400km away. The mine operates with a workforce of approximately 100 miners, a mixed Chinese and Mongolian workforce, and uses a standard truck-shovel configuration. Coal and overburden are removed by shovel, front loaders, backhoe and dozer. Road-hauling tractor-trailer trucks are loaded directly in the mine and deliver coal directly to the consumer in China.
     
 
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9   GEOLOGICAL SETTING
9.1   Regional Setting
 
    Pre-Mesozoic rocks of Mongolia and central Asia reflect a complex history of continental accretion (Heubeck, 2001). In southern Mongolia this has resulted in Ordovician and Silurian units interpreted as part of an accretionary wedge/ocean margin environment, and widespread Devonian to Carboniferous units derived from a volcanic arc setting. The late Paleozoic arc appears to have been complex, and to have stretched across most of southern Mongolia. The arc most likely faced south toward an ocean separating Asia from the north China and Tarim blocks. Closure of this ocean is not well constrained, but some evidence suggests it was diachronous, beginning in the early Permian in southwest Mongolia, but not until the latest Permian in the East Gobi Basin area (Lamb and Badarch, 2001). This period of accretion and deformation has been termed the Hercynian Orogeny by earlier workers. By the late Permian, a mature continental setting had developed and the overall structural grain of the region was in place.
 
    Continued intraplate deformation took place in the region during the late Permian and early Mesozoic. In the general area of Nariin Sukhait, this has been interpreted as the creation of a foreland style sedimentary basin (Hendrix et al, 1996; 2001). However, recent work by Meng et al (2003) has uncovered evidence of extensional tectonics and sedimentation elsewhere in southern Mongolia and northern China during this time frame. Either way, late Permian and Triassic sediment was largely derived from the uplifted regions of the former volcanic arc, and was deposited into continental basins under the influence of active tectonics. Regionally, conditions developed that allowed for the accumulation of thick coal deposits of late Permian age at localities such as Tsaagan Tolgoi, Tavan Tolgoi and at Nariin Sukhait.
 
    The Mesozoic geologic history of southern Mongolia is dominated by an upper Jurassic to lower Cretaceous “Basin and Range style” rifting event. The period of rifting and related sedimentation appears to have been followed by a period of “tectonic inversion” whereby crustal shortening took place and many of the normal faults in the area became reactivated as reverse faults. A package of relatively undeformed late Cretaceous overlap sediments were deposited above this unconformity. This package is widely exposed regionally and contains the dinosaur fauna for which the Gobi Desert is famous. This was followed by the excavation of large pediment surfaces and minor episodes of Paleogene, Neogene and Quaternary sedimentation (Graham et al, 2001).
 
    There are 15 major coal bearing provinces within Mongolia containing strata of the Carboniferous, Permian, Jurassic, and Cretaceous ages (Figure 9.1). In general, coal deposits in the western portion of the country are older and of higher rank. Progressing eastward across the country, coals are younger and decrease in rank, from bituminous and subbituminous coals found in the west and central portion of the country to Cretaceous age lignites in the east.
     
 
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      Mongolia’s coal deposits were formed in intra-cratonic basins, far removed from the tectonic plate margin environments that typify much of the world’s coal resources. Graben-like subsidence of the basement rocks led to preferred sites of deposition of sediments and the growth and accumulation of peat. The older basins experienced continued orogenic deformation through time and are folded and faulted to varying degrees.
 
      The Nariin Sukhait deposit is located in the South Gobi Province (Figure 9.1). The South Gobi province occupies approximately 40,000km2 in south-central Mongolia. Coal-bearing strata within the province are of Permian age and contain thick sequences of bituminous coal. The coal-bearing strata occupy a series of east-west trending foreland and intermontane basins that developed in response to compression and uplift during the end of the Hercynian orogeny.
 
      The Nariin Sukhait deposit is situated in the Oboto Hural Basin, located in the eastern part of the South Gobi province (Figure 9.2). An arcuate, east-west trending thrust fault, the Nariin Sukhait Fault, forms the dominant structural feature of the basin, extending across the northern margin of the property. Sediments on the south (upper plate) side of the thrust fault are primarily Late Permian, clastic rocks containing numerous coal seams, and Triassic rocks composed primarily of coarse sandstone and conglomerate. Intermittent outcrops of the coal-bearing section occur along the strike-length of the fault for approximately 90km. The lower plate of the Nariin Sukhait fault is dominated by a variety of complexly deformed late Paleozoic rocks, including limited areas of late Permian sandstone and coal-bearing rocks. Small areas of late Cretaceous overlap sediments are locally preserved immediately upslope of the Nariin Sukait fault line scarp, where the sediments appear to have ponded. A variety of late Cenozoic pediment surfaces and related gravel deposits cover significant portions of the lower plate (north) side of the fault, but are observed to cross the fault and cover portions of the upper plate as well.
 
  9.2   Coal Occurrences
 
      Coal-bearing sediments developed in an intermontane basin during the Late Permian age. Non-coal lithotypes are predominantly siltstone, sandstone, conglomerate, and mudstone. Previous Russian and Mongolian government-sponsored exploration programs had identified 10 coal seams at Nariin Sukhait. Total thickness for the coal-bearing sequence is approximately 1,370m thick, with a total coal thickness ranging from 68 to 250m (Figure 9.3). Ivanhoe’s exploration has been focused on identifying resources in seams above and including the No. 5 Seam. Drilling has not penetrated the Nos. 1 through 4 seams. The No. 5 Seam is the thickest seam in the sequence ranging in thickness from 7.9 to 94.7m, averaging 40.1m. The seam typically contains 4 to 5 prominent benches separated by thin mudstone interburden, 0 to 0.8m thick. The No. 6 Seam occurs 180 to 190m above the No. 5 Seam. The No. 6 Seam is approximately 1.0m thick and does not appear to be laterally persistent throughout the area. The No. 7 Seam is located approximately 10m above the No. 6 Seam. The No. 7 Seam has an average thickness of 0.5m. The seam lacks
     
 
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    lateral persistence and pinches out in many areas. The Nos. 6 and 7 Seams have not been included in resource estimation. The No. 8 Seam occurs approximately 60m above the No. 7 Seam. The No. 8 Seam is a multiple bench seam, typically occurring as 1 to 3 subseams. Overall seam thickness ranges from 1.0 to 23.1m, averaging 6.7m. Total interburden between the subseams ranges from 0 to 2.5m, averaging 1.5m. Average total coal thickness for the No. 8 Seam is 5.2m. The No. 9 Seam is located approximately 10m above the No. 8 Seam. In the East Field, the No. 9 Seam is a multiple bench seam, separated by relatively thin, discontinuous partings. Average seam thickness is approximately 21.9m. Coal benches are separated by clay and rock partings ranging from 0.1 to 1.6m. In the West Field, the No. 9 Seam occurs as 2 to 8 distinct subseams. Overall seam thickness ranges from 0.4 to 73.6m, averaging 30.1m. Total interburden, between the subseams ranges from 0 to 33.0m, averaging 14.3m. Average total coal thickness for the No. 9 Seam in the West Field is 15.8m. The No. 10 Seam is located 15m above the No. 9 Seam. The No. 10 Seam is a multiple bench seam, typically occurring as 2 to 5 subseams. Overall seam thickness ranges from 1.9 to 71.7m, averaging 23.0m. Total interburden, between the subseams ranges from 0 to 39.6m, averaging 6.0m. Average total coal thickness for the No. 10 Seam is 13.4m. Drilling in the West Field has identified an additional coal seam overlying the No. 10 Seam. This Seam has been designated the No. 11 Seam. The No. 11 Seam occurs 2 to 14m above the No. 10 Seam. The No. 11 Seam is a multiple bench seam, typically occurring as 5 to 8 subseams. Overall seam thickness ranges from 8.5 to 82.0m, averaging 43.5m. Total interburden, between the subseams ranges from 4.7 to 35.6m, averaging 17.6m.
 
9.3   Property Geology
 
    The IMMI Nariin Sukhait resource area consists of three distinct and separate geographic areas which are located directly to the south, southeast and east of the existing MAK mining license. The resource areas are referred to as South Field, East Field and West Field. (Figure 9.4)
 
    South Field
 
    The No. 5 Seam is currently being mined from the MAK East Pit, adjacent to the north boundary of the field. Two structural features dominate the geologic setting of the South Field (Figure 9.5). A tightly-folded anticline projects outward from the East Pit in a south-southwest direction. Strata on the southeast limb dip 3°5 to 55° to the southeast. The strata on the northwest limb dip more steeply at 42° to 60° and strike in a northerly direction. Cross section A-A’ shown in Figure 9.6 illustrates several structural and stratigraphic elements of the south field.
 
    A northwest trending fault forms the second dominating feature of the South Field. The fault forms the boundary with the East Field. Drilling and field evidence indicate the east side of the fault has been downthrown approximately 72m.
     
 
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      East Field
 
      From the northwest-trending fault that forms the boundary between the South and East Field, Late Permian strata follows a general strike of N70E° to where they are truncated by the Nariin Sukhait Thrust Fault (Figure 9.5). Outcrop exposures belonging to the Nos. 8, 9, and 10 Seams have been traced across 1.8km of the East Field and parts of the adjacent MAK mining license. Drilling along section lines has demonstrated down-dip continuity of the Nos. 8, 9, and 10 Seams at an average dip of 52°. Lateral correlation across section lines show stratigraphic displacement. It is currently interpreted that three or more north or northeast trending faults disrupt the coal-bearing strata into three or more fault blocks (Geological Cross Section D-D’ in Figure 9.6). Several drill holes have intersected abnormally thick intervals of coal that at this time are interpreted to be the result of tectonic deformation from reverse faulting. Maximum vertical seam displacement across drill-line sections is approximately 90m.
 
      West Field
 
      A southwest-plunging antiform characterizes the structure of the West Field (Figure 9.7). The No. 5 Seam outcrops along the axis of the antiform. Outcrop mapping and trenching have traced the surface exposures of the Nos. 8, 9, and 10 seams across most of the southeast limb and along several sections of the northwest limb. Section line drilling has demonstrated down-dip continuity of the Nos. 5, 7, 8, 9, and 10 Seams, dipping 45 to 60° to the southwest as shown in the cross sections in Figure 9.8.
 
      Drilling on the northwest limb demonstrates down-dip and lateral continuity of the upper coal seams (Nos. 7 — 11). Bedding, however, dips to the south at 30 to 40°. This would indicate that: 1) the structure is an anticline with strata overturned to the northwest, and/or 2) much of the northwest limb has been faulted and rotated. The complexity of the structure has required splitting the field into two separate resource blocks.
     
 
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10   DEPOSIT TYPES
The definition of “Deposit Type” for coal properties is different from that applied to other types of geologic deposits. Criteria applied to coal deposits for the purposes of determination of coal resources and reserves include both “Geology Type” as well as “Deposit Type”. For coal deposits this is an important concept because the classification of a coal deposit as a particular Reserves and Resources.
“Geology Type” for coal deposits is a parameter that is specified in Geological Survey of Canada (GSC) Paper 88-21, which is a reference for coal deposits as specified in NI 43-101. Coal “Geology Type” is a definition of the amount of geological complexity, usually imposed by the structural complexity of the area, and the classification of a coal deposit by “Geology Type” determines the approach to be used for the resource/reserve estimation procedures and the limits to be applied to certain key estimation criteria. The identification of a particular Geology Type for a coal property defines the confidence that can be placed in the extrapolation of data values away from a particular point of reference such as a drill hole.
The classification scheme of GSC Paper 88-21 is similar to many other international coal reserve classification systems but it has one significant difference. This system is designed to accommodate differences in the degree of tectonic deformation of different coal deposits in Canada. Four classes are provided for that range:
Low — Deposits in the low category are relatively unaffected by tectonic deformation. Coal seams are flat-lying to very gently dipping (0-5°), and are generally unfaulted, although small-displacement normal faults and compaction may occur.
Moderate — Deposits in this category have been affected to some extent by tectonic deformation. They are characterized by homoclines or broad open folds (wavelength greater than 1.5km) with bedding inclinations of generally less than 30°. Faults may be present, but are relatively uncommon and generally have displacements of less than 10m.
Complex — Deposits in this category have been subjected to relatively high levels of tectonic deformation. Tight folds, some with steeply inclined or overturned limbs, may be present, and offsets by faults are common. Individual fault-bounded plates do, however, generally retain normal stratigraphic sequences and seam thicknesses have only rarely been substantially modified from their pre-deformational thickness.
Severe — Deposits in this category have been subjected to extreme levels of tectonic deformation. Tight folds, steeply inclined and overturned beds and large displacement faults are common. The stratigraphic succession between faults may be difficult to ascertain owing to the level of deformation, and coal seams are commonly structurally
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thickened and thinned from their pre-deformational thicknesses. Exploration of these deposits follows an ore-body approach, rather than more conventional strategies commonly applied to stratified deposits.
Norwest has applied the classification scheme of GSC Paper 88-21 to the Nariin Sukhait coal deposits in Mongolia. The Nariin Sukhait deposit has been subjected to a relatively high degree of tectonic deformation. Coal seams explored to date sit in the hanging wall (upper plate) of an east-west trending, regional thrust fault. The hanging wall strata has been further modified by secondary folding, normal and reverse faulting. Coal seams within the three fields are typically inclined in excess of 35°. Fold segments and fault-bounded blocks however, generally retain normal stratigraphic thicknesses and continuity. The Geology Type for the South, East, and West Fields has been determined to be “Complex”.
“Deposit Type” as defined in GSC Paper 88-21 refers to the extraction method most suited to the coal deposit. There are four categories, which are:
  1.   Surface
 
  2.   Underground
 
  3.   Non-conventional
 
  4.   Sterilized.
The Nariin Sukhait deposit is considered to be a “Surface” mineable deposit.
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11   MINERALIZATION
South Area
The No. 5 Seam extends from the northwest-trending fault that defines the east boundary of the field, westward approximately 0.6km toward the axial plane of the anticline. From the axial plane the No. 5 Seam trends north-northwest to where it is exposed in the East Pit on the adjoining MAK mining license.
The Nos. 8, 9, and 10 seams follow a similar trace to the No. 5 Seam, farther south and west, along the limbs of the anticline. The No. 8 Seam can be traced approximately 0.8km across the south facing limb, then northward approximately .05km to the northern property line. Drilling is widely spaced across the south and west portions of the South Field. At this time there has been insufficient drilling to characterize the resource base of the upper coal seams. Average coal thickness and ranges in thickness for the South Field are presented in Table 11.1.
East Field
The Nos. 8, 9, and 10 seams extend from the northwest trending faults that define the western boundary of the field, northeast for approximately 1.8km where it is truncated by the Nariin Sukhait Thrust Fault that transects the basin. Due to the configuration of the property boundary with the adjacent MAK mining license, the Nos. 8, 9, and 10 seams are distributed in two distinct areas within the East Field. Coal thickness ranges for the east Field are presented in Table 11.1.
West Field
Coal Seams in the West Field are divided into three distinct zones across a southwest plunging antiform. The first zone is the No. 5 Seam exposed along the axis of the antiform for approximately 1.0km. The Nos. 8, 9, and 10 Seams on the southeast limb of the antiform define the second zone. The seams extend for approximately 1.8km across the limb, southwest from the northern property line. The Nos. 8, 9, 10, and 11 Seams in the northwest portion of the field form a distinct third zone. Coal seams in this zone dip to the south-southwest between 30 to 35°. Based on current geologic data, Norwest has interpreted the northwest limb of the antiform to be either: 1) an offset and rotated block of strata, due to reverse faulting; or 2) an overturned limb of an anticline with strata dipping back towards the axis. With either interpretation, a high-angle, reverse fault likely occurs directly west of the antiform axis to account for rock-volume displacement between the two limbs of the antiform. Coal thickness and ranges for the West Field are presented in Table 11.1.
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Table 11.1
Nariin Sukhait Property
Coal Seam True Thicknesses
South Field
                                             
        Composite                   Composite In-    
        Seam Thickness   Sub-Seam   Composite Coal   Seam Partings   Composite Seam
Seam   Statistics   (m)   Thickness (m)   Thickness (m)   (m)   Interburden (m)
5
  Minimum     7.92       0.64       0.64       0.00       0.00  
 
  Maximum     94.68       94.68       90.51       4.17       4.17  
 
  Average     42.65       41.88       41.14       0.74       0.77  
 
  Intervals     26       26       26       26       26.00  
East Field
                                             
        Composite                   Composite In-    
        Seam Thickness   Sub-Seam   Composite Coal   Seam Partings   Composite Seam
Seam   Statistics   (m)   Thickness (m)   Thickness (m)   (m)   Interburden (m)
8
  Minimum     1.03       1.03       1.03       0.00       0.00  
 
  Maximum     23.13       22.52       22.52       0.85       0.61  
 
  Average     7.48       5.66       5.54       0.12       1.82  
 
  Intervals     15       15       15       15       15.00  
 
                                           
9
  Minimum     6.09       6.09       2.01       0.00       0.12  
 
  Maximum     50.65       50.65       50.53       7.85       4.08  
 
  Average     23.45       21.90       20.32       1.54       1.58  
 
  Intervals     27       27       27       27       27.00  
 
                                           
10
  Minimum     2.44       2.25       2.25       0.00       0.18  
 
  Maximum     71.71       71.71       68.36       4.26       3.35  
 
  Average     21.53       18.77       17.85       0.92       2.76  
 
  Intervals     23       23       23       23       23.00  
West Field
Southeast Limb
                                             
        Composite                   Composite In-    
        Seam Thickness   Sub-Seam   Composite Coal   Seam Partings   Composite Seam
Seam   Statistics   (m)   Thickness (m)   Thickness (m)   (m)   Interburden (m)
5
  Minimum     12.18       12.18       12.18       0.00       0.00  
 
  Maximum     68.18       68.18       68.18       1.10       0.00  
 
  Average     36.26       36.12       35.98       0.14       0.14  
 
  Intervals     11       11       11       11       11.00  
 
                                           
8
  Minimum     0.73       0.73       0.73       0.00       0.00  
 
  Maximum     12.75       11.31       11.31       0.00       1.44  
 
  Average     5.85       4.92       4.92       0.00       0.93  
 
  Intervals     17       17       17       17       17.00  
 
                                           
9
  Minimum     0.37       0.37       0.37       0.00       0.00  
 
  Maximum     57.95       32.93       32.93       0.49       25.02  
 
  Average     27.09       13.58       13.64       0.05       13.40  
 
  Intervals     31       31       31       31       31.00  
 
                                           
10
  Minimum     0.37       0.37       0.37       0.00       0.00  
 
  Maximum     40.60       16.44       16.44       0.00       24.17  
 
  Average     17.68       7.66       7.64       0.00       10.04  
 
  Intervals     23       23       23       23       23.00  
Northwest Limb
                                             
        Composite                   Composite In-    
        Seam Thickness   Sub-Seam   Composite Coal   Seam Partings   Composite Seam
Seam   Statistics   (m)   Thickness (m)   Thickness (m)   (m)   Interburden (m)
8
  Minimum     2.29       2.29       2.29       0.00       0.00  
 
  Maximum     13.19       10.65       10.65       0.00       2.54  
 
  Average     7.18       5.08       5.08       0.00       2.10  
 
  Intervals     6       6       6       6       6.00  
 
                                           
9
  Minimum     25.89       15.56       15.56       0.00       10.32  
 
  Maximum     73.56       40.55       40.55       3.19       33.01  
 
  Average     46.69       27.69       26.98       0.71       19.00  
 
  Intervals     6       6       6       6       6.00  
 
                                           
10
  Minimum     5.24       2.05       2.05       0.00       3.19  
 
  Maximum     69.55       29.98       29.98       1.39       39.57  
 
  Average     38.47       16.22       15.72       0.50       22.25  
 
  Intervals     12       12       12       12       12.00  
 
                                           
11
  Minimum     8.52       3.85       3.85       0.00       4.67  
 
  Maximum     82.00       46.36       46.36       1.31       35.63  
 
  Average     43.74       26.10       25.90       0.20       17.64  
 
  Intervals     15       15       15       15       15.00  
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12   EXPLORATION
IMMI has used a multi-faceted approach in exploration to identify drilling targets for coal resource delineation. Exploration tools and techniques that have been applied at Nariin Sukhait include:
    Field mapping
 
    Surface-resistivity geophysical surveying
 
    Satellite Imagery
 
    Trenching
 
    Drilling.
Field mapping was initiated in early 2005 and is currently on-going. Most of the terrain can be characterized as low-relief. Over much of the area, coal-bearing stratigraphy is overlain by a layer of unconsolidated sediments of Cretaceous and Cenezoic age, reaching thicknesses of 2 to 5m. Field mapping has been augmented with surface-resistivity geophysical surveying and satellite imagery to identify prospective areas where coal seams may be sub-cropping near surface and to aid in the delineation of structural features that may offset sections of coal-bearing strata. Potential targets identified with the above mentioned techniques are then tested with trenches cut perpendicular to the apparent strike, to expose coal seams close to surface. Trenching has been useful in identifying the near-surface expression of coal seams for locating exploratory drill holes. Coal seam thickness and structure as observed in the trenches are greatly affected by near-surface erosion, alteration, and deformation. Trenching intercepts have been found to be unreliable sources of seam characteristics and structure, and are not used in resource estimation.
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13   DRILLING
IMMI has utilized reverse circulation, conventional rotary, and core drilling in its exploration of the Nariin Sukhait Property. In 2004, IMMI completed five core holes on the South Field to confirm the down-dip extent of the No. 5 Seam being mined in the East Pit of the MAK mining license. The current exploration program commenced drilling in February, 2005. As of August 9, 2005, 245 drill holes had been completed on the Nariin Sukhait Property. One hundred forty-one drill holes have been completed on the South, East, and West fields combined. A drilling summary by method and area is presented in Table 13.1.
Drill hole core and drill cuttings descriptions, geophysical logs and coal analyses data were used to characterize and interpret the stratigraphy of the South, East, and West Fields, particularly with respect to the coal seams. Norwest’s drill hole database for the Nariin Sukhait Property contains a total of 289 drill holes. Thirty-four drill holes within the database were drilled prior to 2004 as reported by Dashkhorol et al (1992) as part of a research exploration study. The majority of these drill holes are in the proximity of what is now the MAK East Pit. Of the 34 drill holes contained in the exploration research study, 28 of the drill holes are located on the adjacent MAK mining license. The remaining 6 drill holes are located in the South and East Fields. A drill hole summary listing drill hole identification, location, and seam intercepts is presented in Table 13.2.
In the current exploration program, the majority of drill holes have been laid out in a series of section lines. Section lines have been spaced at 200 and 400m, aligned perpendicular to the apparent strike of the coal-bearing strata. Along section lines, drill holes are spaced at intervals from one another ranging from 50 to 100m. Drilling is ongoing at the Nariin Sukhait Property to further define resources in the South, East, and West Fields and to define new resources in other areas of the property.
As of August 9, 2005, 141 drill holes have been completed in the South, East, and West Fields. Drilling is ongoing at the Nariin Sukhait Property to further define resources in the South, East, and West Fields and to define new resources in other areas of the property.
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Table 13.1
Exploration Drilling Summary
                                                         
            Reverse-                    
Area   Series   Circulation   Meters   Rotary   Meters   Core   Meters
South Field
  pre- 2003                               3       286  
 
    2004                               5       750  
 
    2005     11       1,860                   13       2,226  
East Field
  pre- 2003                             3       120  
 
    2005     28       5,092       6       800       17       2,296  
West Field
            41       7,438       11       1,445       19       2,799  
A Field
            9       1,434       1       198       4       388  
B Field
            10       1,731       3       453       6       590  
C Field
            11       1,808       2       261              
E Field
            4       474       8       1,174              
F Field
            10       1,266       3       522              
G Field
            5       906                          
H Field
            1       24                          
I Field
                                    4       277  
J Field
                        4       598              
N Field
            12       1,982       8       1,110              
MAC Mining Lease
  pre-2003                             28       1,133  
                                                         
Total
            142       24,015       46       6,561       102       10,865  
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Table 13.2
Drill Hole Summary for
South, East, and West Fields
                                                                 
Drill Hole I   Easting     Northing     Elevation     Seam     Sub-seam     From     To     Thickness  
South Field  
 
H-1
    684140.3       4763237.5       1527.7       5               96.0       181.2       85.2  
 
H-2
    684411.5       4763244.8       1530.1       5               12.1       45.0       32.9  
 
H-3
    684712.1       4763201.9       1528.1       5               35.5       93.0       57.5  
 
H-4
    684729.0       4763123.3       1527.4       5               94.6       141.2       46.6  
 
H-5
    684417.9       4763185.6       1530.8       5               46.4       91.0       44.6  
 
NS-16
    684426.2       4763134.1       1532.9       5               97.6       120.8       23.2  
 
NS-18
    684263.3       4763178.8       1527.9       5               44.4       178.3       133.9  
 
NS-21
    684426.0       4763077.0       1534.0       5               143.5       162.0       18.5  
 
NS-22
    684111.0       4763203.0       1530.0       5               133.5       203.6       70.1  
 
NS-23
    684257.0       4763090.0       1530.0       5               139.8       225.0       85.2  
 
NS-29
    684742.0       4763079.0       1523.0       5               115.4       180.0       64.6  
 
O-08
    684672.4       4763274.2       1526.1       5               3.8       62.5       58.7  
 
O-09
    684029.7       4763559.6       1526.5       5               2.0       69.9       67.9  
 
O-37
    684615.3       4763340.3       1528.6       5               0.3       1.2       0.9  
 
O-37A
    684642.2       4763305.6       1528.0       5               4.1       47.0       42.9  
 
O-38
    684450.7       4763321.2       1530.0       5               7.8       86.1       78.3  
 
O-39
    684423.8       4763402.9       1529.1       5               4.0       46.1       42.1  
 
O-40
    684053.2       4763313.4       1525.6       5               25.2       93.0       67.8  
 
O-41
    684132.7       4763363.8       1527.0       5               5.3       67.1       61.8  
 
O-42
    684187.6       4763396.2       1527.5       5               7.3       53.4       46.1  
 
O-43
    684258.1       4763245.1       1526.6       5               4.5       99.2       94.7  
 
O-44
    684244.7       4763312.3       1527.1       5               4.0       78.4       74.4  
 
O-45
    684165.2       4763258.6       1526.6       5               7.7       108.9       101.2  
 
O-46
    684188.7       4763320.1       1526.8       5               3.8       77.4       73.6  
 
O-47
    684217.8       4763353.7       1527.6       5               4.3       66.6       62.3  
 
O-48
    684354.4       4763294.4       1527.5       5               4.0       15.2       11.2  
 
O-50
    684079.0       4763579.8       1538.7       5               2.0       60.2       58.2  
 

East Field
 
 
NS-06
    684787.5       4763289.2       1530.4       8       800       3.8       7.3       3.5  
 
NS-07
    685514.0       4763595.2       1537.4       10       1020       100.2       108.2       8.0  
 
                                    1010       108.2       111.9       3.7  
 
                                    1000       113.8       128.7       14.9  
 
                            9       900       184.0       202.7       18.7  
 
NS-08
    685677.4       4763714.7       159.8       10       1010       25.6       27.2       1.6  
 
                                    1000       29.5       33.2       3.7  
 
                            9       900       39.6       100.0       60.4  
 
NS-09
    684820.3       4763251.9       1529.4       10       1010       35.0       40.0       5.0  
 
                                    1000       45.5       51.4       5.9  
 
                            9       900       88.8       110.4       21.6  
 
                            8       800       123.3       127.8       4.5  
IMMI. 04-3117
Nariin Sukhait
Technical Report
13-3

 


Table of Contents

Table 13.2
Drill Hole Summary for
South, East, and West Fields
                                                                 
Drill Hole I   Easting     Northing     Elevation     Seam     Sub-seam     From     To     Thickness  
East Field cont’d  
 
NS-10
    685480.8       4763639.7       1537.6       10       1010       60.9       65.0       4.1  
 
                                    1000       65.2       71.8       6.6  
 
                            9       900       128.0       160.2       32.2  
 
                            8       800       184.1       188.2       4.1  
 
NS-12
    684846.6       4763209.9       1528.9       10       1010       70.9       74.5       3.6  
 
                                    1000       76.0       78.3       2.3  
 
                            9       900       125.8       135.8       10.0  
 
                            8       800       145.2       147.2       2.0  
 
NS-14
    685708.4       4763676.2       1540.0       9       900       0.0       15.1       15.1  
 
                            8       800       47.1       50.0       2.9  
 
NS-24
    684781.0       4763203.0       1532.0       10       1010       59.6       62.4       2.8  
 
                                    1000       65.0       69.0       4.0  
 
                            9       800       98.0       116.4       18.4  
 
NS-27R
    685832.0       4763838.0       1537.0       9       900       12.4       25.6       13.2  
 
                            8       810       27.6       29.8       2.2  
 
                                    800       33.3       36.2       2.9  
 
NS-28R
    686043.0       4763890.0       1538.0       9       900       0.0       12.7       12.7  
 
                            8       800       103.0       110.8       7.8  
 
NS-30R
    686017.0       4763928.0       1535.0       8       800       17.9       19.6       1.7  
 
NS-31R
    686246.0       4763989.0       1539.0       9       900       34.4       51.6       17.2  
 
NS-32
    686250.0       4763976.0       1533.0       9       900       33.0       49.4       16.4  
 
NS-33
    685843.0       4763825.0       1534.0       9       900       10.8       20.8       10.0  
 
                            8       810       30.1       31.4       1.3  
 
                                    800       35.4       40.8       5.4  
 
NS-34
    685710.0       4763675.0       1539.0       10       1010       81.2       84.2       3.0  
 
                                    1000       85.6       89.2       3.6  
 
                            9       900       89.8       148.3       58.5  
 
NS-35
    685522.0       4763609.0       1538.0       10       1020       85.0       93.0       8.0  
 
                                    1010       96.4       99.5       3.1  
 
                                    1000       100.8       115.7       14.9  
 
NS-50R
    686087.0       4763856.0       1545.0       10       1010       63.4       67.1       3.7  
 
                                    1000       71.2       73.7       2.5  
 
                            9       900       87.0       135.3       48.3  
 
                            8       810       147.0       158.7       11.7  
 
                                    800       167.0       176.2       9.2  
 
NS-51R
    685895.0       4763768.0       1542.0       10       1010       71.9       73.8       1.9  
 
                                    1000       75.0       77.4       2.4  
 
                            9       900       105.4       175.6       70.2  
 
                            8       810       176.6       184.0       7.4  
 
                                    800       185.0       198.5       13.5  
 
NS-53R
    685142.0       4763191.0       1532.0       10       1010       35.6       43.9       8.3  
 
                                    1000       47.5       109.7       62.2  
 
                            9       900       180.0       246.0       66.0  
IMMI. 04-3117
Nariin Sukhait
Technical Report
13-4

 


Table of Contents

Table 13.2
Drill Hole Summary for
South, East, and West Fields
                                                                 
Drill Hole I   Easting     Northing     Elevation     Seam     Sub-seam     From     To     Thickness  
East Field cont’d  
 
NS-54R
    685155.0       4763166.0       1533.0       10       1020       36.6       38.4       1.8  
 
                                    1010       39.6       43.8       4.2  
 
                                    1000       72.0       123.2       51.2  
 
                            9       900       200.4       213.6       13.2  
 
NS-56R
    685045.0       4763180.0       1520.0       10       1000       25.0       121.4       96.4  
 
                            9       900       127.2       210.4       83.2  
 
NS-57R
    685119.0       4763229.0       1522.0       10       1010       9.6       12.7       3.1  
 
                                    1000       16.6       59.4       42.8  
 
 
                                                       
 
NS-58R
    685173.0       4763115.0       1525.0       10       1020       92.0       96.0       4.0  
 
NS-59R
    685923.0       4763746.0       1536.0       9       900       181.2       197.8       16.6  
 
                            8       810       206.8       215.6       8.8  
 
                                    800       220.8       225.6       4.8  
 
NS-60R
    686106.0       4763820.0       1534.0       10       1010       119.4       120.1       0.7  
 
                                    1000       122.2       125.2       3.0  
 
                            9       900       135.6       188.2       52.6  
 
NS-61R
    686261.0       4763950.0       1539.0       9       900       75.6       96.4       20.8  
 
NS-62R
    685616.0       4763621.0       1531.0       10       1000       17.0       48.0       31.0  
 
                            9       900       110.0       160.0       50.0  
 
                                    900       49.0       106.0       57.0  
 
                            8       810       162.0       178.0       16.0  
 
                                    800       179.0       200.0       21.0  
 
NS-63R
    685639.0       4763572.0       1528.0       9       900       91.0       174.0       83.0  
 
                                    900       176.0       242.0       66.0  
 
NS-64R
    684951.0       4763170.0       1521.0       10       1000       3.4       15.8       12.4  
 
                            9       900       139.6       166.0       26.4  
 
NS-65R
    685040.0       4763080.0       1518.0       10       1000       98.8       216.6       117.8  
 
                            9       900       222.2       235.8       13.6  
 
NS-66R
    685627.0       4763503.0       1535.0       10       1000       191.6       223.0       31.4  
 
NS-70
    684834.0       4763058.0       1524.0       10       1000       0.0       70.0       70.0  
 
NS-71
    684868.0       4763016.0       1524.0       0       1000       24.4       39.0       14.6  
 
NS-72
    686426.0       4764010.0       1541.0       8       810       37.3       40.0       2.7  
 
                                    800       55.0       58.2       3.2  
 
NS-73
    686431.0       4763952.0       1554.0       8       810       105.3       106.7       1.4  
 
                                    800       110.6       112.0       1.4  
 
NS-74
    685578.0       4763529.0       1533.0       10       1020       145.0       160.0       15.0  
 
                                    1010       166.6       174.7       8.1  
 
                                    1000       177.0       195.0       18.0  
IMMI. 04-3117
Nariin Sukhait
Technical Report
13-5

 


Table of Contents

Table 13.2
Drill Hole Summary for
South, East, and West Fields
                                                                 
Drill Hole I   Easting   Northing   Elevation   Seam   Sub-seam   From   To   Thickness
West Field
NSW-01
    676121.8       4762939.1       1524.8       5               28.9       119.4       90.5  
 
NSW-02
    676147.8       4762895.5       1524.6       5               110.7       204.0       93.3  
 
NSW-03
    675926.0       4762871.0       1526.0       5               15.0       77.4       62.4  
 
NSW-04
    675797.0       4762885.0       1513.0       5               3.0       23.0       20.0  
 
NSW-05
    675904.0       4762917.0       1522.0       5               2.5       40.7       38.2  
 
NSW-06
    675700.0       4762863.0       1518.0       6       620       132.8       138.3       5.5  
 
NSW-07
    675867.0       4762961.0       1525.0       6       620       114.1       130.0       15.9  
 
NSW-08
    675822.0       4762961.0       1526.0       6       620       149.2       157.5       8.3  
 
NSW-10
    676307.0       4763011.0       1552.0       5       5       28.2       115.6       87.4  
 
NSW-12
    676472.0       4762834.0       1531.0       9       990       30.5       35.0       4.5  
 
                                    980       37.2       43.3       6.1  
 
                                    970       44.1       46.7       2.6  
 
                                    960       47.6       50.0       2.4  
 
                                    950       51.6       53.3       1.7  
 
                                    940       61.2       73.1       11.9  
 
                            8       810       110.0       112.4       2.5  
 
                                    800       114.4       119.5       5.1  
 
                            7       790       120.5       121.8       1.3  
 
NSW-13R
    676434.0       4763081.0       1522.0       6       620       62.2       76.1       13.9  
 
                                    600       94.0       99.8       5.8  
 
NSW-14R
    676327.0       4762972.0       1523.0       6       620       104.4       118.8       14.4  
 
                                    600       126.1       137.6       11.5  
 
NSW-15
    676457.0       4762877.0       1526.0       9       950       7.7       8.9       1.2  
 
                                    940       19.5       29.0       9.5  
 
                            8       810       46.2       47.9       1.7  
 
                                    800       48.9       54.8       5.9  
 
NSW-16R
    676216.0       4762749.0       1535.0       9       990       27.2       28.9       1.7  
 
                                    980       40.0       45.8       5.8  
 
                                    970       57.6       59.6       2.0  
 
                                    960       62.4       68.8       6.4  
 
                                    950       71.2       74.0       2.8  
 
                                    942       75.9       77.9       2.0  
 
                                    940       80.6       85.8       5.2  
 
                            8       810       99.4       101.2       1.8  
 
                                    800       101.7       107.6       5.9  
 
                            7       790       107.6       109.2       1.6  
IMMI. 04-3117
Nariin Sukhait
Technical Report

13-6

 


Table of Contents

Table 13.2
Drill Hole Summary for
South, East, and West Fields
                                                                 
Drill Hole I   Easting   Northing   Elevation   Seam   Sub-seam   From   To   Thickness
West Field cont’d
NSW-17R
    676241.0       4762719.0       1532.0       10       1030       32.2       41.8       9.6  
 
                                    1010       49.2       51.1       1.9  
 
                                    1000       52.8       62.3       9.5  
 
                            9       990       85.2       86.0       0.8  
 
                                    980       94.9       100.4       5.5  
 
                                    970       105.8       109.0       3.2  
 
                                    960       115.0       118.8       3.8  
 
                                    950       119.8       121.8       2.0  
 
                                    942       126.0       127.2       1.2  
 
                                    940       130.4       138.0       7.6  
 
                            8       800       154.8       162.8       8.0  
 
NSW-18R
    675856.0       4762560.0       1516.0       10       1030       14.0       18.0       4.0  
 
                                    1020       31.3       38.6       7.3  
 
                                    1010       39.3       40.8       1.5  
 
                                    1000       41.4       53.0       11.6  
 
                            9       990       80.0       81.2       1.2  
 
                                    980       84.4       90.5       6.1  
 
                                    970       91.4       105.6       14.2  
 
                                    960       112.0       115.0       3.0  
 
                                    950       120.0       124.0       4.0  
 
                                    942       133.3       134.6       1.3  
 
                                    940       139.4       161.3       21.9  
 
                                    900       170.2       172.6       2.4  
 
NSW-19R
    675878.0       4762520.0       1516.0       10       1030       59.0       68.0       9.0  
 
                                    1000       82.0       100.0       18.0  
 
                            9       990       135.0       137.5       2.5  
 
                                    960       164.0       167.0       3.0  
 
                                    950       171.0       180.0       9.0  
 
                                    942       184.0       187.0       3.0  
 
                                    940       197.0       210.0       13.0  
IMMI. 04-3117
Nariin Sukhait
Technical Report
13-7

 


Table of Contents

Table 13.2
Drill Hole Summary for
South, East, and West Fields
                                                                 
Drill Hole I   Easting   Northing   Elevation   Seam   Sub-seam   From   To   Thickness
West Field cont’d
NSW-20R
    675487.0       4762454.0       1506.0       10       1030       17.0       18.0       1.0  
 
                                    1020       36.0       38.0       2.0  
 
                                    1010       39.0       40.0       1.0  
 
                                    1000       43.0       53.0       10.0  
 
                            9       998       59.0       60.0       1.0  
 
                                    996       63.0       67.0       4.0  
 
                                    990       93.0       94.0       1.0  
 
                                    980       98.0       107.0       9.0  
 
                                    970       113.0       114.0       1.0  
 
                                    960       116.0       118.0       2.0  
 
                                    950       123.0       124.0       1.0  
 
                                    940       132.0       144.0       12.0  
 
                                    900       153.0       156.0       3.0  
 
                            8       810       165.0       167.0       2.0  
 
                                    800       172.0       179.0       7.0  
 
NSW-21
    676457.0       4762877.0       1526.0       10       1010       59.0       63.5       4.5  
 
                                    1000       64.5       75.5       11.0  
 
                            9       980       106.3       112.6       6.3  
 
                                    970       113.6       117.4       3.8  
 
                                    960       118.5       120.4       1.9  
 
                                    950       121.4       122.3       0.9  
 
                                    940       127.8       136.6       8.8  
 
                            8       800       164.5       174.7       10.2  
 
NSW-22
    676814.0       4762992.0       1556.0       9       940       16.2       33.2       17.0  
 
                            8       810       55.8       57.4       1.6  
 
                                    800       57.8       64.4       6.6  
 
                            7       790       65.3       69.4       4.1  
 
NSW-23
    676841.0       4763058.0       1556.0       10       1030       12.4       15.5       3.1  
 
                                    1020       18.0       18.6       0.6  
 
                                    1010       21.4       27.8       6.4  
 
                                    1000       28.3       34.4       6.1  
 
                            9       990       47.0       48.1       1.1  
 
                                    980       48.6       56.0       7.4  
 
NSW-24R
    676498.0       4762810.0       1525.0       10       1030       34.5       35.5       1.0  
 
                                    1010       56.4       61.0       4.6  
 
                                    1000       63.0       73.4       10.4  
 
                            9       980       101.4       107.0       5.6  
 
                                    970       109.0       111.8       2.8  
 
                                    960       112.6       114.0       1.4  
 
                                    950       115.0       116.2       1.2  
IMMI. 04-3117
Nariin Sukhait
Technical Report
13-8

 


Table of Contents

Table 13.2
Drill Hole Summary for
South, East, and West Fields
                                                                 
Drill Hole I   Easting   Northing   Elevation   Seam   Sub-seam   From   To   Thickness
West Field cont’d
NSW-25R
    675514.0       4762426.0       1507.0       11       1100       11.8       13.0       1.2  
 
                            10       1030       57.4       58.8       1.4  
 
                                    1000       72.2       75.8       3.6  
 
                            9       998       84.8       86.0       1.2  
 
                                    996       89.8       93.8       4.0  
 
                                    980       122.4       127.6       5.2  
 
                                    970       128.6       135.4       6.8  
 
                                    940       147.5       160.0       12.5  
 
                            8       810       166.7       169.4       2.7  
 
                                    800       170.5       178.8       8.3  
 
NSW-26R
    675092.0       4762330.0       1514.0       10       1040       42.6       45.7       3.1  
 
                                    1030       53.0       55.3       2.3  
 
NSW-28R
    675112.0       4762422.0       1519.0       10       1050       15.2       17.4       2.2  
 
                                    1040       25.4       27.5       2.1  
 
                                    1030       33.6       37.0       3.4  
 
                                    1020       64.1       65.1       1.0  
 
                                    1010       68.8       70.2       1.4  
 
                                    1000       71.1       76.4       5.3  
 
                            9       998       78.3       81.4       3.1  
 
                                    996       87.6       89.6       2.0  
 
                                    990       91.2       93.4       2.2  
 
                                    980       102.0       113.9       11.9  
 
                                    970       114.5       119.0       4.5  
 
                                    960       121.0       123.0       2.0  
 
                                    950       125.0       125.9       0.9  
 
                                    940       135.0       156.5       21.5  
 
                                    900       158.7       159.3       0.6  
 
                            8       810       160.6       163.0       2.4  
 
                                    800       167.8       170.7       2.9  
 
                            7       790       171.6       172.2       0.6  
 
NSW-29R
    675114.0       4762477.0       1520.0       10       1030       4.4       7.7       3.3  
 
                                    1020       31.1       31.9       0.8  
 
                                    1000       42.9       52.9       10.0  
 
                            9       998       54.5       58.5       4.0  
 
                                    996       64.6       69.5       4.9  
 
                                    980       82.6       89.7       7.1  
 
                                    970       91.0       97.4       6.4  
 
                                    960       101.6       103.6       2.0  
 
                                    950       105.8       107.1       1.3  
 
                                    942       113.4       114.8       1.4  
 
                                    940       123.6       131.4       7.8  
 
                            8       800       140.5       145.9       5.4  
IMMI. 04-3117
Nariin Sukhait
Technical Report
13-9

 


Table of Contents

Table 13.2
Drill Hole Summary for
South, East, and West Fields
                                                                 
Drill Hole I   Easting   Northing   Elevation   Seam   Sub-seam   From   To   Thickness
West Field cont’d
NSW-31R
    676043.0       4762580.0       1506.0       10       1030       75.0       82.4       7.4  
 
                                    1020       83.4       92.0       8.6  
 
                                    1010       92.4       93.4       1.0  
 
                                    1000       94.2       100.8       6.6  
 
                            9       990       140.6       142.6       2.0  
 
                                    980       149.8       151.2       1.4  
 
                                    970       157.0       159.9       2.9  
 
                                    960       162.9       168.4       5.5  
 
                                    950       173.8       176.6       2.8  
 
                                    942       184.6       186.8       2.2  
 
                                    940       192.6       200.8       8.2  
 
NSW-32R
    675701.0       4762496.0       1509.0       10       1040       16.0       17.2       1.2  
 
                                    1030       48.5       53.3       4.8  
 
                                    1020       67.0       70.7       3.7  
 
                                    1010       73.0       73.8       0.8  
 
                                    1000       75.4       82.7       7.3  
 
                            9       980       113.0       120.3       7.3  
 
                                    970       123.3       124.9       1.6  
 
                                    960       128.0       129.7       1.7  
 
                                    950       134.8       136.5       1.7  
 
                                    942       140.5       141.8       1.3  
 
                                    940       150.1       169.6       19.5  
 
                            8       810       178.5       181.5       3.0  
 
                                    800       182.4       187.7       5.3  
 
                            7       790       188.3       191.0       2.7  
 
NSW-33R
    676828.0       4763022.0       1526.0       9       990       19.0       20.2       1.2  
 
                                    980       21.2       29.8       8.6  
 
                                    970       31.0       37.4       6.4  
 
                                    960       38.4       40.6       2.2  
 
                                    940       47.8       62.0       14.2  
 
                            8       810       82.0       83.0       1.0  
 
                                    800       84.0       88.2       4.2  
 
                            7       790       89.4       92.0       2.6  
 
NSW-34R
    674917.0       4762598.0       1562.0       9       990       53.0       55.0       2.0  
 
                                    980       80.0       91.0       11.0  
 
                                    940       135.0       140.0       5.0  
 
NSW-35
    676147.0       4762900.0       1508.0       5               116.4       228.4       112.0  
 
NSW-36
    676318.0       4762969.0       1500.0       6       620       115.0       126.2       11.2  
 
                                    6       133.8       141.0       7.2  
 
NSW-37
    675927.0       4762865.0       1494.0       5       5       26.2       93.0       66.8  
 
NSW-38
    675730.0       4762799.0       1525.0       5       5       40.2       75.4       35.2  
IMMI. 04-3117
Nariin Sukhait
Technical Report
13-10

 


Table of Contents

Table 13.2
Drill Hole Summary for
South, East, and West Fields
                                                                 
Drill Hole I   Easting   Northing   Elevation   Seam   Sub-seam   From   To   Thickness
West Field cont’d
NSW-39
    675285.0       4762459.0       1518.0       10       1030       3.3       9.0       5.7  
 
                                    1020       44.8       49.7       4.9  
 
                                    1000       55.4       63.8       8.4  
 
                            9       998       66.0       69.2       3.2  
 
                                    996       74.2       75.6       1.4  
 
                                    990       87.9       89.4       1.5  
 
                                    980       102.0       104.8       2.8  
 
                                    970       105.2       109.9       4.7  
 
                                    950       111.2       112.8       1.6  
 
                                    940       113.3       126.4       13.1  
 
                                    900       136.3       139.9       3.6  
 
NSW-40
    676250.0       4762716.0       1500.0       10       1030       24.0       29.6       5.6  
 
                                    1010       42.7       45.8       3.1  
 
                                    1000       46.6       55.2       8.6  
 
                            9       998       58.6       59.4       0.8  
 
                                    990       79.4       80.6       1.2  
 
                                    980       90.1       95.2       5.1  
 
                                    970       104.0       112.0       8.0  
 
                                    960       112.6       115.0       2.4  
 
                                    950       117.0       118.0       1.0  
 
                                    942       119.6       120.0       0.4  
 
                                    940       125.4       132.0       6.6  
 
                            8       810       152.4       154.4       2.0  
 
                                    800       155.8       162.0       6.2  
 
NSW-41
    675877.0       4762541.0       1515.0       10       1030       20.8       23.7       2.9  
 
                                    1000       56.2       64.4       8.2  
 
                            9       990       134.4       136.0       1.6  
 
                                    980       141.4       147.0       5.6  
 
                                    970       149.4       153.0       3.6  
 
                                    960       159.0       161.4       2.4  
 
                                    950       167.6       169.0       1.4  
 
                                    942       180.7       181.7       1.0  
 
                                    940       187.2       202.0       14.8  
 
NSW-44
    675402.0       4762656.0       1514.0       11       1170       6.0       13.2       7.2  
 
                                    1160       15.0       17.6       2.6  
 
                                    1150       19.4       21.1       1.7  
 
                                    1140       22.4       23.6       1.2  
 
                                    1130       27.8       38.6       10.8  
 
                                    1120       42.8       44.9       2.1  
 
                                    1100       47.7       52.0       4.3  
 
NSW-45R
    675764.0       4762771.0       1526.0       5               90.0       118.0       28.0  
IMMI. 04-3117
Nariin Sukhait
Technical Report
13-11

 


Table of Contents

Table 13.2
Drill Hole Summary for
South, East, and West Fields
                                                                 
Drill Hole I   Easting   Northing   Elevation   Seam   Sub-seam   From   To   Thickness
West Field cont’d
NSW-46R
    675629.0       4763004.0       1529.0       10       1020       6.0       21.0       15.0  
 
                                    1010       22.8       24.4       1.6  
 
                                    1000       25.4       45.4       20.0  
 
                            9       990       76.4       78.6       2.2  
 
                                    980       90.5       99.0       8.5  
 
                                    970       101.0       102.8       1.8  
 
                                    960       122.4       124.5       2.1  
 
                                    950       129.7       135.0       5.3  
 
                                    942       136.7       142.2       5.5  
 
                                    940       143.3       162.4       19.1  
 
                                    900       164.8       166.2       1.4  
 
                            8       810       171.6       174.4       2.8  
 
NSW-47R
    675647.0       4762960.0       1550.0       10       1030       34.9       44.1       9.2  
 
                                    1020       62.2       68.0       5.8  
 
                                    1010       72.7       74.7       2.0  
 
                                    1000       77.4       92.0       14.6  
 
                            9       990       126.0       130.8       4.8  
 
                                    980       142.0       147.5       5.5  
 
                                    970       148.3       154.0       5.7  
 
                                    960       156.0       161.5       5.5  
 
                                    950       162.3       166.0       3.7  
 
                                    942       170.8       173.6       2.8  
 
NSW-47R
    675647.0       4762960.0       1550.0       9       940       175.2       194.9       19.7  
 
                                    900       201.2       203.0       1.8  
 
                            8       810       208.5       211.0       2.5  
 
                                    800       219.4       222.2       2.8  
 
                            7       790       223.0       224.6       1.6  
 
NSW-49R
    675481.0       4762918.0       1513.0       10       1050       60.0       63.6       3.6  
 
                                    1040       66.0       70.7       4.7  
 
                                    1030       81.2       85.7       4.5  
 
                                    1020       105.0       107.5       2.5  
 
                                    1010       108.4       109.4       1.0  
 
                                    1000       110.5       125.8       15.3  
 
                            9       990       142.6       144.0       1.4  
 
                                    980       148.7       155.0       6.3  
 
                                    970       157.0       159.0       2.0  
 
                                    960       160.0       160.9       0.9  
 
                                    950       161.8       162.6       0.8  
 
                                    940       164.0       173.6       9.6  
 
                                    900       181.6       184.0       2.4  
 
                            8       800       190.0       203.0       13.0  
IMMI. 04-3117
Nariin Sukhait
Technical Report
13-12

 


Table of Contents

Table 13.2
Drill Hole Summary for
South, East, and West Fields
                                                                 
Drill Hole I   Easting   Northing   Elevation   Seam   Sub-seam   From   To   Thickness
West Field cont’d
NSW-50
    675496.0       475496.0       1516.0       10       1050       63.1       64.3       1.2  
 
                                    1030       84.4       90.1       5.7  
 
                                    1020       103.9       106.8       2.9  
 
                                    1010       113.6       114.5       0.9  
 
                                    1000       120.3       125.6       5.3  
 
                            9       990       160.0       161.2       1.2  
 
                                    980       166.9       178.3       11.4  
 
                                    970       179.1       181.2       2.1  
 
                                    960       183.5       186.3       2.8  
 
                                    950       187.9       190.2       2.3  
 
                                    942       193.0       194.5       1.5  
 
                                    940       196.3       211.0       14.7  
 
                                    900       214.6       217.7       3.1  
 
                            8       810       225.6       227.7       2.1  
 
                                    800       230.0       234.7       4.7  
 
NSW-51R
    675327.0       4762786.0       1513.0       11       1120       9.6       12.6       3.0  
 
                                    1100       18.3       20.0       1.7  
 
                            10       1040       136.2       137.7       1.5  
 
                                    1030       142.0       143.0       1.0  
 
                            10       1020       149.6       151.3       1.7  
 
                                    1010       160.9       164.0       3.1  
 
                                    1000       165.0       170.4       5.4  
 
                            9       990       199.6       201.6       2.0  
 
                                    980       208.4       215.4       7.0  
 
                                    970       217.0       220.4       3.4  
 
                                    960       221.0       224.0       3.0  
 
                                    950       224.6       225.5       0.9  
 
                                    940       227.0       235.6       8.6  
 
                                    900       237.9       238.9       1.0  
 
                            8       800       245.6       249.0       3.4  
IMMI. 04-3117
Nariin Sukhait
Technical Report
13-13

 


Table of Contents

Table 13.2
Drill Hole Summary for
South, East, and West Fields
                                                                 
Drill Hole I   Easting   Northing   Elevation   Seam   Sub-seam   From   To   Thickness
West Field cont’d
NSW-52R
    675301.0       4762840.0       1528.0       11       1120       11.0       14.1       3.1  
 
                                    1110       21.3       24.5       3.2  
 
                                    1100       25.2       26.5       1.3  
 
                            10       1030       144.8       146.8       2.0  
 
                                    1020       167.0       168.2       1.2  
 
                                    1010       174.6       177.1       2.5  
 
                                    1000       178.1       184.0       5.9  
 
                            9       990       200.0       202.4       2.4  
 
                                    980       208.9       214.0       5.1  
 
                                    970       214.7       216.3       1.6  
 
                                    960       216.9       217.5       0.6  
 
                                    950       218.5       219.3       0.8  
 
                                    940       220.4       225.5       5.1  
 
                                    900       228.2       231.6       3.4  
 
                            8       810       235.8       236.5       0.7  
 
                                    800       240.4       244.0       3.6  
 
NSW-53R
    675129.0       4762723.0       1551.0       11       1170       27.4       34.2       6.8  
 
                                    1160       35.2       37.3       2.1  
 
                                    1150       38.6       40.0       1.4  
 
                                    1140       42.9       43.9       1.0  
 
                                    1130       45.0       55.3       10.3  
 
                                    1120       62.0       64.8       2.8  
 
                                    1110       71.0       76.5       5.5  
 
                                    1100       77.2       80.9       3.7  
 
                            10       1050       153.6       154.9       1.3  
 
                                    1040       158.8       160.0       1.2  
 
NSW-54R
    675034.0       4762671.0       1518.0       5               137.4       196.2       58.8  
 
NSW-55
    675134.0       4762437.0       1522.0       10       1050       8.2       10.0       1.8  
 
                                    1040       19.6       22.4       2.8  
 
                                    1030       27.0       31.4       4.4  
 
                                    1020       55.4       56.2       0.8  
 
                                    1000       62.0       67.0       5.0  
 
                            9       998       69.8       70.9       1.1  
 
                                    996       75.8       79.0       3.2  
 
                                    990       82.8       84.0       1.2  
 
                                    980       91.8       99.0       7.2  
 
                                    970       103.4       104.3       0.9  
 
                                    960       111.2       112.6       1.4  
 
                                    950       116.2       117.4       1.2  
 
                                    942       119.2       121.4       2.2  
 
                                    940       126.4       139.6       13.2  
 
                                    900       140.2       143.4       3.2  
IMMI. 04-3117
Nariin Sukhait
Technical Report
13-14

 


Table of Contents

Table 13.2
Drill Hole Summary for
South, East, and West Fields
                                                                 
Drill Hole I   Easting   Northing   Elevation   Seam   Sub-seam   From   To   Thickness
West Field cont’d
NSW-56
    675498.0       4762426.0       1516.0       10       1030       42.0       43.5       1.5  
 
                                    1000       62.0       66.2       4.2  
 
                            9       998       79.0       81.7       2.7  
 
                                    996       81.7       84.2       2.5  
 
                                    990       113.8       115.7       1.9  
 
                                    980       121.0       127.3       6.3  
 
                                    970       128.6       137.0       8.4  
 
                                    960       139.4       140.8       1.4  
 
                                    950       145.2       146.2       1.0  
 
                                    942       151.0       152.8       1.8  
 
                                    940       154.3       174.2       19.9  
 
NSW-57
    676485.0       4762813.0       1524.0       10       1010       49.0       52.8       3.8  
 
                                    1000       57.8       61.6       3.8  
 
                            9       990       90.6       92.2       1.6  
 
                                    980       93.2       100.6       7.4  
 
                                    970       102.2       105.8       3.6  
 
                                    960       107.4       108.0       0.6  
 
                                    950       109.4       110.6       1.2  
 
                                    940       115.4       125.0       9.6  
 
                            8       810       157.2       158.6       1.4  
 
                                    800       159.7       165.0       5.3  
 
                            7       790       167.0       168.2       1.2  
 
NSW-58R
    675212.0       4762760.0       1523.0       11       1160       4.6       7.0       2.4  
 
                                    1150       8.8       11.2       2.4  
 
                                    1140       14.4       16.9       2.5  
 
                                    1130       19.6       35.3       15.7  
 
                                    1120       38.0       41.2       3.2  
 
                                    1100       45.5       52.2       6.7  
 
                            10       1050       114.9       116.5       1.6  
 
                                    1040       140.7       142.6       1.9  
 
                                    1030       144.3       145.1       0.8  
 
                                    1020       151.1       155.6       4.5  
 
                                    1010       170.6       176.4       5.8  
 
                                    1000       191.9       199.8       7.9  
IMMI. 04-3117
Nariin Sukhait
Technical Report
13-15

 


Table of Contents

Table 13.2
Drill Hole Summary for
South, East, and West Fields
                                                                 
Drill Hole I   Easting   Northing   Elevation   Seam   Sub-seam   From   To   Thickness
 
                    West Field cont’d                                
 
NSW-59R
    675256.0       4762712.0       1526.0       11       1170       5.3       13.7       8.4  
 
                                    1160       16.1       18.3       2.2  
 
                                    1150       20.2       22.0       1.8  
 
                                    1140       24.6       25.5       0.9  
 
                                    1130       27.2       39.2       12.0  
 
                                    1120       43.6       46.5       2.9  
 
                                    1110       54.4       58.3       3.9  
 
                                    1100       58.8       60.2       1.4  
 
                            10       1040       142.0       144.0       2.0  
 
                                    1030       147.0       149.3       2.3  
 
                                    1020       163.3       166.7       3.4  
 
                                    1010       181.4       186.2       4.8  
 
                                    1000       187.2       196.6       9.4  
 
NSW-60R
    675267.0       4762675.0       1522.0       11       1170       13.6       34.5       20.9  
 
                                    1160       38.7       42.2       3.5  
 
                                    1150       43.2       44.5       1.3  
 
                                    1140       45.9       46.9       1.0  
 
                                    1130       51.7       66.0       14.3  
 
                                    1120       71.5       74.2       2.7  
 
                                    1110       78.6       82.1       3.5  
 
                                    1100       86.5       91.2       4.7  
 
                            10       1040       180.6       185.1       4.5  
 
                                    1030       188.6       190.4       1.8  
 
                                    1020       193.3       197.5       4.2  
IMMI. 04-3117
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ariin Sukhait
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Table of Contents

Table 13.2
Drill Hole Summary for
South, East, and West Fields
                                                                 
Drill Hole I   Easting   Northing   Elevation   Seam   Sub-seam   From   To   Thickness
 
                    West Field cont’d                                
 
NSW-61R
    675348.0       4762721.0       1517.0       11       1170       5.2       14.7       9.5  
 
                                    1130       16.4       27.2       10.8  
 
                                    1120       30.8       32.4       1.6  
 
                                    1100       36.3       39.6       3.3  
 
                            10       1020       162.0       163.9       1.9  
 
                                    1010       185.6       190.7       5.1  
 
                                    1000       191.8       206.0       14.2  
 
NSW-62R
    675153.0       4762667.0       1514.0       11       1170       24.3       34.0       9.7  
 
                                    1160       36.0       39.4       3.4  
 
                                    1150       41.2       43.2       2.0  
 
                                    1140       45.8       47.1       1.3  
 
                                    1130       54.3       70.8       16.5  
 
                                    1120       74.6       76.8       2.2  
 
                                    1110       85.8       87.4       1.6  
 
                            10       1050       145.6       146.7       1.1  
 
                                    1040       156.5       158.0       1.5  
 
                                    1030       161.3       162.5       1.2  
 
                                    1020       167.0       168.4       1.4  
 
                                    1010       178.6       182.6       4.0  
 
                                    1000       187.2       196.9       9.7  
 
NSW-63R
    675182.0       4762625.0       1513.0       11       1170       51.4       61.1       9.7  
 
                                    1160       64.4       66.6       2.2  
 
                                    1150       68.2       69.3       1.1  
 
                                    1140       70.9       71.9       1.0  
 
                                    1130       73.7       85.6       11.9  
 
                                    1120       90.1       93.0       2.9  
 
                                    1110       96.9       101.0       4.1  
 
                                    1100       101.5       102.7       1.2  
 
NSW-64R
    675724.0       4762826.0       1527.0       5               20.5       47.4       26.9  
 
NSW-65R
    675040.0       4762662.0       1518.0       11       1170       24.6       35.8       11.2  
 
                                    1160       51.4       55.0       3.6  
 
                                    1150       56.6       58.8       2.2  
 
                                    1140       60.0       62.0       2.0  
 
                                    1130       65.0       96.0       31.0  
 
                                    1120       106.4       109.4       3.0  
 
                                    1100       112.4       116.0       3.6  
 
NSW-66R
    675065.0       4762617.0       1513.0       11       1170       26.4       37.2       10.8  
 
                                    1160       38.5       42.4       3.9  
 
                                    1150       46.0       49.6       3.6  
 
                                    1140       52.6       54.0       1.4  
 
                                    1130       59.0       75.2       16.2  
 
                                    1120       81.0       82.8       1.8  
 
                                    1100       86.6       90.0       3.4  
IMMI. 04-3117
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ariin Sukhait
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Table of Contents

Table 13.2
Drill Hole Summary for
South, East, and West Fields
                                                                 
Drill Hole I   Easting   Northing   Elevation   Seam   Sub-seam   From   To   Thickness
 
                    West Field cont’d                                
 
NSW-67R
    675088.0       4732576.0       1514.0       11       1170       69.0       73.0       4.0  
 
                                    1160       74.8       76.7       1.9  
 
                                    1150       78.6       79.6       1.0  
 
                                    1130       87.2       98.5       11.3  
 
                                    1120       108.0       110.5       2.5  
 
NSW-68R
    674994.0       4762576.0       1526.0       11       1170       49.3       58.6       9.3  
 
                                    1160       66.5       70.8       4.3  
 
                                    1150       88.2       92.0       3.8  
 
                                    1130       100.0       119.4       19.4  
 
                                    1120       130.1       134.5       4.4  
 
                                    1110       144.0       146.0       2.0  
 
                                    1100       147.4       149.4       2.0  
 
NSW-70R
    675021.0       4762532.0       1519.0       11       1170       74.0       77.6       3.6  
 
                                    1160       78.8       80.4       1.6  
 
                                    1150       82.8       83.7       0.9  
 
                                    1140       89.0       90.0       1.0  
 
                                    1130       94.5       109.6       15.1  
 
                                    1120       118.4       120.4       2.0  
 
NSW-71R
    675237.0       4762520.0       1524.0       10       1000       27.4       31.4       4.0  
 
                            9       998       33.4       36.0       2.6  
 
                                    996       40.0       42.4       2.4  
 
                                    990       54.3       56.0       1.7  
 
                                    980       63.5       73.4       9.9  
 
                                    960       75.4       76.2       0.8  
 
                                    950       80.4       81.4       1.0  
 
                                    940       89.0       97.0       8.0  
 
                                    900       101.6       103.5       1.9  
 
                            8       800       107.0       111.3       4.3  
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ariin Sukhait
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Table of Contents

14   SAMPLING METHOD AND APPROACH
 
    IMMI has employed two types of drilling to investigate coal-bearing strata and collect representative samples of the coal.
 
    Core drilling has been used where it is desirable to collect complete representative samples of the coal seams, observe structural details, and to accurately measure the depths of lithologic contacts. The wireline method has been used with all core drilling in the current exploration program. Wireline core drilling produces a continuous retrieval of core for the entire drill hole. The five core holes drilled in 2004 were combination rotary/core holes. These holes were drilled using standard rotary methods to a projected target depth, then switched to a core barrel to retrieve cored sections of the No.5 seam.
 
    Core from the drill hole is logged (i.e., measured and described) by a geologist using standard geological terms to document various attributes including lithology, physical characteristics, color, hardness and grain size. Coal intervals are collected in either split or solid tube core barrels. The core is promptly logged at the drill site by a geologist. The geologist’s core log consists of the measured thickness and description of the coal, inter-seam partings, adjacent roof and floor rock, and details of any sample intervals removed for analysis. All core is then photographed at 0.5m increments.
 
    Core size was HQ (63.5mm), with a triple tube barrel system used. The innermost barrel with this system was pumped out and the tube split. The rock core was placed in boxes, photographed, logged, and then placed on the ground in sequence. The coal is logged directly from the split barrel. The geologist’s core log recorded the measured thickness and description of the coal, inter-seam partings, adjacent roof and floor rock, and details of any sample intervals removed for analysis. Each core run was measured for core cut and recovered. Photographs were taken at 0.5m intervals and the core logged.
 
    Sampling was performed according to Norwest conventions. Coal showing distinct lithologic variation was sampled separately, as were partings over 0.05 meters. Otherwise, in units of coal with a uniform appearance, samples were bagged in 0.6 meter sample increments as per the capacity of the core box length. When zones of core loss greater than 0.1 meter were encountered, separate samples were collected both above and below the zone.
 
    Coal samples were placed in polyethelene sleeves and taped shut. Each sample was assigned a discreet number, and this information and the sample depth interval was recorded in Norwest Laboratory Instruction Forms. The sample number and depth interval were written on the sample sleeves and core boxes.
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ariin Sukhait
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    Reverse circulation drilling has been used as the primary exploratory method to locate and intersect coal-bearing strata. This method allows for rapid penetration at lower drilling costs. Reverse circulation does not afford the ability to measure depths of lithologic contacts with the same level of accuracy as core drilling. With reverse circulation it is difficult to observe structural details, or geologic changes such as thin rock parting units within a coal seam. The reverse circulation drill string utilized dual wall 102mm drill pipe and a 140mm hammer. Cuttings were directed up the inner tube of the drill pipe to a cyclone. The cuttings collected inside the cyclone against a trapdoor. The door was released after every 1 meter of drilling, the samples dropped into a bucket, and the cuttings were laid out in rows on the ground. The site geologist would then examine the cuttings and produce a geologic log. Intervals with coal were sampled and sealed in plastic bags. These samples were then sent off for proximate and thermal analyses.
 
    A number of holes were drilled with a conventional air-rotary system. The drill used 114mm single wall drill pipe and a 152mm hammer bit. Cuttings with this system were directed up the anulus of the borehole and spilled on the ground surface. The drillers took notes on the types of materials encountered, and estimates of depth. No effort was made to systematically sample the cuttings, and the geophysical logs were used to determine formation depths.
 
    Following the completion of all drill holes, a down-hole geophysical logging program was conducted. The logging program produces a geophysical log suite consisting of caliper, density (gamma-gamma), natural gamma and resistivity trace. The geophysical logs are used to identify rock types, including coal intersected in the hole and to accurately measure the depths of lithologic contacts. The geophysical log is used in conjunction with the geologic log to accurately interpret and measure the coal-bearing strata as well as providing a second source of information.
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ariin Sukhait
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Table of Contents

15   SAMPLE PREPARATION, ANALYSES AND SECURITY
 
    Samples are collected from drill core and reverse circulation cuttings. Samples are collected and submitted for analysis using methods that are standard for the coal industry. The specific process used by Norwest for the Nariin Sukhait drilling program is described below:
 
    Core Drilling Samples
  1.   Recovered core is measured to determine an overall recovery (reported in percent) by comparing the recovered core length with the coring run length recorded by the driller. Recovered core is measured and compared to the coal interval thickness determined from the geophysical log suite.
 
  2.   Recovered coal intervals are sampled using the following criteria:
  i.   Coal samples were broken out based on lithologic changes. In zones of uniform coal appearance, samples were bagged about every 0.60m as per the capacity of the core boxes.
 
  ii.   In-seam partings, to a maximum thickness of 0.10m, will be included in a coal sample, where the thickness of the adjacent coal beds above and below the parting are both a minimum of twice the parting thickness.
 
  iii.   A parting will be sampled separately if it is
    >0.10m thick,
 
    Carbonaceous shale, bone or interbedded coal/mudstone
 
    Deemed to be >50% coal.
  3.   Collected samples are cleaned of any mud contamination and placed in individual, core-sleeve style, plastic bags. The bags are labelled on the outside with both the core hole and sample number and sealed with plastic tape to prevent excessive moisture loss. Samples are then placed in sequence into waxed-cardboard core boxes. Core boxes are sealed with fibreglass reinforced tape. Core boxes are then packaged on palletized containers and shipped to SGS Mineral Labs in Denver, Colorado.
 
  4.   At the time of shipment, scanned geologic and geophysical logs, laboratory instructions and shipment manifest are forwarded to Norwest’s Salt Lake City office. Laboratory instructions and the shipment manifest are forwarded to IMMI in Ulaanbaatar, and to SGS in Denver. All records are compared with contents upon arrival to the SGS Mineral Labs in Denver. To date, there has been no loss or compromise of samples during shipment. Core samples undergo a full suite of coal quality testing including short proximate, full proximate, thermal tests, ash analysis, washability testing, and metallurgical testing.
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ariin Sukhait
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    Reverse Circulation Samples
 
    Samples are collected at 1.0m intervals into plastic bags. The bags are labelled on the outside with both the drill hole and sample number and sealed with plastic tape to prevent excessive moisture loss. Samples are then grouped by hole into larger bags, packaged onto palletized containers and shipped to the Mining Institute in Ulaanbaatar, Mongolia where they undergo proximate and thermal analysis.
 
    In coal work additional special security methods for the shipping and storage of samples are not commonly employed, as coal is a relatively low-value bulk commodity.
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ariin Sukhait
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16   DATA VERIFICATION
 
    Data control and verification is an important element in Norwest’s management of the exploration program at Nariin Sukhait. Norwest has directly managed the exploration program from conceptual planning of exploration targets, through data collection, to interpretation and analysis. Norwest has provided on-site management throughout the great majority of the exploration project with only very short periods of absence.
 
    Upon completion of a drill hole, the geologic and geophysical logs are reviewed by a Norwest geologist. Following review of the logs, the hardcopy originals are scanned into an electronic format. All geologic, geophysical, and sampling data is entered and maintained in an electronic database. All mapping is entered and maintained in electronic format on a CAD-based system. Data entry of all geologic data is managed by Norwest at the project site. All electronic data is forwarded on a routine basis to Norwest’s office in Salt Lake City. Results from the coal quality testing is added into the database in the Salt Lake office.
 
    All data collection is done under a defined set of protocols established by Norwest. Norwest geologists are responsible for the training and administration of data collection procedures and are responsible for reviewing all data. Norwest has maintained control of all data collection throughout the exploration program.
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ariin Sukhait
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17   ADJACENT PROPERTIES
 
    Ivanhoe’s Nariin Sukhait Property surrounds and is adjacent to the MAK Nariin Sukhait Mine, owned and operated by the Mak — Qin Hua Mongolian/Chinese Joint Venture. Operations began at the Nariin Sukhait Mine in 2003. The operation currently mines coal from the No. 5 Seam from two open-pit mines. Annual production is estimated to be approximately 2M tpy of both thermal and coking blend coal, which is trucked to a Chinese steel mill some 400km away. Reported reserves for the MAK operation are stated as 125.5 Mt. of coal. Information regarding the MAK operation has been provided by Ivanhoe to Norwest . Norwest has been unable to verify this information and the information is not necessarily indicative of the coal resource potential on the IMMI controlled licenses.
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ariin Sukhait
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18   MINERAL PROCESSING AND METALLURGICAL TESTING
 
    The equivalent terminology, which will be used in this report on coal at Nariin Sukhait, is “Coal Quality and Processing”. Core samples were subjected to a number of analyses, with the most common analyses described below:
    Proximate Analysis: Determination of moisture, ash, volatile matter and fixed carbon in a sample. The fixed carbon is determined by difference and the four components total 100%.
 
    Sulphur: Determination of the percent sulphur in a sample. Coal seams at Nariin Sukhait have low sulphur contents ranging from 0.73 to 1.37%.
 
    Thermal Value: A measure of the heat producing capability of coal measured in Kcal/kg or BTU/lb. Thermal content for coals at Nariin Sukhait (as-received basis) range from approximately 5,800 to 7,000 Kcal/kg.
 
    Washability Tests: A series of tests to determine the proximate and thermal qualities of coal after being washed at set specific gravities to remove ash, sulphur, and non-coal constituents. Tests are designed to simulate preparation plant throughput at set specific gravities to determine expected yields and quality of a saleable product.
 
    Metallurgical Testing: A series of tests to evaluate the coking characteristics of coal. Tests include the Gieseler Plastometer, Audibert — Arnu Dilatometer, Reactive Maceral Analysis, Phosphorous content (P%), and Free Swelling Index (FSI).
18.1   Raw Coal Quality
 
  At Nariin Sukhait the coals are ranked as high volatile bituminous. Short proximate analysis (moisture, ash, sulphur, and caloricity) has been completed on all core and numerous reverse circulation drill holes. Core holes with coal quality data are highlighted on Figures 18.1 and 18.2. Full proximate analyses, thermal, washability and metallurgical testing have been completed for 21% of the core samples. All core samples from the 2005 exploration program have been tested at SGS Mineral Labs in Denver, Colorado.
 
  Raw coal quality results for the South Field are presented in Table 18.1 on a full-seam composite basis. Average qualities for the No. 5 Seam are 12.3% Ash, 1.2% Sulphur, and a heat content of 6,391 Kcal/kg. Similar results are seen in drill holes completed in 2004 and are presented in Table 18.2.
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ariin Sukhait
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Table 18.1
Raw Coal Quality, South Field, No. 5 Seam
                                                         
            As Received Quality Basis    
    Thick   Moisture   Ash   Sulfur            
Hole Id   (m)   (%)   (%)   (%)   Kcal/kg   BTU/lb   MAFBTU
NS-29
    53.5       10.67       10.51       0.85       6,395       11,510       14,566  
NS-16
    22.6       13.40       15.17       0.84       5,751       10,350       14,480  
NS-18
    125.9       9.92       14.37       1.25       6,155       11,076       14,612  
NS-23
    61.3       6.21       9.84       1.66       6,820       12,273       14,613  
NS-22
    56.3       6.70       10.75       1.29       6,706       12,068       14,611  
 
                                                       
Wtd. Avg.
    63.9       9.01       12.27       1.24       6,391       11,502       14,595  
 
                                                       
Table 18.2
*2004 Raw Coal Quality, South Field, No. 5 Seam
                                                                 
            AR Basis   Air Dry Basis
    Thick   Moisture   Ash                   Moisture   Volatiles   Sulfur
Hole Id   (m)   (%)   (%)   Kcal/kg   BTU/lb   (%)   (%)   (%)
H-1
    74.1       5.23       13.04       6,438       11,586       1.12       34.85       1.02  
H-2
    34.0       3.58       16.31       6,273       11,290       0.81       34.75       0.53  
H-3
    51.4       2.17       10.08       6,972       12,547       1.02       33.61       0.59  
H-4
    42.3       5.73       8.93       6,760       12,165       1.14       30.94       1.19  
H-5
    40.1       6.87       7.80       6,753       12,152       0.91       34.03       0.58  
 
                                                               
Wtd. Avg.
    48.4       4.72       11.23       6,639       11,948       1.00       33.64       0.78  
 
                                                               
A summary of coal quality for the upper seams (Nos. 8, 9, and 10) in the East Field is presented is presented in Table 18.3. The upper seams exhibit higher ash, lower sulphur, and lower heating content than seen in the No. 5 Seam. Ash values range from 13.2 to 27.3% in the upper seams, reflecting the multiple benches and in-seam dilution of thin rock partings. Likewise, heating content in the upper seams has a lower average heating content of 5,831 Kcal/kg.
Table 18.3
Raw Coal Quality, East Field, Upper Seams
                                                         
            As Received Quality Basis    
    Thick   Moisture   Ash   Sulfur            
Hole Id   (m)   (%)   (%)   (%)   Kcal/kg   BTU/lb   MAFBTU
NS-09
    15.8       12.34       19.53       0.58       5,493       9,886       14,486  
NS-12
    3.3       17.21       17.62       0.67       5,137       9,244       14,184  
NS-13
    4.8       10.54       13.22       0.60       6,095       10,968       14,385  
NS-14
    8.9       21.94       27.31       0.41       3,726       6,705       13,168  
NS-32
    26.3       8.01       14.92       1.28       6,114       11,002       14,176  
NS-33
    10.0       5.76       20.06       0.76       5,851       10,530       14,056  
NS-34
    51.4       8.19       15.87       0.98       6,013       10,822       14,160  
NS-35
    24.5       9.53       13.77       1.38       6,159       11,084       14,442  
 
                                                       
Wtd. Avg.
    18.1       9.79       16.68       0.99       5,831       10,494       14,186  
 
                                                       
 
IMMI. 04-3117
Nariin Sukhait
Technical Report
18-2

 


Table of Contents

A summary of raw coal quality for the No. 5 Seam in the West Field is presented in Table 18.4. Ash content for No. 5 Seam coal in the West Field is significantly lower from other coals at Nariin Sukhait. Ash content ranges from 6.1 to 11.1%, averaging 7.3%. Likewise sulphur content, averaging 0.73%, is significantly lower than other coals tested to date at Nariin Sukhait. Heating content is significantly improved at an average value of 7,003 Kcal/kg compared to the average heating values for No. 5 Seam coals in the South Field.
Table 18.4
Raw Coal Quality, West Field, No. 5 Seam
                                                         
            As Received Quality Basis    
    Thick   Moisture   Ash   Sulfur            
Hole Id   (m)   (%)   (%)   (%)   Kcal/kg   BTU/lb   MAFBTU
NSW-37
    66.5       6.35       7.39       0.90       6,927       12,466       14,446  
NSW-36
    17.5       4.90       7.90       0.82       7,037       12,663       14,520  
NSW-35
    107.8       5.36       6.13       0.59       7,222       12,997       14,682  
NSW-38
    30.9       9.66       11.13       0.81       6,388       11,496       14,499  
 
                                                       
Wtd. Avg.
    55.7       6.22       7.34       0.73       7,003       12,604       14,574  
 
                                                       
A summary of the upper seam coals for the West Field is presented in Table 18.5. The upper seam coals in the West Field have ash values comparable to the upper seams in the East Field. Sulphur content is higher in the West Field at 1.37% compared to 1.0% sulphur for upper seams in the East Field. Heating values for the upper seams are significantly higher compared to the East Field at 6,266 Kcal/kg, an increase of approximately 400 Kcal/kg.
Table 18.5
Raw Coal Quality, West Field, Upper Seams
                                                         
            As Received Quality Basis    
            Moisture   Ash   Sulfur            
Hole Id   Thick (m)   (%)   (%)   (%)   Kcal/kg   BTU/lb   MAFBTU
NSW-40
    50.5       5.85       16.62       1.53       6,242       11,233       14,477  
NSW-41
    49.9       5.68       20.01       1.24       5,960       10,726       14,288  
NSW-44
    31.0       7.30       14.58       1.52       6,262       11,270       14,413  
NSW-50
    65.1       5.21       14.19       0.99       6,578       11,838       14,667  
NSW-55
    60.4       5.61       16.63       1.42       6,244       11,238       14,420  
NSW-56
    55.1       6.22       16.00       1.54       6,252       11,251       14,445  
NSW-57
    37.8       6.26       16.23       1.50       6,219       11,193       14,424  
 
                                                       
Wtd. Avg.
    50.0       5.90       16.34       1.37       6,266       11,276       14,459  
 
                                                       
Proximate analyses of cuttings from 15 reverse circulation holes have been performed by the Mining Institute in Ulaanbaatar and are presented in Table 18.6. The nature and method of collecting coal samples from reverse circulation drilling typically results in a lower quality sample. Cuttings typically are subjected to moisture loss and out-of-seam dilution.
 
IMMI. 04-3117
Nariin Sukhait
Technical Report
18-3

 


Table of Contents

Table 18.6
Nariin Sukhait Property
Raw Coal Quality — Reverse Circulation Drilling
                                                                                                 
                                            PROXIMATE ANALYSIS    
                                            Wetness   Wetness   Ash   Volatility   Sulfur   Caloricity   SPECIFIC
Hole #   From   To   Thickness   Seam #   Sub-seam #   AP   ADB   DB   ADB   ADB   POB   GRAVITY
NS -21
    147.0       153.3       6.3       5       5       17.80       1.00       9.90       37.10       0.99       5505       0.90  
    154.5       164.3       9.8       5       5       14.20       1.00       12.80       35.70       1.03       5666       1.04  
 
NS -24
    62.7       64.9       2.2       10       1010       10.90       1.10       12.40       38.00       0.95       6116       1.25  
 
    64.9       70.4       5.5       10       10       14.90       1.20       11.40       36.10       0.65       5807       1.07  
    99.8       102.9       3.1       9       9       5.70       0.70       29.00       31.40       0.35       6169       0.89  
 
    103.1       107.2       4.1       9       9       13.80       1.00       14.90       33.60       0.40       5589       1.09  
 
NS-30R
    18.0       20.0       2.0       8       8       7.00       1.20       20.20       38.60       0.53       5684       1.29  
 
NSW-19R
    82.0       96.0       14.0       10       10       3.90       1.70       18.60       40.30       1.15       5960       1.26  
 
    135.0       137.0       2.0       9       990       2.80       1.80       11.80       38.30       1.05       6732       1.21  
    164.0       180.0       16.0       9       950       3.90       1.70       16.50       38.40       1.18       6267       1.22  
 
    184.0       210.0       26.0       9       940       2.80       1.50       15.70       38.70       1.09       6253       1.27  
 
 
    17.0       26.0       9.0       10       1030       5.40       1.90       42.00       49.50       1.24       3626       1.66  
 
    36.0       40.0       4.0       10       1020       5.10       2.00       32.90       43.80       0.93       4455       1.47  
 
    43.0       53.0       10.0       10       10       3.80       2.00       24.70       41.90       0.81       5477       1.38  
 
    59.0       60.0       1.0       9       998       3.90       1.80       44.40       46.60       0.95       3464       1.64  
 
    63.0       67.0       4.0       9       996       3.70       1.70       27.60       34.30       1.28       5060       1.19  
 
    93.0       94.0       1.0       9       990       3.20       1.80       19.30       36.80       1.47       5842       1.29  
NSW-20R
    98.0       107.0       9.0       9       980       3.80       1.90       12.50       40.10       1.98       6272       1.30  
 
    113.0       114.0       1.0       9       970       3.00       1.70       17.00       40.40       1.63       6078       1.28  
 
    116.0       118.0       2.0       9       960       3.70       1.70       13.10       39.80       1.48       6365       1.26  
 
    123.0       124.0       1.0       9       950       4.90       1.90       15.40       38.30       1.84       6023       1.28  
 
    132.0       144.0       12.0       9       940       3.50       1.90       9.50       39.80       1.36       6826       1.09  
 
    153.0       156.0       3.0       9       9       3.20       1.80       21.50       38.80       1.32       5579       1.32  
 
    172.0       179.0       7.0       8       8       5.40       1.80       10.30       37.70       1.53       6568       1.23  
 
 
    57.0       60.0       3.0       10       1030       3.20       1.10       52.40       48.90       1.32       3070       1.78  
 
    63.0       72.0       9.0       10       10       3.20       1.40       29.00       40.80       1.12       5018       1.51  
NSW-24
    101.0       107.0       6.0       9       980       4.40       1.60       16.10       39.00       1.44       6026       1.36  
 
    109.0       112.0       3.0       9       970       3.20       1.60       16.20       39.30       2.04       6102       1.11  
 
    112.0       113.0       1.0       9       960       2.90       0.90       28.60       43.30       1.37       5071       1.51  
 
 
    11.0       14.0       3.0       11       11       5.20       1.80       53.40       46.20       0.73       2816       1.68  
 
    58.0       59.0       1.0       10       1030       3.80       2.00       32.80       42.60       1.20       5096       1.46  
 
    72.0       75.0       3.0       10       10       2.90       1.60       32.70       43.30       0.88       5026       1.52  
 
    75.0       78.0       3.0       10       10       2.80       1.70       30.80       43.60       0.64       4850       1.20  
NSW-25R
    84.0       86.0       2.0       9       998       3.50       1.50       40.90       45.90       0.85       3871       1.48  
 
    89.0       94.0       5.0       9       996       3.50       1.60       18.00       41.50       1.19       5905       1.31  
 
    122.0       127.0       5.0       9       980       4.70       1.80       18.30       39.30       1.37       5790       1.29  
 
    129.0       136.0       7.0       9       970       3.60       1.80       15.10       38.50       0.15       6369       1.33  
 
IMMI. 04-3117
Nariin Sukhait
Technical Report
18-4

 


Table of Contents

Table 18.6
Nariin Sukhait Property
Raw Coal Quality — Reverse Circulation Drilling
                                                                                                 
                                            PROXIMATE ANALYSIS    
                                            Wetness   Wetness   Ash   Volatility   Sulfur   Caloricity   SPECIFIC
Hole #   From   To   Thickness   Seam #   Sub-seam #   AP   ADB   DB   ADB   ADB   POB   GRAVITY
 
    42.0       46.0       4.0       10       1040       4.40       1.80       17.30       42.30       1.23       5781       1.35  
NSW-26R
    54.0       55.0       1.0       10       1030       7.90       1.50       30.30       45.90       2.12       4193       1.45  
 
 
    15.0       20.0       5.0       10       1050       5.40       1.60       40.70       42.60       1.23       3767       1.61  
 
    26.0       29.0       3.0       10       1040       4.30       1.70       41.00       44.30       1.10       3903       1.33  
 
    31.0       33.0       2.0       10       1030       5.20       2.00       39.60       42.90       1.43       3928       1.51  
 
    34.0       38.0       4.0       10       1030       5.90       2.10       25.70       41.70       0.63       4954       1.45  
 
    65.0       66.0       1.0       10       1020       3.70       1.70       55.70       55.30       1.06       2771       1.62  
 
    69.0       74.0       5.0       10       10       6.30       1.90       24.00       42.00       0.95       5214       1.40  
NSW-28R
    74.0       76.0       2.0       10       10       6.80       1.90       21.30       39.50       1.18       5416       1.36  
 
    79.0       82.0       3.0       9       998       6.00       2.00       12.20       37.90       1.04       6264       1.10  
 
    88.0       89.0       1.0       9       996       3.50       1.90       22.90       43.80       1.49       5594       1.29  
 
    93.0       94.0       1.0       9       990       5.20       1.90       23.00       40.20       1.33       5471       1.37  
 
    102.0       111.0       9.0       9       980       4.00       2.00       12.20       39.60       1.08       6487       1.26  
 
    111.0       115.0       4.0       9       980       3.90       2.00       12.10       39.00       1.07       6536       1.24  
 
 
    3.0       4.0       1.0       10       1030       23.20       6.00       27.40       44.20       0.48       2728.0       1.52  
 
    5.0       8.0       3.0       10       1030       6.00       2.70       17.60       40.00       0.52       5931       1.13  
 
    31.0       32.0       1.0       10       1020       3.40       2.20       14.70       42.10       1.29       6243       1.23  
 
    44.0       53.0       9.0       10       10       4.20       2.20       12.10       38.00       1.32       6416       1.24  
 
    55.0       58.0       3.0       9       998       3.70       2.20       13.00       39.30       1.11       6284       1.28  
NSW-29R
    65.0       69.0       4.0       9       996       4.20       2.20       9.20       38.30       1.05       6731       1.23  
 
    84.0       90.0       6.0       9       980       3.90       2.00       7.90       38.90       0.75       6783       1.18  
 
    92.0       96.0       4.0       9       970       3.60       2.00       11.40       37.70       1.25       6519       1.09  
 
    102.0       104.0       2.0       9       960       4.20       2.30       6.40       34.80       1.03       7068       1.23  
 
    106.0       107.0       1.0       9       950       3.20       1.80       26.40       38.40       0.97       5415       1.32  
 
    114.0       115.0       1.0       9       942       3.80       2.00       15.80       39.40       1.25       6304       1.33  
 
 
    20.0       40.0       20.0       11       11       5.10       1.90       27.40       42.00       1.04       4906       1.39  
 
    67.0       68.0       1.0       10       1040       3.70       2.00       16.80       36.80       0.67       6060       1.10  
 
    72.0       76.0       4.0       10       1030       3.20       1.60       22.30       40.10       0.59       5447       1.32  
 
    76.0       82.0       6.0       10       1030       3.50       1.80       11.30       39.50       0.67       6544       1.20  
NSW-31R
    84.0       87.0       3.0       10       1020       2.90       1.60       27.80       41.00       0.51       5167       1.33  
 
    87.0       91.0       4.0       10       1020       3.30       1.90       15.70       41.10       0.80       6099       1.29  
 
    91.0       94.0       3.0       10       1010       3.10       1.70       19.50       42.50       1.01       5827       1.37  
 
    95.0       101.0       6.0       10       10       4.30       1.60       14.10       39.10       0.78       6192       1.11  
 
    140.0       143.0       3.0       9       990       3.20       1.50       25.40       39.20       0.83       5688       1.34  
 
IMMI. 04-3117
Nariin Sukhait
Technical Report
18-5

 


Table of Contents

Table 18.6
Nariin Sukhait Property
Raw Coal Quality — Reverse Circulation Drilling
                                                                                                 
                                            PROXIMATE ANALYSIS    
                                            Wetness   Wetness   Ash   Volatility   Sulfur   Caloricity   SPECIFIC
Hole #   From   To   Thickness   Seam #   Sub-seam #   AP   ADB   DB   ADB   ADB   POB   GRAVITY
 
    150.0       152.0       2.0       9       980       3.30       1.40       21.80       35.60       1.36       5782       1.37  
 
    156.0       160.0       4.0       9       970       2.80       1.60       20.20       38.60       0.97       5890       1.31  
 
    163.0       168.0       5.0       9       960       4.60       1.60       12.30       36.50       1.19       6422       1.07  
NSW-31R
    174.0       177.0       3.0       9       950       5.20       1.40       17.20       38.40       1.03       6217       1.26  
 
    180.0       182.0       2.0       9       950       2.60       1.30       22.70       38.60       0.53       5919       1.25  
 
    186.0       188.0       2.0       9       942       3.60       1.30       40.90       40.20       0.81       4529       1.43  
 
    192.0       201.0       9.0       9       940       3.90       1.70       11.70       38.20       0.37       6523       1.27  
 
 
    16.0       17.0       1.0       10       1040       3.30       1.20       48.40       56.30       0.57       2980       1.87  
 
    48.0       52.0       4.0       10       1030       4.40       1.80       23.10       41.00       0.51       5349       1.41  
 
    56.0       62.0       6.0       10       1030       3.50       1.80       33.70       42.90       0.71       4634       1.25  
 
    69.0       74.0       5.0       10       1020       3.50       1.70       34.40       42.90       0.86       4646       1.49  
 
    76.0       83.0       7.0       10       10       4.10       2.00       14.60       39.40       1.10       6332       1.32  
 
    114.0       120.0       6.0       9       980       3.50       1.80       11.80       38.00       1.26       6588       1.28  
NSW-32R
    124.0       142.0       18.0       9       960       3.40       1.80       18.20       38.60       0.80       6214       1.11  
 
    150.0       155.0       5.0       9       940       4.90       1.80       23.80       40.10       1.22       5362       1.45  
 
    156.0       165.0       9.0       9       940       3.30       1.80       11.30       37.90       1.09       6608       1.33  
 
    165.0       170.0       5.0       9       940       2.90       1.90       9.90       38.20       1.10       6822       1.27  
 
    180.0       188.0       8.0       8       8       2.60       1.70       19.80       38.70       1.22       5943       1.39  
 
    189.0       192.0       3.0       7       7       2.20       1.40       28.80       40.00       0.69       5193       1.38  
 
 
    19.0       21.0       2.0       9       990       5.70       1.90       27.80       39.00       1.26       4999       1.40  
 
    24.0       30.0       6.0       9       980       6.50       2.00       10.60       38.80       0.97       6267       1.11  
NSW-33R
    30.0       41.0       11.0       9       970       4.50       1.70       22.80       40.70       1.01       5519       1.34  
 
    48.0       62.0       14.0       9       940       3.90       1.90       13.10       34.60       1.09       6563       1.20  
 
    83.0       88.0       5.0       8       8       4.30       1.80       16.90       37.50       1.16       6263       1.28  
 
 
    6.0       8.0       2.0       10       10       9.50       4.40       13.00       36.90       1.05       5940       1.17  
 
    54.0       55.0       1.0       9       990       4.80       2.20       5.90       39.60       0.71       6897       1.28  
 
    70.0       74.0       4.0       9       980       2.60       2.10       10.30       38.70       0.71       6634       1.29  
NSW-34R
    81.0       84.0       3.0       9       980       3.80       1.90       20.50       40.40       0.48       5748       1.16  
 
    87.0       90.0       3.0       9       980       4.00       1.90       7.50       37.90       1.00       6821       1.42  
 
    113.0       136.0       23.0       9       940       4.30       1.60       22.60       46.40       0.65       5360       1.23  
 
 
    36.0       41.0       5.0       10       1030       3.42       1.81       9.62       39.64       0.48       6765       1.11  
 
    41.0       45.0       4.0       10       1030       6.75       1.71       16.57       41.76       0.41       5925       1.26  
 
    46.0       47.0       1.0       10       1030       2.74       1.56       23.61       47.02       0.77       5414       1.38  
 
    48.0       54.0       6.0       10       1030       3.06       1.76       16.62       39.62       0.34       6252       1.35  
NSW-47R
    54.0       60.0       6.0       10       1030       3.16       1.75       17.09       39.92       0.78       6181       1.28  
 
    63.0       69.0       6.0       10       1020       4.23       1.55       20.74       41.89       0.78       5835       1.31  
 
    70.0       72.0       2.0       10       1010       3.21       1.65       11.67       41.31       0.81       6806       1.25  
 
    72.0       76.0       4.0       10       1010       2.87       1.61       39.92       44.07       0.38       4418       1.52  
 
IMMI. 04-3117
Nariin Sukhait
Technical Report
18-6

 


Table of Contents

Table 18.6
Nariin Sukhait Property
Raw Coal Quality — Reverse Circulation Drilling
                                                                                                 
                                            PROXIMATE ANALYSIS    
                                            Wetness   Wetness   Ash   Volatility   Sulfur   Caloricity   SPECIFIC
Hole #   From   To   Thickness   Seam #   Sub-seam #   AP   ADB   DB   ADB   ADB   POB   GRAVITY
 
    78.0       81.0       3.0       10       10       4.46       1.67       19.84       40.37       1.01       5906       1.09  
 
    81.0       89.0       8.0       10       10       5.14       1.60       15.73       40.44       0.77       6278       1.29  
 
    89.0       92.0       3.0       10       10       8.26       1.78       10.89       40.64       0.68       6336       1.26  
 
    126.0       131.0       5.0       9       990       2.93       1.63       9.65       37.11       1.15       6862       1.19  
 
    138.0       141.0       3.0       9       980       2.50       1.33       23.52       41.69       0.65       5734       1.34  
 
    142.0       147.0       5.0       9       980       3.18       1.49       7.31       35.28       1.22       7092       1.24  
 
    147.0       155.0       8.0       9       970       3.09       1.44       10.15       38.94       0.79       6860       1.25  
 
    156.0       162.0       6.0       9       960       2.70       1.70       7.82       37.33       0.89       7247       1.19  
 
    163.0       166.0       3.0       9       950       2.61       1.51       15.94       40.37       0.65       6465       1.13  
NSW-47R
    168.0       169.0       1.0       9       950       5.65       1.44       20.18       43.91       0.72       5854       1.02  
 
    172.0       175.0       3.0       9       942       4.13       1.62       16.33       40.25       0.55       6275       1.14  
 
    175.0       184.0       9.0       9       940       2.86       1.65       7.41       37.43       1.67       7087       1.24  
 
    184.0       186.0       2.0       9       940       2.39       1.59       11.13       37.90       0.57       6998       1.15  
 
    186.0       190.0       4.0       9       940       2.64       2.12       7.38       36.12       0.58       7176       1.32  
 
    190.0       195.0       5.0       9       940       3.38       1.90       8.04       39.11       0.52       7245       1.26  
 
    202.0       203.0       1.0       9       9       2.32       2.02       19.48       37.58       0.47       6166       1.30  
 
    205.0       208.0       3.0       8       810       2.35       1.60       27.17       37.18       0.65       5418       1.31  
 
    210.0       212.0       2.0       8       810       3.34       1.53       20.42       38.70       0.41       5927       1.11  
 
    220.0       225.0       5.0       8       8       2.47       1.39       30.43       38.97       0.90       5254       1.38  
 
IMMI. 04-3117
Nariin Sukhait
Technical Report
18-7

 


Table of Contents

    For this reason, quality results from reverse circulation drilling have not been incorporated with the quality analyses from core drilling. These reverse circulation data are collected and tested primarily to be used as a guide in a reconnaissance program, to target areas for core drilling.
 
18.2   Optimized Qualities
 
    In a likely mining scenario, portions of the coal seams may be selectively mined to achieve an improved overall coal product. Table 18.7 presents coal quality of core hole data, optimized to a logical mineable horizon to improve coal quality characteristics.
 
    The optimized quality presented in Table 18.7 demonstrates that potential improvements can be realized on the upper seams by selective mining that will yield a high quality thermal coal. Several drill hole intercepts in the No. 5 Seam display low ash, low sulphur, and high caloric content that may be suitable for coking coal.
 
18.3   Washability and Metallurgical Testing
 
    To date, washability and metallurgical tests have been completed for samples from eight core holes. Washability results are presented in Table 18.8. Based on the initial tests, upper seam coals show significant improvements with decreased ash content, decreased sulphur content and increased heating values at specific gravities of 1.4 and 1.5 g/cm3 with product yields in the range 65 to 70%.
 
    Metallurgical tests and rank calculations are presented in Tables 18.9 and 18.10. For comparison, a grab sample collected from the MAK East Pit, NS-BS-01, is presented with the core hole samples. Initial metallurgical tests are disappointing in that only one sample, NS-13, exhibits characteristics that may be suitable for coke. These results are influenced by sample composite intervals being selected before proximate and thermal characteristics had been determined. Ash content on the 1.4 float fraction is excessive in all but one sample (NS-BS-1), ranging from approximately 9.7 to 17.6%. The Free Swelling Index numbers vary from 1 to 2 with the core hole samples, with the exception of NS-13 that has a FSI index of 7.5. Rank calculations show all the samples with the exception of NS-14 to be high volatile bituminous coal. NS-14 represents a sample interval located close to the surface and is largely affected by oxidation.
 
    In addition to the above described metallurgical testing that was conducted on composite intervals, several incremental samples were tested for FSI. Data from these tests are presented as graphs in the following Figures 18.3 and 18.4. Though these data are not definitive, the higher values in the 5 Seam South Field do represent the potential for identifying some coal benches with coking properties.
 
    There are currently samples from 23 core holes still undergoing washability and metallurgical tests.
 
IMMI. 04-3117
Nariin Sukhait
Technical Report
18-8

 


Table of Contents

Table 18.7
Nariin Sukhait Property,Mongolia
Optimized Coal Quality
                                                                                 
            In-Place                                                   MMF*   MAF**
Drill Hole   Seam   Optimized   Thickness   Moisture   Ash   Sulfur   Kcal/kg   ASG   Kcal/kg   Kcal/kg
NS-09
    10     In-Place     6.20       12.93       20.38       0.66       5360       1.42       6711       8023  
 
          Optimized     4.00       13.57       13.42       0.68       5923       1.36       6834       8108  
 
                                                                               
NS-09
    9     In-Place     6.30       11.26       20.71       0.45       5418       1.46       6818       7947  
 
          Optimized     4.40       11.89       17.83       0.45       5760       1.42       7008       8194  
 
                                                                               
NS-09
    8     In-Place     3.50       12.98       17.44       0.64       5738       1.42       6951       8247  
 
          Optimized     3.50       12.98       17.44       0.64       5738       1.42       6951       8247  
 
                                                                               
NS-12
    10     In-Place     3.30       17.21       17.62       0.67       5140       1.41       6239       7886  
 
          Optimized     3.30       17.21       17.62       0.67       5140       1.41       6239       7886  
 
                                                                               
NS-14
    9     In-Place     11.85       21.81       27.04       0.43       3773       1.49       5157       7353  
 
          Optimized     8.95       21.09       25.61       0.51       4006       1.47       5383       7510  
 
                                                                               
NS-16
    5     In-Place     24.10       12.76       19.80       1.10       5372       1.43       6545       7788  
 
          Optimized     22.90       13.33       15.39       0.83       5740       1.38       6783       8047  
 
                                                                               
NS-18
    5     In-Place     128.60       9.86       15.04       1.32       6100       1.38       7155       8101  
 
          Optimized     116.50       9.96       12.95       1.26       6281       1.36       7206       8140  
 
                                                                               
NS-21
    5     In-Place     16.10       15.49       9.97       0.87       4789       0.99       5323       6295  
 
          Optimized     16.10       15.49       9.97       0.87       4789       0.99       5323       6295  
 
                                                                               
NS-22
    5     In-Place     61.65       6.85       11.15       1.29       6662       1.37       7489       8120  
 
          Optimized     48.03       6.83       9.26       1.08       6826       1.35       7517       8132  
 
                                                                               
NS-23
    5     In-Place     84.10       6.78       14.58       1.83       6311       1.53       7288       7935  
 
          Optimized     66.70       6.48       9.03       1.55       6873       1.36       7554       8134  
 
                                                                               
NS-29
    5     In-Place     60.35       10.82       10.64       0.85       6372       1.41       7105       8015  
 
          Optimized     56.60       10.68       9.45       0.85       6493       1.41       7163       8002  
 
                                                                               
NS-32
    5     In-Place     28.35       7.86       18.50       1.23       5820       1.44       6956       7733  
 
          Optimized     24.55       8.27       12.36       1.21       6321       1.38       7213       7963  
 
                                                                               
NS-33
    9     In-Place     6.90       6.85       20.71       0.63       5753       1.42       7127       7824  
 
          Optimized     2.35       7.78       9.22       0.50       6707       1.35       7383       8077  
 
                                                                               
NS-33
    8     In-Place     4.80       4.72       19.81       0.83       5919       1.47       7367       7821  
 
          Optimized     3.60       5.26       13.57       0.88       6434       1.41       7447       7926  
 
                                                                               
NS-34
    9     In-Place     57.60       8.36       20.33       0.94       5640       1.44       6988       7828  
 
          Optimized     38.05       8.48       11.31       0.84       6420       1.36       7239       8004  
 
                                                                               
NS-34
    10     In-Place     6.30       5.15       19.37       1.54       5807       1.47       7205       7693  
 
          Optimized     5.40       5.48       17.54       1.64       5924       1.45       7185       7696  
 
                                                                               
NS-35
    10     In-Place     27.27       9.59       14.27       1.37       6110       1.38       7128       8021  
 
          Optimized     19.70       10.26       11.55       1.48       6315       1.36       7138       8077  
 
                                                                               
NSW-35
    5     In-Place     112.30       5.41       6.17       0.59       7218       1.33       7693       8162  
 
          Optimized     110.60       5.45       6.08       0.59       7223       1.33       7691       8164  
 
                                                                               
NSW-36
    8     In-Place     18.05       4.82       8.18       0.81       7022       1.35       7644       8069  
 
          Optimized     17.95       4.83       7.88       0.81       7046       1.35       7647       8072  
 
IMMI. 04-3117
Nariin Sukhait
Technical Report
18-9

 


Table of Contents

Table 18.7
Nariin Sukhait Property,Mongolia
Optimized Coal Quality
                                                                                 
            In-Place                                                   MMF*   MAF**
Drill Hole   Seam   Optimized   Thickness   Moisture   Ash   Sulfur   Kcal/kg   ASG   Kcal/kg   Kcal/kg
NSW-37
    5     In-Place     66.60       6.37       7.49       0.91       6919       1.34       7475       8029  
 
          Optimized     61.15       6.27       6.65       0.85       6993       1.33       7489       8028  
 
                                                                               
NSW-38
    5     In-Place     35.50       9.60       11.98       0.84       6322       1.36       7171       8052  
 
          Optimized     29.60       9.99       8.23       0.70       6622       1.33       7215       8096  
 
                                                                               
NSW-40
    8     In-Place     9.10       4.48       22.44       1.16       5912       1.47       7615       8083  
 
          Optimized     6.10       4.41       22.05       1.26       5964       1.48       7641       8102  
 
                                                                               
NSW-40
    9     In-Place     28.50       4.90       16.31       1.57       6372       1.41       7607       8079  
 
          Optimized     21.30       5.39       12.82       1.63       6636       1.29       7610       8109  
 
                                                                               
NSW-40
    10     In-Place     15.25       8.36       15.38       1.64       6071       1.37       7169       7957  
 
          Optimized     12.70       8.04       14.00       1.62       6226       1.36       7240       7985  
 
                                                                               
NSW-41
    9     In-Place     34.40       5.05       20.36       1.35       8016       1.44       10355       7859  
 
          Optimized     20.05       5.50       11.32       1.48       8205       1.35       9269       7842  
 
                                                                               
NSW-41
    10     In-Place     20.90       7.16       34.01       0.88       7278       1.58       11895       7872  
 
          Optimized     9.00       5.70       12.53       0.83       8055       1.36       9247       7834  
 
                                                                               
NSW-44
    11     In-Place     31.40       7.30       14.81       1.52       6202       1.39       7323       6245  
 
          Optimized     25.20       7.36       12.25       1.47       6248       1.38       7137       6468  
 
                                                                               
NSW-50
    8     In-Place     3.30       5.54       19.65       1.17       6193       1.44       7704       8277  
 
          Optimized     0.60       4.44       12.91       1.53       6828       1.34       7840       8261  
 
                                                                               
NSW-50
    9     In-Place     41.50       4.79       13.45       0.91       6680       1.37       7699       8152  
 
          Optimized     33.30       4.86       10.13       0.91       6996       1.33       7778       8225  
 
                                                                               
NSW-50
    10     In-Place     20.80       6.00       16.40       1.10       6291       1.40       7510       8100  
 
          Optimized     16.50       5.82       12.70       1.15       6623       1.36       7581       8125  
 
                                                                               
NSW-55
    9     In-Place     27.80       4.97       17.32       1.46       6258       1.41       7539       8031  
 
          Optimized     16.50       4.80       11.80       1.43       6772       1.36       7677       8119  
 
                                                                               
NSW-55
    10     In-Place     21.00       6.27       20.09       1.49       5814       1.46       7257       7882  
 
          Optimized     12.60       5.99       14.81       1.43       6306       1.42       7397       7958  
 
                                                                               
NSW-56
    9     In-Place     49.95       5.94       15.80       1.59       6300       1.40       7468       8041  
 
          Optimized     41.70       5.88       13.19       1.61       6538       1.37       7527       8075  
 
                                                                               
NSW-56
    10     In-Place     6.90       8.53       20.05       1.19       5672       1.45       7067       7922  
 
          Optimized     3.50       8.67       10.88       0.94       6510       1.35       7308       8091  
 
                                                                               
NSW-57
    8     In-Place     7.90       5.24       15.49       1.22       6496       1.38       7684       8193  
 
          Optimized     5.20       5.23       12.08       1.29       6793       1.35       7727       8216  
 
                                                                               
NSW-57
    9     In-Place     22.80       5.72       16.08       1.69       6271       1.41       7466       8014  
 
          Optimized     17.45       5.76       13.61       1.80       6493       1.39       7514       8050  
 
                                                                               
NSW-57
    10     In-Place     9.60       8.32       17.74       1.39       5820       1.41       7059       7857  
 
          Optimized     7.20       7.68       15.23       1.41       6149       1.38       7254       7976  
 
IMMI. 04-3117
Nariin Sukhait
Technical Report
18-10

 


Table of Contents

Table 18.8
Nariin Sukhait Property, Mongolia
Float & Sink Analysis (Dry Basis)
                                                                                                                         
            Specific Gravity   Fraction Analysis (Dry Basis)   Cumulative Recovery (Float)   Cumulative Reject (Sink)
Sample   Interval   Sink   Float   %Wt.   %Ash   %Sul   Btu/lb   %Wt.   %Ash   %Sul   Btu/lb   %Wt.   %Ash   %Sul   Btu/lb
 
                  1.4       45.30       11.43       0.60       13,090       45.30       11.43       0.60       13,090       100.00       22.13       0.68       11,246  
 
    74.6-80.0,87.7-       1.4       1.5       23.40       16.69       0.67       12,198       68.70       13.22       0.62       12,786       54.70       31.00       0.75       9,718  
NS-09
    94.0&124.1-127.6       1.5       1.6       14.60       23.48       0.77       11,068       83.30       15.02       0.65       12,485       31.30       41.69       0.80       7,864  
 
            1.6             16.70       57.61       0.83       5,063       100.00       22.13       0.68       11,246       16.70       57.61       0.83       5,063  
 
                                                                                                                       
 
                  1.4       77.20       15.65       0.72       12,164       77.20       15.65       0.72       12,164       100.00       22.79       0.79       10,930  
 
            1.4       1.5       5.30       23.74       0.88       10,726       82.50       16.17       0.73       12,072       22.80       46.98       1.03       6,750  
NS-12
    70.0 - 73.3       1.5       1.6       3.30       33.71       1.05       8,983       85.80       16.84       0.74       11,953       17.50       54.01       1.07       5,546  
 
            1.6             14.20       58.73       1.08       4,747       100.00       22.79       0.79       10,930       14.20       58.73       1.08       4,747  
 
                                                                                                                       
 
                  1.4       80.70       10.38       0.57       13,133       80.70       10.38       0.57       13,133       100.00       13.41       0.70       12,354  
 
            1.4       1.5       6.00       17.11       0.79       11,516       86.70       10.85       0.59       13,021       19.30       26.08       1.23       9,094  
NS-13
    128.6 - 132.8       1.5       1.6       4.50       21.99       0.87       10,243       91.20       11.40       0.60       12,884       13.30       30.12       1.43       8,002  
 
            1.6             8.80       34.28       1.71       6,856       100.00       13.41       0.70       12,354       8.80       34.28       1.71       6,856  
 
                                                                                                                       
 
                  1.4       54.10       15.80       0.56       11,095       54.10       15.80       0.56       11,095       100.00       34.79       0.52       8,417  
 
            1.4       1.5       8.70       25.44       0.72       9,817       62.80       17.14       0.58       10,918       45.90       57.17       0.48       5,261  
NS-14
    0.50 - 12.35       1.5       1.6       7.60       34.18       0.53       8,488       70.40       18.98       0.58       10,656       37.20       64.59       0.43       4,195  
 
            1.6             29.60       72.40       0.40       3,093       100.00       34.79       0.52       8,417       29.60       72.40       0.40       3,093  
 
                                                                                                                       
 
                  1.4       93.20       9.71       0.92       13,336       93.20       9.71       0.92       13,336       100.00       11.18       1.01       13,054  
 
            1.4       1.5       2.80       21.69       1.47       11,242       96.00       10.06       0.94       13,275       6.80       31.37       2.27       9,182  
NS-16
    99.1 - 108.8       1.5       1.6       1.70       31.39       2.45       9,150       97.70       10.43       0.96       13,203       4.00       38.14       2.84       7,740  
 
            1.6             2.30       43.13       3.12       6,698       100.00       11.18       1.01       13,054       2.30       43.13       3.12       6,698  
 
                                                                                                                       
 
                  1.4       71.00       14.76       0.83       12,478       71.00       14.76       0.83       12,478       100.00       21.40       1.03       11,254  
 
    109.4 - 117.7; 118.6 -       1.4       1.5       9       24.13       0.94       10,727       80.00       15.81       0.84       12,281       29.00       37.67       1.51       8,258  
NS-16
    123.2       1.5       1.6       8.3       33.04       0.93       9,143       88.30       17.43       0.85       11,986       20.00       43.76       1.77       7,147  
 
            1.6             11.7       51.37       2.36       5,731       100.00       21.40       1.03       11,254       11.70       51.37       2.36       5,731  
 
IMMI. 04-3117
Nariin Sukhait
Technical Report
18-11

 


Table of Contents

Table 18.8
Nariin Sukhait Property, Mongolia
Float & Sink Analysis (Dry Basis)
                                                                                                                         
Sample   Interval   Specific Gravity   Fraction Analysis (Dry Basis)   Cumulative Recovery (Float)   Cumulative Reject (Sink)
            Sink   Float   %Wt.   %Ash   %Sul   Btu/lb   %Wt.   %Ash   %Sul   Btu/lb   %Wt.   %Ash   %Sul   Btu/lb
NS-18
    48.6 - 67.0             1.4       54.50       17.57       1.52       11,895       54.50       17.57       1.52       11,895       100.00       26.02       1.90       10,431  
 
            1.4       1.5       23.80       26.41       1.98       10,463       78.30       20.26       1.66       11,460       45.50       36.14       2.37       8,677  
 
            1.5       1.6       7.90       37.63       2.28       8,473       86.20       21.85       1.72       11,185       21.70       46.82       2.79       6,718  
 
            1.6             13.80       52.08       3.08       5,713       100.00       26.02       1.90       10,431       13.80       52.08       3.08       5,713  
 
                                                                                                                       
NS-18
    67.7 - 121.0             1.4       83.80       12.11       1.25       12,913       83.80       12.11       1.25       12,913       100.00       15.57       1.52       12,293  
 
            1.4       1.5       8.30       24.85       1.89       10,608       92.10       13.26       1.31       12,705       16.20       33.47       2.92       9,089  
 
            1.5       1.6       3.10       28.42       2.53       10,027       95.20       13.75       1.35       12,618       7.90       42.53       3.99       7,493  
 
            1.6             4.80       51.65       4.94       5,856       100.00       15.57       1.52       12,293       4.80       51.65       4.94       5,856  
 
                                                                                                                       
NS-18
    121.0 - 177.2             1.4       90.50       10.61       0.97       13,187       90.50       10.61       0.97       13,187       100.00       12.27       1.13       12,851  
 
            1.4       1.5       4.70       19.05       1.53       11,466       95.20       11.03       1.00       13,102       9.50       28.08       2.61       9,645  
 
            1.5       1.6       1.70       26.61       1.97       9,618       96.90       11.30       1.01       13,041       4.80       36.93       3.68       7,863  
 
            1.6             3.10       42.59       4.61       6,900       100.00       12.27       1.13       12,851       3.10       42.59       4.61       6,900  
 
                                                                                                                       
NS-20
    191.2 - 196.6             1.4       64.20       15.85       0.94       12,168       64.20       15.85       0.94       12,168       100.00       22.06       1.12       11,078  
 
            1.4       1.5       11.20       18.21       0.99       11,596       75.40       16.20       0.95       12,083       35.80       33.21       1.44       9,122  
 
            1.5       1.6       3.40       25.37       1.40       10,346       78.80       16.60       0.97       12,008       24.60       40.04       1.65       7,996  
 
            1.6             21.20       42.39       1.69       7,619       100.00       22.06       1.12       11,078       21.20       42.39       1.69       7,619  
 
                                                                                                                       
NS-22
    166.0 - 178.6             1.4       78.50       8.24       1.68       13,612       78.50       8.24       1.68       13,612       100.00       11.24       2.36       13,015  
 
            1.4       1.5       9.30       14.24       2.95       12,414       87.80       8.88       1.81       13,485       21.50       22.21       4.84       10,834  
 
            1.5       1.6       5.10       21.29       4.56       10,923       92.90       9.56       1.97       13,344       12.20       28.29       6.28       9,629  
 
            1.6             7.10       33.31       7.51       8,699       100.00       11.24       2.36       13,015       7.10       33.31       7.51       8,699  
 
                                                                                                                       
NS-22
    166.0 - 202.6             1.4       84.00       6.12       1.21       13,971       84.00       6.12       1.21       13,971       100.00       8.69       1.57       13,397  
 
            1.4       1.5       7.30       17.74       2.53       11,517       91.30       7.05       1.32       13,775       16.00       22.17       3.49       10,386  
 
            1.5       1.6       3.20       17.72       3.19       11,429       94.50       7.41       1.38       13,695       8.70       25.88       4.29       9,438  
 
            1.6             5.50       30.63       4.93       8,279       100.00       8.69       1.57       13,397       5.50       30.63       4.93       8,279  
IMMI. 04-3117
Nariin Sukhait
Technical Report
18-12

 


Table of Contents

Table 18.8
Nariin Sukhait Property, Mongolia
Float & Sink Analysis (Dry Basis)
                                                                                                                         
Sample   Interval   Specific Gravity   Fraction Analysis (Dry Basis)   Cumulative Recovery (Float)   Cumulative Reject (Sink)
            Sink   Float   %Wt.   %Ash   %Sul   Btu/lb   %Wt.   %Ash   %Sul   Btu/lb   %Wt.   %Ash   %Sul   Btu/lb
NS-22
    133.4 - 143.9             1.4       72.50       7.42       0.78       13,502       72.50       7.42       0.78       13,502       100.00       15.20       0.84       12,190  
 
            1.4       1.5       11.20       17.55       0.97       11,598       83.70       8.78       0.81       13,247       27.50       35.71       0.99       8,732  
 
            1.5       1.6       3.60       26.99       1.40       9,913       87.30       9.53       0.83       13,110       16.30       48.18       1.00       6,762  
 
            1.6             12.70       54.19       0.89       5,869       100.00       15.20       0.84       12,190       12.70       54.19       0.89       5,869  
 
                                                                                                                       
NS-22
    144.8 - 165.8             1.4       81.20       8.90       1.11       13,447       81.20       8.90       1.11       13,447       100.00       13.11       1.19       12,691  
 
            1.4       1.5       5.80       14.83       1.28       12,442       87.00       9.30       1.12       13,380       18.80       31.28       1.53       9,424  
 
            1.5       1.6       3.30       17.41       1.25       11,636       90.30       9.59       1.13       13,316       13.00       38.62       1.65       8,078  
 
            1.6             9.70       45.83       1.78       6,867       100.00       13.11       1.19       12,691       9.70       45.83       1.78       6,867  
 
                                                                                                                       
NS-23
    141.3 - 155.8             1.4       69.40       11.00       1.76       13,082       69.40       11.00       1.76       13,082       100.00       16.66       2.34       11,972  
 
            1.4       1.5       9.60       12.40       2.08       12,713       79.00       11.17       1.80       13,037       30.60       29.51       3.64       9,455  
 
            1.5       1.6       7.50       21.55       2.90       10,931       86.50       12.07       1.89       12,855       21.00       37.33       4.36       7,966  
 
            1.6             13.50       46.10       5.17       6,319       100.00       16.66       2.34       11,972       13.50       46.10       5.17       6,319  
 
                                                                                                                       
NS-23
    156.7 - 204.5             1.4       93.10       8.75       1.39       13,346       93.10       8.75       1.39       13,346       100.00       9.62       1.47       13,160  
 
            1.4       1.5       1.70       12.32       1.64       12,655       94.80       8.81       1.39       13,334       6.90       21.29       2.50       10,653  
 
            1.5       1.6       2.30       18.09       2.25       11,287       97.10       9.03       1.41       13,285       5.20       24.22       2.79       9,999  
 
            1.6             2.90       29.09       3.21       8,977       100.00       9.62       1.47       13,160       2.90       29.09       3.21       8,977  
 
                                                                                                                       
NS-29
    145.6 - 169.7             1.4       86.40       9.13       0.94       13,349       86.40       9.13       0.94       13,349       100.00       10.85       1.07       13,008  
 
            1.4       1.5       6.50       15.49       1.69       12,162       92.90       9.57       0.99       13,266       13.60       21.75       1.92       10,841  
 
            1.5       1.6       4.50       22.22       1.53       10,721       97.40       10.16       1.02       13,148       7.10       27.48       2.12       9,632  
 
            1.6             2.60       36.58       3.15       7,747       100.00       10.85       1.07       13,008       2.60       36.58       3.15       7,747  
 
                                                                                                                       
NS-29
    118.6 - 145.1             1.4       84.70       8.98       0.93       13,258       84.70       8.98       0.93       13,258       100.00       11.17       1.09       12,854  
 
            1.4       1.5       4.60       14.86       1.30       12,211       89.30       9.28       0.95       13,204       15.30       23.28       1.95       10,616  
 
            1.5       1.6       6.40       19.34       1.44       11,234       95.70       9.96       0.98       13,072       10.70       26.90       2.23       9,930  
 
            1.6             4.30       38.15       3.40       7,990       100.00       11.17       1.09       12,854       4.30       38.15       3.40       7,990  
IMMI. 04-3117
Nariin Sukhait
Technical Report
18-13

 


Table of Contents

Table 18.8
Nariin Sukhait Property, Mongolia
Float & Sink Analysis (Dry Basis)
                                                                                                                         
Sample   Interval   Specific Gravity   Fraction Analysis (Dry Basis)   Cumulative Recovery (Float)   Cumulative Reject (Sink)
            Sink   Float   %Wt.   %Ash   %Sul   Btu/lb   %Wt.   %Ash   %Sul   Btu/lb   %Wt.   %Ash   %Sul   Btu/lb
NS-32
    34.0 - 50.1             1.4       77.30       11.17       0.94       12,869       77.30       11.17       0.94       12,869       100.00       15.12       1.28       12,131  
 
            1.4       1.5       11.30       15.59       1.76       11,789       88.60       11.73       1.04       12,731       22.70       28.59       2.44       9,616  
 
            1.5       1.6       4.50       23.70       2.77       10,391       93.10       12.31       1.13       12,618       11.40       41.47       3.12       7,462  
 
            1.6             6.90       53.06       3.34       5,552       100.00       15.12       1.28       12,131       6.90       53.06       3.34       5,552  
 
                                                                                                                       
NS-32
    50.1 - 53.9             1.4       44.90       9.00       1.33       13,345       44.90       9.00       1.33       13,345       100.00       27.01       1.80       10,319  
 
            1.4       1.5       17.10       13.69       2.12       12,494       62.00       10.29       1.55       13,110       55.10       41.69       2.18       7,854  
 
            1.5       1.6       8.30       17.90       2.86       11,640       70.30       11.19       1.70       12,937       38.00       54.29       2.20       5,766  
 
            1.6             29.70       64.46       2.02       4,124       100.00       27.01       1.80       10,319       29.70       64.46       2.02       4,124  
 
                                                                                                                       
NS-32
    54.75 - 62.4             1.4       42.10       9.76       0.70       13,055       42.10       9.76       0.70       13,055       100.00       17.31       2.07       11,800  
 
            1.4       1.5       35.30       15.64       1.04       12,126       77.40       12.44       0.86       12,631       57.90       22.81       3.07       10,888  
 
            1.5       1.6       12.80       23.10       3.03       10,726       90.20       13.95       1.16       12,361       22.60       34.00       6.23       8,955  
 
            1.6             9.80       48.24       10.41       6,641       100.00       17.31       2.07       11,800       9.80       48.24       10.41       6,641  
 
                                                                                                                       
NS-33
    36.0 - 40.95             1.4       47.80       8.39       0.73       13,389       47.80       8.39       0.73       13,389       100.00       25.00       0.92       10,482  
 
            1.4       1.5       12.50       12.27       1.17       12,649       60.30       9.19       0.82       13,236       52.20       40.22       1.09       7,821  
 
            1.5       1.6       5.00       20.33       1.32       11,053       65.30       10.05       0.86       13,068       39.70       49.02       1.07       6,301  
 
            1.6             34.70       53.15       1.03       5,616       100.00       25.00       0.92       10,482       34.70       53.15       1.03       5,616  
 
                                                                                                                       
NS-34
    109.6 - 141.6             1.4       83.60       9.92       0.75       13,192       83.60       9.92       0.75       13,192       100.00       15.28       0.92       12,119  
 
            1.4       1.5       2.10       13.14       0.78       12,460       85.70       10.00       0.75       13,174       16.40       42.59       1.78       6,648  
 
            1.5       1.6       3.40       21.43       1.39       10,597       89.10       10.44       0.78       13,076       14.30       46.92       1.93       5,795  
 
            1.6             10.90       54.87       2.10       4,297       100.00       15.28       0.92       12,119       10.90       54.87       2.10       4,297  
 
                                                                                                                       
NS-34
    142.7 - 149.0             1.4       67.20       9.92       0.69       13,266       67.20       9.92       0.69       13,266       100.00       19.77       1.08       11,441  
 
            1.4       1.5       8.10       19.98       1.25       11,705       75.30       11.00       0.75       13,098       32.80       39.94       1.88       7,701  
 
            1.5       1.6       6.40       30.70       1.37       9,577       81.70       12.55       0.80       12,822       24.70       46.49       2.08       6,388  
 
            1.6             18.30       52.01       2.33       5,273       100.00       19.77       1.08       11,441       18.30       52.01       2.33       5,273  
 
                                                                                                                       
NS-34
    81.7 - 84.7             1.4       42.30       9.07       0.98       13,009       42.30       9.07       0.98       13,009       100.00       19.49       1.22       10,964  
 
            1.4       1.5       19.80       11.88       0.93       12,359       62.10       9.97       0.96       12,802       57.70       27.12       1.40       9,464  
 
            1.5       1.6       15.20       19.84       1.10       10,325       77.30       11.91       0.99       12,315       37.90       35.08       1.65       7,952  
 
            1.6             22.70       45.29       2.01       6,363       100.00       19.49       1.22       10,964       22.70       45.29       2.01       6,363  
 
                                                                                                                       
NS-34
    86.3 - 107.0             1.4       27.70       11.45       0.78       12,912       27.70       11.45       0.78       12,912       100.00       30.59       1.58       9,597  
 
            1.4       1.5       20.50       12.93       0.82       12,582       48.20       12.08       0.80       12,772       72.30       37.92       1.89       8,326  
 
            1.5       1.6       17.10       24.14       1.19       10,555       65.30       15.24       0.90       12,191       51.80       47.81       2.31       6,642  
 
            1.6             34.70       59.47       2.86       4,714       100.00       30.59       1.58       9,597       34.70       59.47       2.86       4,714  
IMMI. 04-3117
Nariin Sukhait
Technical Report
18-14

 


Table of Contents

Table 18.9
Narain Sukhait Key Metallurgical Properties
                                                                                                                 
    Seam Interval (m)   Unwashed Composite   Washability at 1.4 Float   Metallurgical Properties
                    Btu/lb Moist,   Volatiles                           Sulphur                   Plasticity   Dilatometer   Mean-Max   Phos-
                    mm-free   (MAF)   Rank   Cumulative   Ash Content   Content   Btu/lb           Gieseler   Dilation   Reflectance   phorus (%
Hole Number   From   To   (ASTM)   (ASTM)   (ASTM)   Recovery (%)   (Dry)1   (Dry)   (MAF)   FSI   DDPM   (% Max)   (% in Oil)   Dry Basis)
Parameter Range, Min, Max
                  Min 13,000     20-35     hvB b-lvb     50+     Max-12   Max-1.0       12,600-15,500       4-8       100-10,000       50-200       0.7-1.8     Max 0.2
 
                                                                                                               
NS-BS-01
  NA   NA     14,255       36.26     hvAb     90.5       5.16       0.61       14,712            4.5       2       -28       0.86       0.01  
NS-09 (3 benches)
    74.60       127.60       13,721       37.12     hvBb     45.3       11.43       0.60       14,779            1.5       2       -28       0.87       0.01  
NS-12
    70.00       73.30       13,456       38.08     hvBb     77.2       15.65       0.72       14,421            1.0       0       -29       0.89          
NS-13
    128.60       132.80       13,778       39.43     hvBb     80.7       10.38       0.57       14,654            7.0       517       +49       0.94          
NS-14
    0.50       12.35       10,585       41.37     Wxd     54.1       15.80       0.56       13,177                          No Test                
NS-16
    99.10       108.80       13,871       36.53     hvBb     93.2       9.71       0.92       14,770            1.0       4       0.35       0.90          
NS-16
    109.40       123.20       13,551       38.48     hvBb     71.0       14.76       0.83       14,639                          Pending                
NS-18
    48.60       67.00       13,468       40.58     hvBb     54.5       17.57       1.52       14,430            1.0       2       -29       0.82          
NS-18
    67.70       121.00       13,678       37.21     hvBb     83.8       12.11       1.25       14,692            2.0       1       -33       0.87          
NS-18
    121.00       177.20       13,955       35.99     hvBb     90.5       10.61       0.97       14,752            2.0       2       -29       0.92          
 
1   Ash content may be improved through selective mining techniques and the removal of inferior quality horizons
IMMI. 04-3117
Nariin Sukhait
Technical Report
18-15

 


Table of Contents

Table 18.10
Naraiin Suikhait Coal Quality with Rank Calculations
Actual Data — July 14, 2005
                                                                                                                                                                         
                                                                                                                                            SO3 in Ash,            
            Total   EQ   EQ Moisture Basis   Dry Basis   Dmmf   Dmmf                   % of   (SFA) %   (SFA) %   ASTM
Hole Number   Seam Name   Moisture   Moisture   Ash   Volatile   FC   Sulphur   Btu/lb   Ash   Volatile   FC   Sulphur   Btu/lb   FC   Volatiles   MmmF Btu/lb   SO3 in Ash   coal (AR)   (AR) Ash   (AR) FC   Rank
NS-BS-1
  UNK     2.37       3.80       6.90       33.25       56.06       0.77       13348       7.17       34.56       58.27       0.80       13875       63.74       36.26       14255       16.64       1.15       5.75       57.20     hvAb
NS-09
  UNK     12.27       5.14       19.63       23.99       51.23       0.53       9269       20.70       25.29       54.01       0.56       9772       70.07       29.93       11608       5.30       1.04       18.59       52.27     hvCb
NS-12
  UNK     17.21       4.50       20.32       30.19       44.99       0.77       10664       21.28       31.61       47.11       0.81       11166       61.92       38.08       13456       6.08       1.24       19.09       46.23     hvBb
NS-13
  UNK     10.03       3.90       13.42       33.70       48.98       0.62       11912       13.96       35.07       50.97       0.65       12395       60.57       39.43       13778       7.31       0.98       12.43       49.96     hvBb
NS-14
  UNK     21.58       15.10       30.15       24.39       30.36       0.45       7211       35.51       28.73       35.76       0.53       8494       58.63       41.37       10585       2.23       0.67       29.48       31.03     Wxd
NS-16
    5U       14.54       4.00       9.84       32.62       53.54       0.99       12585       10.25       33.98       55.77       1.03       13109       63.47       36.53       13871       14.48       1.42       8.42       54.96     hvBb
NS-16
    5L       12.31       4.40       21.28       30.28       44.03       0.89       10617       22.26       31.67       46.06       0.93       11106       61.52       38.48       13551       6.54       1.39       19.89       45.42     hvBb
NS-18
    5U       9.34       4.49       26.75       30.22       38.54       1.71       9837       28.01       31.64       40.35       1.79       10299       59.42       40.58       13468       7.74       2.07       24.68       40.61     hvBb
NS-18
    5M       10.00       5.05       14.29       31.56       49.11       1.33       11792       15.05       33.23       51.72       1.40       12419       62.79       37.21       13678       12.22       1.75       12.54       50.85     hvBb
NS-18
    5L       10.66       4.17       11.48       31.64       52.70       1.07       12431       11.98       33.02       55.00       1.12       12972       64.01       35.99       13955       13.59       1.56       9.92       54.26     hvBb
IMMI. 04-3117
Nariin Sukhait
Technical Report
18-16

 


Table of Contents

  19   MINERAL RESOURCE ESTIMATES
 
      The following is a discussion of the criteria and results obtained for coal resource estimation for the Nariin Sukhait Property. In accordance with NI 43-101 and the CIM Definition Standards, one or more Qualified Persons, employees of Norwest, supervised the data validation and the resource estimation and classification work. The certifications for the Qualified Person(s) are provided in Section 24 of this report.
 
  19.1   Approach
 
      In accordance with National Instrument 43-101, Norwest has used the referenced document, the Canadian Institute of Mining, Metallurgy and Petroleum’s “CIM Definition Standards on Mineral Resources and Reserves” adopted by the CIM Council on November 14, 2004 and referenced the Geological Survey of Canada Paper 88-21 “A Standardized Coal Resource/Reserve Reporting System for Canada” (GSC Paper 88-21) during the classification, estimation and reporting of coal resources for the Nariin Sukhait Property.
 
      To facilitate the estimation of resources in the Nariin Sukhait Property, Norwest developed geological models for the property using Minex® software. The geological models are built from drill hole data as a series of three-dimensional grids or “surfaces” representing the top and bottom surfaces of the coal seams and interburden layers within a defined area. Key horizons or “surfaces” were modeled to provide the required inputs for volume estimation. Volumes were converted to tonnage by the application of density values representative of each coal seam to be mined. Minex software is developed and marketed by the Surpac Minex Group headquarterd in Perth, W.A. Australia. Minex is an internationally recognized geological and mine modeling software system.
  19.2   Geologic Modeling Parameters
    Gridding Method: Growth Technique — Method surrounds real data with local grid nodes and infills the node values by growing out (estimating) from the initial (real) values.
 
    Grid Cell Size: 10 by 10m.
 
    Search Distance: 2,500m.
 
    Grids were calculated to fill the areas of investigation from selected x-y origins and extents. No default or dummy values were used in building grid surfaces.
 
    Topographic grids were developed from drill hole collar elevations.
  19.3   Coal Resource Estimation
 
      The term “resource” is utilized to quantify coal contained in seams occurring within specified limits of thickness and depth from surface. The term “resource” refers to the in-place inventory of coal that has ‘reasonable prospects for economic extraction’. Coal resources are always reported
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Table of Contents

      as in-place tonnage and not adjusted for mining losses or recovery. However, minimum mineable seam thickness and maximum removable parting thickness are considered.
 
      GSC Paper 88-21 provides two feasibility classes for resources: immediate interest and future interest. Resources of immediate interest are contained in coal seams that have a favourable combination of characteristics and are considered to be of immediate interest for possible exploitation. These resources would not have been the subject of a feasibility study required to classify them as reserves. Resources of future interest are contained in seams which are not of immediate interest for possible exploitation but which could become of interest in the foreseeable future.
 
      Resources are classified as to the assurance of their existence into one of three categories, Measured, Indicated, or Inferred. The category to which a resource is assigned depends on the level of confidence in the geological information available (CIM Definition Standards). GSC Paper 88-21 provides guidance for categorizing various types of coal deposits by levels of assurance. These were considered by the Qualified Persons during the classification of the resources.
 
      The in-place resource within the Nariin Sukhait Property, summarized in Table 19.1, covers three areas within the property for a combined area of 1.8km2. The in-place resource areas are shown on Figure(s) 19.1, 19.2, and 19.3. These resources include all coal seams intended for mining within the South, East, and West Fields that have been defined to a reasonable level of geologic assurance and with minimum thicknesses consistent with the recommendations of GSC 88-21.
Table 19.1
In-Place Coal Resources Summary
As of August 9, 2005
                                 
            In-Place Resources  
    ASTM     (Tonnes)  
Area   Group     Measured     Indicated     Inferred  
South Field
      9,771,000       8,704,000       9,870,000  
East Field
  High Volatile Bituminous     20,007,000       10,862,000       5,086,000  
West Field
      33,277,000       33,545,000       26,806,000  
Total
            116,166,000       41,762,000  
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Technical Report

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Table of Contents

  19.4   Quantification Parameters
 
      Minimum seam thickness: 0.6m
 
      Maximum rock parting included: 0.6m
 
      Weathered Zone Exclusion: 5.0m (topography minus 5 meters)
 
      Assurance of Existence (Distance Between Data Points)
Measured Resources: 0-75m
Indicated Resources: 75-150m
Inferred Resources: 150-300m
Speculative Resources: not considered
      Maximum Depth: 250m or less than 20:1 ratio
 
  19.5   South Field Resources
 
      All resources identified in the South Field are in the No. 5 Seam. Thirty drill holes define the resource area. Measured plus indicated resources encompass an area of 0.27km2 (Figure 19.1). Average seam thickness for the No. 5 seam within the resource area is 58.16m. A total of 18.5 Mt of measured and indicated resources have been identified in the South Field.
Table 19.2
South Field In-Place Coal Resources Summary
as Of August 9, 2005
                                                                 
    Seam   Coal   Specific           Waste   Waste   In-place (BCM/Tonne)
  Thickness   Area   Gravity   In-Place   Thickness   Volume        
Seam   (m)   (m2)   (g/cm3)   Tonnes   (m)   (m3)   Incremental   Cumulative
Measured
5
    60.80       118,000       1.36       9,771,000       90.40       10,669,000       1.09       1.09  
Indicated
5
    55.20       115,000       1.37       8,704,000       135.80       15,613,000       1.79       1.79  
Inferred
5
    43.30       166,000       1.38       9,870,000       203.00       37,466,000       3.80       3.80  
 
                                                               
Total — Measured                                                        
   plus Indicated                     18,475,000               63,748,000               3.45  
 
                                                               
Total — Inferred                     9,870,000               37,466,000               3.80  
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Table of Contents

  19.6   East Field Resources
 
      Resources identified in the East Field are contained in the Nos. 8, 9, and 10 Seams. Resources occur in two distinct area having a combined aerial extent of 0.52km2 (Figure 19.2). Combined coal thickness for the three seams is approximately 15.8m. A total of 30.8 Mt of measured and indicated resources have been identified in the East Field.
 
  19.7   West Field Resources
 
      Resources identified in the West Field are contained in the Nos. 5, 8, 9, 10, and 11 Seams. Resources in the No. 5 Seam occur over an area of approximately 0.3km2 with an average thickness of 52.5m (Figure 19.3). Upper seams (Nos. 8, 9, and 10) on the southeast limb of the antiform have a combined coal thickness of 4.3m, extending over an area of approximately 0.5km2 . Upper seams (nos. 8, 9, 10, and 11) on the northwest limb of the antiform have a combined coal thickness of 4.2m, extending over an area of approximately 0.2km2 . A total of 66.8 Mt of measured and indicated resources have been identified in the West Field.
IMMI. 04-3117
Nariin Sukhait
Technical Report
19-4


Table of Contents

Table 19.3
East Field In-Place Coal Resources Summary (‘000 Tonnes)
as Of August 9, 2005
                                                                         
                            Specific                            
            Seam     Coal Area     Gravity             Waste     Waste Volume     In-place (BCM/Tonne)  
Seam   SubSeam     Thickness (m)     (m2)     (g/cm3)     In-Place Tonnes     Thickness (m)     (m3)     Incremental     Cumulative  
 
Measured — Northeast Block
10
    1020       7.6       25,000       1.41       267,000       99.30       3,193,000       11.96       11.96  
10
    1010       2.6       79,000       1.49       308,000       4.60       430,000       1.40       6.30  
10
    10       9.7       100,000       1.40       1,355,000       7.40       783,000       0.58       2.28  
9
    9       34.4       140,000       1.47       7,086,000       23.00       3,363,000       0.47       0.86  
8
    810       6.3       61,000       1.41       543,000       15.10       1,017,000       1.87       0.92  
8
    8       6.8       99,000       1.42       955,000       9.20       964,000       1.01       0.93  
SubTotal
                    504,000               10,514,000               9,750,000               0.93  
 
                                                                       
Indicated — Northeast Block
10
    1020       5.1       12,000       1.37       84,000       108.00       3,638,000       43.31       43.31  
10
    1010       1.9       41,000       1.48       114,000       6.80       706,000       6.19       21.94  
10
    10       5.5       90,000       1.43       704,000       11.20       1,111,000       1.58       6.05  
9
    9       31.0       100,000       1.43       4,440,000       18.50       2,121,000       0.48       1.42  
8
    810       3.2       93,000       1.41       421,000       19.50       2,304,000       5.47       1.71  
8
    8       5.9       88,000       1.41       733,000       10.10       947,000       1.29       1.67  
SubTotal
                    424,000               6,496,000               10,827,000               1.67  
 
                                                                       
Inferred — Northeast Block
10
    1020       1.9       6,000       1.40       16,000       161.00       12,122,000       757.63       757.63  
10
    1010       0.8       3,000       1.47       4,000       8.00       1,151,000       287.75       663.65  
10
    10       5.5       83,000       1.45       663,000       17.20       2,212,000       3.34       22.67  
9
    9       22.6       32,000       1.40       1,015,000       16.30       889,000       0.88       9.64  
8
    810       1.9       33,000       1.42       89,000       22.00       1,367,000       15.36       9.93  
8
    8       5.6       33,000       1.42       263,000       16.10       575,000       2.19       8.93  
SubTotal
                    190,000               2,050,000               18,316,000               8.93  
 
                                                                       
Measured — Southwest Block
10
    1020       2.8       18,000       1.41       71,000       71.00       1,661,000       23.39       23.39  
10
    1010       3.5       38,000       1.57       207,000       2.70       116,000       0.56       6.39  
10
    10       41.4       102,000       1.37       5,771,000       16.40       1,685,000       0.29       0.57  
9
    9       26.4       80,000       1.59       3,364,000       53.80       4,549,000       1.35       0.85  
8
    810                                                 0.85  
8
    8       2.6       22,000               80,000       1.30       29,000       0.36       0.85  
SubTotal
                    260,000               9,493,000               8,040,000               0.85  
 
                                                                       
Indicated — Southwest Block
10
    1020       2.2       23,000       1.46       74,000       93.00       3,590,000       48.51       48.51  
10
    1010       2.8       21,000       1.56       94,000       4.70       228,000       2.43       22.73  
10
    10       37.0       47,000       1.37       2,381,000       48.10       2,565,000       1.08       2.50  
9
    9       24.9       44,000       1.59       1,720,000       50.90       3,101,000       1.80       2.22  
8
    810                                                   2.22  
8
    8       2.5       27,000       1.44       97,000       0.90       25,000       0.26       2.18  
SubTotal
                    162,000               4,366,000               9,509,000               2.18  
 
                                                                       
Inferred — Southwest Block
10
    1020       1.8       67,000       1.42       171,000       115.80       12,132,000       70.95       70.95  
10
    1010       1.5       9,000       1.56       21,000       7.10       620,000       29.52       66.42  
10
    10       34.7       39,000       1.35       1,830,000       61.80       4,728,000       2.58       8.64  
9
    9       18.0       28,000       1.51       762,000       37.10       1,183,000       1.55       6.70  
8
    810                                                   6.70  
8
    8       3.2       56,000       1.41       252,000       1.40       77,000       0.31       6.17  
SubTotal     199,000               3,036,000               18,740,000               6.17  
 
                                                                       
Total — Measured plus Indicated             30,869,000               38,126,000               1.24  
 
                                                                       
Total — Inferred                     5,086,000               37,056,000               7.29  
IMMI. 04-3117
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Technical Report
19-5

 


Table of Contents

Table 19.4
Nariin Sukhait Property
West Field In-Place Coal Resources Summary
                                                                         
                            Specific                          
            Seam     Coal Area     Gravity     In-Place     Waste     Waste Volume     In-place (BCM/Tonne)  
Seam   SubSeam     Thickness (m)     (m2)     (g/cm3)     Tonnes     Thickness (m)     (m3)     Incremental     Cumulative  
 
Measured — Southeast Block
10
    1050       2.0       11,000       1.40       32,000       32.30       410,000       12.81       12.81  
10
    1040       1.7       25,000       1.43       61,000       8.10       223,000       3.64       6.79  
10
    1030       4.6       118,000       1.42       770,000       21.10       2,789,000       3.62       3.97  
10
    1020       3.6       95,000       1.41       485,000       15.90       1,729,000       3.57       3.82  
10
    1010       2.1       94,000       1.40       276,000       2.10       252,000       0.91       3.33  
10
    10       7.8       162,000       1.41       1,784,000       1.50       253,000       0.14       1.66  
9
    998       2.2       74,000       1.44       235,000       4.20       358,000       1.53       1.65  
9
    996       2.8       71,000       1.41       280,000       4.40       319,000       1.14       1.61  
9
    990       1.6       143,000       1.42       325,000       16.40       2,614,000       8.04       2.11  
9
    980       6.2       183,000       1.41       1,601,000       5.90       1,120,000       0.70       1.72  
9
    970       4.4       174,000       1.40       1,074,000       3.30       594,000       0.55       1.54  
9
    960       2.5       171,000       1.43       609,000       3.00       537,000       0.88       1.49  
9
    950       2.1       173,000       1.40       508,000       3.40       602,000       1.18       1.47  
9
    942       1.6       96,000       1.42       220,000       5.20       635,000       2.89       1.51  
9
    940       12.6       198,000       1.41       3,506,000       4.40       885,000       0.25       1.13  
9
    9       2.2       69,000       1.42       215,000       7.90       797,000       3.71       1.18  
8
    810       1.9       114,000       1.42       306,000       6.50       825,000       2.70       1.22  
8
    8       5.7       150,000       1.40       1,199,000       2.00       301,000       0.25       1.13  
8
    790       2.1       69,000       1.39       201,000       1.30       117,000       0.58       1.12  
5
    5       54.1       105,000       1.35       7,667,000       69.70       7,910,000       1.03       1.09  
SubTotal
                                    21,354,000               23,271,000               1.09  
 
                                                                       
Indicated — Southeast Block
10
    1050       1.9       27,000       1.43       73,000       70.00       1,949,000       26.63       26.63  
10
    1040       1.5       47,000       1.45       103,000       8.80       518,000       5.04       14.01  
10
    1030       4.4       192,000       1.42       1,194,000       24.40       5,110,000       4.28       5.53  
10
    1020       3.0       137,000       1.40       574,000       13.60       2,281,000       3.97       5.07  
10
    1010       2.9       148,000       1.41       607,000       2.30       514,000       0.85       4.06  
10
    10       7.6       228,000       1.41       2,440,000       1.30       307,000       0.13       2.14  
9
    998       2.1       79,000       1.42       237,000       5.20       597,000       2.52       2.16  
9
    996       2.0       81,000       1.43       232,000       4.40       365,000       1.58       2.13  
9
    990       1.6       195,000       1.40       436,000       15.90       3,949,000       9.06       2.64  
9
    980       5.9       241,000       1.41       2,008,000       5.60       1,375,000       0.68       2.15  
9
    970       4.3       240,000       1.41       1,458,000       3.10       804,000       0.55       1.90  
9
    960       2.4       225,000       1.42       769,000       2.30       578,000       0.75       1.81  
9
    950       1.7       200,000       1.42       483,000       3.00       644,000       1.33       1.79  
9
    942       1.4       91,000       1.44       184,000       4.70       809,000       4.39       1.83  
9
    940       12.3       233,000       1.41       4,036,000       4.00       972,000       0.24       1.40  
9
    9       2.0       89,000       1.38       246,000       8.30       1,365,000       5.55       1.47  
8
    810       1.7       161,000       1.41       385,000       6.70       1,359,000       3.53       1.52  
8
    8       5.4       193,000       1.40       1,460,000       2.30       457,000       0.31       1.42  
8
    790       1.8       119,000       1.43       306,000       1.40       253,000       0.83       1.40  
5
    5       50.9       109,000       1.35       7,492,000       135.90       19,318,000       2.58       1.76  
SubTotal
                                    24,723,000               43,524,000               1.76  
 
                                                                       
Inferred — Southeast Block
10
    1050       1.7       99,000       1.44       243,000       131.40       13,727,000       56.38       56.38  
10
    1040       1.6       113,000       1.43       259,000       9.20       1,827,000       7.07       30.98  
10
    1030       3.0       263,000       1.40       1,106,000       22.10       7,178,000       6.49       14.13  
10
    1020       1.5       161,000       1.40       338,000       12.30       3,379,000       9.99       13.41  
10
    1010       4.0       191,000       1.41       1,076,000       2.70       729,000       0.68       8.88  
10
    10       6.4       219,000       1.41       1,985,000       1.00       197,000       0.10       5.40  
9
    998       2.5       65,000       1.40       227,000       5.10       970,000       4.27       5.35  
9
    996       1.5       66,000       1.42       140,000       5.40       536,000       3.83       5.31  
9
    990       1.5       141,000       1.40       296,000       9.80       2,125,000       7.18       5.41  
9
    980       7.7       147,000       1.40       1,584,000       4.60       517,000       0.33       4.30  
9
    970       5.4       142,000       1.40       1,076,000       1.10       133,000       0.12       3.76  
9
    960       2.2       139,000       1.41       429,000       1.10       139,000       0.32       3.59  
9
    950       1.0       72,000       1.37       99,000       1.70       131,000       1.32       3.57  
9
    942       1.3       1,000       1.37       1,000       3.50       346,000       253.13       3.60  
9
    940       13.7       126,000       1.41       2,437,000       3.70       495,000       0.20       2.87  
9
    9       1.5       95,000       1.40       200,000       8.20       1,300,000       6.51       2.93  
8
    810       1.5       148,000       1.38       306,000       6.70       1,337,000       4.37       2.97  
8
    8       4.7       157,000       1.41       1,046,000       2.20       362,000       0.35       2.76  
8
    790       1.9       166,000       1.41       445,000       1.40       320,000       0.72       2.69  
5
    5       44.3       30,000       1.35       1,797,000       115.90       25,389,000       14.13       4.05  
SubTotal
                                    15,091,000               61,140,000               4.05  
IMMI. 04-3117
Nariin Sukhait
Technical Report
19-6

 


Table of Contents

Table 19.4
Nariin Sukhait Property
West Field In-Place Coal Resources Summary
                                                                         
                            Specific                            
            Seam     Coal Area     Gravity             Waste     Waste Volume     In-place (BCM/Tonne)  
Seam   SubSeam     Thickness (m)     (m2)     (g/cm3)     In-Place Tonnes     Thickness (m)     (m3)     Incremental     Cumulative  
 
Measured — Northwest Block
11
    1170       8.2       90,000       1.40       1,031,000       32.60       3,210,000       3.11       3.11  
11
    1160       2.5       94,000       1.42       334,000       4.20       416,000       1.24       2.66  
11
    1150       1.8       90,000       1.40       226,000       3.20       321,000       1.42       2.48  
11
    1140       1.2       82,000       1.43       141,000       2.70       264,000       1.87       2.43  
11
    1130       14.0       113,000       1.41       2,216,000       4.10       466,000       0.21       1.18  
11
    1120       2.6       124,000       1.43       461,000       6.00       778,000       1.69       1.24  
11
    1110       2.4       77,000       1.41       262,000       6.40       549,000       2.10       1.29  
11
    1100       2.9       113,000       1.39       458,000       1.20       136,000       0.30       1.20  
10
    1050       1.5       59,000       1.39       122,000       64.00       3,988,000       32.74       1.93  
10
    1040       2.0       76,000       1.39       213,000       14.40       1,197,000       5.63       2.07  
10
    1030       2.4       95,000       1.44       328,000       6.30       627,000       1.91       2.06  
10
    1020       3.7       116,000       1.42       613,000       12.10       1,417,000       2.31       2.09  
10
    1010       2.5       112,000       1.41       394,000       9.70       1,065,000       2.71       2.12  
10
    10       10.8       112,000       1.41       1,710,000       3.80       429,000       0.25       1.75  
9
    990       2.2       69,000       1.40       213,000       25.20       1,745,000       8.19       1.90  
9
    980       7.1       69,000       1.41       689,000       7.50       523,000       0.76       1.82  
9
    970       2.5       68,000       1.44       244,000       1.30       88,000       0.36       1.78  
9
    960       2.2       60,000       1.42       189,000       5.10       314,000       1.67       1.78  
9
    950       2.1       66,000       1.43       199,000       1.90       122,000       0.62       1.76  
9
    942       2.9       31,000       1.43       129,000       2.80       94,000       0.73       1.75  
9
    940       11.4       65,000       1.40       1,040,000       1.70       87,000       0.08       1.59  
9
    9       2.3       62,000       1.42       202,000       4.40       277,000       1.37       1.59  
8
    810       1.9       38,000       1.43       103,000       5.30       268,000       2.60       1.60  
8
    8       5.6       50,000       1.40       391,000       4.50       241,000       0.61       1.56  
8
    790       1.2       9,000       1.39       16,000       1.60       21,000       1.36       1.56  
SubTotal
                                    11,923,000               18,645,000               1.56  
Indicated — Northwest Block
11
    1170       8.3       32,000       1.41       374,000       33.80       1,205,000       3.22       3.22  
11
    1160       3.0       37,000       1.42       159,000       7.40       328,000       2.07       2.88  
11
    1150       2.3       40,000       1.40       128,000       6.50       310,000       2.41       2.79  
11
    1140       1.3       35,000       1.45       66,000       3.10       163,000       2.46       2.76  
11
    1130       15.8       57,000       1.41       1,275,000       4.60       315,000       0.25       1.16  
11
    1120       3.0       60,000       1.39       250,000       7.70       514,000       2.06       1.26  
11
    1110       2.0       69,000       1.40       195,000       6.20       639,000       3.28       1.42  
11
    1100       2.9       69,000       1.41       282,000       1.50       103,000       0.37       1.31  
10
    1050       1.3       79,000       1.44       148,000       68.90       7,154,000       48.30       3.73  
10
    1040       1.8       92,000       1.43       238,000       13.00       1,388,000       5.82       3.89  
10
    1030       1.8       82,000       1.42       208,000       5.70       586,000       2.81       3.82  
10
    1020       4.1       98,000       1.41       571,000       13.20       1,321,000       2.31       3.60  
10
    1010       2.5       102,000       1.43       366,000       9.00       905,000       2.47       3.50  
10
    10       10.7       101,000       1.42       1,532,000       4.90       512,000       0.33       2.67  
9
    990       2.1       78,000       1.40       228,000       20.10       1,613,000       7.08       2.83  
9
    980       6.7       75,000       1.41       706,000       6.40       499,000       0.71       2.61  
9
    970       2.2       71,000       1.38       215,000       0.90       61,000       0.28       2.54  
9
    960       1.7       54,000       1.45       133,000       5.50       337,000       2.55       2.54  
9
    950       1.9       67,000       1.44       183,000       1.90       129,000       0.70       2.49  
9
    942       2.5       31,000       1.42       109,000       1.70       69,000       0.63       2.46  
9
    940       8.7       63,000       1.41       770,000       1.40       52,000       0.07       2.24  
9
    9       2.5       56,000       1.43       201,000       3.90       227,000       1.13       2.21  
8
    810       1.5       34,000       1.38       70,000       4.70       282,000       4.02       2.23  
8
    8       5.1       56,000       1.40       401,000       5.40       319,000       0.80       2.16  
8
    790       1.0       8,000       1.44       12,000       2.00       47,000       4.07       2.16  
SubTotal
                                    8,822,000               19,081,000               2.16  
IMMI. 04-3117
Nariin Sukhait
Technical Report
19-7

 


Table of Contents

Table 19.4
Nariin Sukhait Property
West Field In-Place Coal Resources Summary
                                                                         
                            Specific                            
            Seam     Coal Area     Gravity             Waste     Waste Volume     In-place (BCM/Tonne)  
Seam   SubSeam     Thickness (m)     (m2)     (g/cm3)     In-Place Tonnes     Thickness (m)     (m3)     Incremental     Cumulative  
 
Inferred — Northwest Block
11
    1170       9.2       68,000       1.41       879,000       30.70       2,198,000       2.50       2.50  
11
    1160       3.4       74,000       1.40       353,000       10.20       802,000       2.27       2.43  
11
    1150       2.5       81,000       1.43       292,000       9.20       791,000       2.71       2.49  
11
    1140       1.2       76,000       1.44       131,000       3.40       299,000       2.28       2.47  
11
    1130       18.2       110,000       1.41       2,810,000       5.50       624,000       0.22       1.06  
11
    1120       3.3       115,000       1.42       538,000       9.50       1,119,000       2.08       1.17  
11
    1110       1.9       120,000       1.38       314,000       6.50       890,000       2.83       1.26  
11
    1100       3.1       121,000       1.43       538,000       0.90       102,000       0.19       1.17  
10
    1050       1.8       148,000       1.43       381,000       72.50       10,956,000       28.77       2.85  
10
    1040       2.1       131,000       1.42       390,000       11.90       1,577,000       4.04       2.92  
10
    1030       1.2       97,000       1.46       171,000       3.10       360,000       2.11       2.90  
10
    1020       3.2       113,000       1.40       506,000       8.90       1,015,000       2.01       2.84  
10
    1010       2.6       113,000       1.43       419,000       9.90       1,120,000       2.68       2.83  
10
    10       9.7       93,000       1.41       1,277,000       7.20       810,000       0.63       2.52  
9
    990       2.2       86,000       1.42       268,000       14.00       1,400,000       5.23       2.60  
9
    980       6.0       81,000       1.42       687,000       5.10       440,000       0.64       2.46  
9
    970       1.8       73,000       1.44       190,000       0.70       45,000       0.24       2.42  
9
    960       1.3       46,000       1.45       87,000       3.60       222,000       2.56       2.42  
9
    950       1.5       73,000       1.36       149,000       1.40       95,000       0.64       2.40  
9
    942       2.0       34,000       1.39       95,000       0.80       32,000       0.33       2.38  
9
    940       5.9       65,000       1.40       537,000       1.00       33,000       0.06       2.26  
9
    9       2.7       62,000       1.42       237,000       3.20       194,000       0.82       2.23  
8
    810       1.3       40,000       1.45       75,000       4.50       310,000       4.13       2.25  
8
    8       5.6       49,000       1.41       390,000       3.90       219,000       0.56       2.19  
8
    790       1.0       1,000       1.44       2,000       2.30       87,000       49.13       2.20  
SubTotal
                                    11,715,000               25,739,000               2.20  
 
                                                                       
Total — Measured plus Indicated             66,822,000               104,520,000               1.56  
 
                                                                       
Total — Inferred                     26,806,000               86,879,000               3.24  
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20   OTHER RELEVANT DATA AND INFORMATION
 
    There are no other relevant data and information applicable to this report.
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21   INTERPRETATION AND CONCLUSIONS
 
    The exploration program initiated in February, 2005 and currently ongoing, has been successful in delineating an initial 116 million tonnes of coal classified as measured and indicated resources. Norwest has managed and provided direct supervision of the program from its inception. Norwest has maintained complete control on the data collection, construction of the geologic model, and resource calculation. The geology type for the three resource areas at the Nariin Sukhait Property, the South, East, and West Fields, has been determined to be “complex” based on criteria set forth in the Geological Survey of Canada Paper 88-21. Resource calculations and classification have been done in accordance with National Instrument 43-101.
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22 RECOMMENDATIONS
    Current exploration on the three resource areas is focused on delineating additional measured and indicated resources, and to gain a better understanding of certain structural features. Key areas of interest currently being addressed in exploration are:
    Identify and delineate coal resources in the Nos. 8, 9, and 10 Seams in the South Field
 
    Complete additional drilling in the East Field to further delineate resources and gain a better understanding of structural relationships affecting the coal-bearing sequence Several drill holes in the East Field have had unusually thick coal intercepts in the upper seams believed to be due to tectonic deformation
 
    Complete additional mapping, trenching, and drilling in the West Field to gain a better understanding of the structural setting of the northwest limb of the antiform
 
    Collect additional coal quality data from core drilling in all three resource areas to further characterize the coal resources.
      Exploration is expected to continue through the end of October, 2005. An additional 90 drill holes are expected to be completed by the end of the exploration program. Following the completion of the exploration program, Norwest will prepare a second technical report on the coal resources at Ivanhoe’s Nariin Sukhait Property. It is anticipated that additional resources will be delineated in the South, East, and West Fields. It is also anticipated that coal resources will be identified in other areas of the Nariin Sukhait property. Following the second technical report on resources at Nariin Sukhait, Norwest will prepare a pre-feasibility study for IMMI for the development of a surface mining operation.
 
      Preliminary budgets for the above recommended field and geologic technical reporting through October, 2005 are presented in the following Table 22.1 below.
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Table 22.1
Estimated Expenditures, September through October, 2005
                         
Exploration Component   Cost per Unit     Units     Total $USD  
Drilling
                       
UDR 650 (primary coring rig, per day)
  $ 4,320       60     $ 259,000  
UDR 1000 (r.c.-open hole drilling, per day)
  $ 4,320       60     $ 259,000  
Russian drilling unit (open hole drilling, per day)
  $ 1,000       60     $ 60,000  
 
                       
Drill Support
                       
Bulldozer support — (per day)
  $ 1,560       60     $ 94,000  
Excavator trenching — (per day)
  $ 1,920       60     $ 115,000  
Labor — core logging, sampling, and field supervision (per day)
  $ 4,000       60     $ 240,000  
 
                       
Analytical Testing
                       
Proximate analysis — (per core hole)
  $ ,1750       14     $ 25,000  
Detailed Full Suite Coal Analysis — (per core hole)
  $ 2,000       14     $ 28,000  
Washability and Metallurgical — (per core hole)
  $ 2,000       14     $ 28,000  
Downhole geophysics (per day)
  $ 1,000       60     $ 60,000  
 
                       
Survey
                       
Drill collar survey (all holes)
  $ 10,000       1     $ 10,000  
 
                       
Geologic Modeling
                       
Geological modeling and compilation
  $ 3,5000       1     $ 35,000  
Report preparation
  $ 25,000       1     $ 25,000  
 
                       
Camp Support
                       
Camp personnel and supplies (per day)
  $ ,2000       60     $ 120,000  
Expediting, transportation and communication (5%)
                  $ 68,000  
 
                       
Subtotal
                  $ 1,426,000  
Contingency (15%)
                  $ 214,000  
Total Budget Estimate
                  $ 1,639,000  
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23 REFERENCES
    Canadian Securities Administrators. 2001. National Instrument 43-101 Standards of Disclosure for Mineral Projects, Form 43-101F1, Technical Report, and Companion Policy 43-101CP.
 
    CIM Standing Committee on Reserve Definitions. 2004. CIM Definition Standards on Mineral Resources and Reserves.
 
    J. Dashkhorol, G. Baatar, J.Dashdondov, D. Orgil “Report on results of prospecting and detailed exploration of Nariin Sukhait black coal deposit in Gurvan Tes soum of Umnugobi aimag /resource estimation as of January 1, 1992/” 1992., Ulaanbaatar.
 
    D. Dashtsren and S. Jagar “Report on results of prospecting-revision work done by geological team #5 on coal in Omonogobi aimak” 1971., Ulaanbaatar.
 
    Graham, S.A., Hendrix, M.S., Johnson, C.L., Badamgarav, D., Badarch, G., 2001, “Sedimentary record and tectonic implications of Mesozoic rifting in southeast Mongolia”. Geological Society of America Bulletin, v. 113, no. 12, p. 1560-1579.
 
    Hendrix,M.S. et al., 1996. “Noyon Uul syncline, southern Mongolia: Lower Mesozoic sedimentary record of the tectonic amalgamation of central Asia”. Geological Society of America Bulletin 108 (10) p1256-1274.
 
    Hendrix,M.S. et al., 2001. “Triassic synorogenic sedimentation in southern Mongolia: early effects of intracontinental deformation”. Geological Society of America Memoir 194 p389-412.
 
    Huebeck, C., 2001. “Assembly of central Asia during the middle and late Paleozoic”. Geological Society of America Memoir 194 p.1-21.
 
    Hughes, J.D., Klatzel-Mudry, L., and Nikols, D.J. 1989. “A Standardized Coal Resource/Reserve Reporting System For Canada”, Geological Survey of Canada Paper 88-21.
 
    Lamb, M.A., and Badarch, G., 2001. “Paleozoic sedimentary basins and volcanic arc systems of southern Mongolia: New geochemical and petrographic constraints”. Geological Society of America Memoir 194 p.117-149.
 
    Meng, Q.R., Hu, J.M., Jin, J.Q., Zhang, Y., and Xu, D.F., 2003. “Tectonics of the late Mesozoic wide extensional basin system in the China-Mongolia border region. Basin Research”, v.15, p.397-415.
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    Mineral Resources and Petroleum Authority of Mongolia, 2003. “Coal and oil shale deposits and occurrences of Mongolia”.
 
    Volkhonina.V.S and associates “Report on geological and hydrogeological mapping at scale 1:500000 in South Gobi, People’s Republic of Mongolia” 1951-1952, Ulaanbaatar.
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24 DATE
    The following comprises signed and dated Certificate of Qualifications of the persons who prepared this report.
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CERTIFICATE OF QUALIFICATIONS
    I, Steven B. Kerr, of Salt Lake City, Utah, do hereby certify that:
  1.   I am a Senior Geologist with Norwest Corporation, 136 East South Temple, 12th Floor, Salt Lake City, Utah 84111 USA.
 
  2.   I am a Certified Professional Geologist and a member of the American Institute of Professional Geologists — Registration Number CPG-10352.
 
  3.   I am a licensed Professional Geologist in the states of Alaska — License Number 512, Utah — License Number 5557442-2250, and Wyoming — License Number PG-2756.
 
  4.   I am a graduate of Utah State University (Bachelor of Science, Geology, 1981 and Master of Science, Geology, 1987).
 
  5.   I have practiced my profession as a geologist for 22 years. I have worked on coal properties in the United States of America, Canada, Republic of South Africa, China (PRC), and Mongolia. I have completed investigations on coal properties on behalf of private and public companies. I am a “qualified person” for the purposes of National Instrument 43-101.
 
  6.   I personally have reviewed or supervised the review of the data collected and provided by Norwest Corporation and IMMI. for the Nariin Sukhait property. I participated in the preparation of a technical report concerning the coal geology and coal resources for the area. I am responsible for all sections of this report, except Section 25.
 
  7.   I have no direct or indirect interest in IMMI or any affiliates of it, nor do I expect to acquire any such interest. I am independent of the Company in accordance with the requirements of NI 43-101, Section 1.5.
 
  8.   I have not been restricted in any way in my access to information, data or documents that I consider relevant to this report.
 
  9.   As at the date of this certificate, I am not aware of any material fact or material change, the omission to disclose which would make this report misleading with respect to coal resource estimates and coal ownership.
 
  10.   I have read NI43-101 and Form 43-101F1. The Technical Report is in compliance with NI43-101 and Form 43-101F1.
    Dated at Salt Lake City, Utah this 13th day of October, 2005.
     
 
  /s/ Steven B. Kerr
 
   
 
  Steven B. Kerr, CPG
 
  Senior Geologist
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CONSENT of AUTHOR
TO: The Securities Commission or similar authority in each of the Provinces of Canada
I, Steven B. Kerr, do hereby consent to the filing, with the regulatory authorities referred to above, of the technical report titled Technical Report Nariin Sukhait Property, Mongolia and dated October 13, 2005 (the “Technical Report”) and to the written disclosure of the Technical Report and of extracts from or a summary of the Technical Report in the news release and material change report filed by Ivanhoe Mines Ltd. with the Technical Report.
I also certify that I have read the news release and material change report being filed and I do not have any reason to believe that there are any misrepresentations in the information derived from the Technical Report or the written disclosure in the new release and the material change report of Ivanhoe Mines Ltd. contains any misrepresentation of the information contained in the Technical Report.
Dated this 13th Day of October, 2005.
     
/s/ Steven B. Kerr
   
     
Signature of Qualified Person
   
 
   
Steven B. Kerr, CPG
   
     
Print name of Qualified Person
   
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CERTIFICATE OF QUALIFICATIONS
    I, Richard D. Tifft, III, of Salt Lake City, Utah, do hereby certify that:
  1.   I am Vice President; Geologic Services with Norwest Corporation, 136 East South Temple, 12th Floor, Salt Lake City, Utah 84111 USA.
 
  2.   I am a licensed Professional Geologist in the state of Utah — License Number 5190241-2250.
 
  3.   I am a graduate of Utah State University (Bachelor of Science, 1978, Geology).
 
  4.   I have practiced my profession as a geologist for 26 years. I have worked on coal properties in the United States of America, Canada, India, China (PRC), and Mongolia. I have completed investigations on coal properties on behalf of private and public companies. I am a “qualified person” for the purposes of National Instrument 43-101.
 
  5.   I personally have reviewed or supervised the review of the data collected and provided by Norwest Corporation and IMMI. for the Nariin Sukhait property. I participated in the preparation of a technical report concerning the coal geology and coal resource tonnage for the area. I have conducted several site visits, most recently in August of 2005, and have personally witnessed the exploration activities. I am responsible for all sections of this report, except Section 25.
 
  6.   I have no direct or indirect interest in IMMI or any affiliates of it, nor do I expect to acquire any such interest. I am independent of the Company in accordance with the requirements of NI 43-101, Section 1.5.
 
  7.   I have not been restricted in any way in my access to information, data or documents that I consider relevant to this report.
 
  8.   As at the date of this certificate, I am not aware of any material fact or material change, the omission to disclose which would make this report misleading with respect to coal resource estimates and coal ownership.
 
  9.   I have read NI43-101 and Form 43-101F1. The Technical Report is in compliance with NI43-101 and Form 43-101F1.
    Dated at Salt Lake City, Utah this 13th day of October, 2005.
     
 
  /s/ Richard D. Tifft III
 
   
 
  Richard D. Tifft III, PG
 
  Vice President Geologic Services
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CONSENT of AUTHOR
TO: The Securities Commission or similar authority in each of the Provinces of Canada
I, Richard D. Tifft III, do hereby consent to the filing, with the regulatory authorities referred to above, of the technical report titled Technical Report Nariin Sukhait Property, Mongolia and dated October 13, 2005 (the “Technical Report”) and to the written disclosure of the Technical Report and of extracts from or a summary of the Technical Report in the news release and material change report filed by Ivanhoe Mines Ltd. with the Technical Report.
I also certify that I have read the news release and material change report being filed and I do not have any reason to believe that there are any misrepresentations in the information derived from the Technical Report or the written disclosure in the new release and the material change report of Ivanhoe Mines Ltd. contains any misrepresentation of the information contained in the Technical Report.
Dated this 13th Day of October, 2005.
     
/s/ Richard D. Tifft III
   
     
Signature of Qualified Person
   
 
   
Richard D. Tifft III, PG
   
     
Print name of Qualified Person
   
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CERTIFICATE OF QUALIFICATIONS
    I, Patrick P. Riley of Lakewood, Colorado, do hereby certify that:
  1.   I am a Senior Associate Geologist with Norwest Corporation, 136 East South Temple, 12th Floor, Salt Lake City, Utah 84111 USA.
 
  2.   I am a Certified Professional Geologist and a member of the American Institute of Professional Geologists — Registration Number CPG-7031.
 
  3.   I am a licensed Professional Geologist in the states of Kentucky — License Number KY-0854, Pennsylvania — Licence Number PG-003078-G, and Wyoming — License Number CPG-7031.
 
  4.   I am a graduate of Marshall University (Bachelor of Science, Geology, 1977).
 
  5.   I have practiced my profession as a geologist for 28 years. I have worked on coal properties in the United States of America, Australia, Canada, Colombia, Chile, China (PRC), Mexico, Venezuela, Philippines, and Mongolia. I have completed investigations on coal properties on behalf of private and public companies. I am a “qualified person” for the purposes of National Instrument 43-101.
 
  6.   I personally have reviewed or supervised the review of the data collected and provided by Norwest Corporation and IMMI for the Nariin Sukhait property. I participated in the preparation of a technical report concerning the coal geology and coal resource tonnage for the area. I am responsible for all sections of this report, except Section 25.
 
  7.   I have no direct or indirect interest in IMMI or any affiliates of it, nor do I expect to acquire any such interest. I am independent of the Company in accordance with the requirements of NI 43-101, Section 1.5.
 
  8.   I have not been restricted in any way in my access to information, data or documents that I consider relevant to this report.
 
  9.   As at the date of this certificate, I am not aware of any material fact or material change, the omission to disclose which would make this report misleading with respect to coal resource estimates and coal ownership.
 
  10.   I have read NI43-101 and Form 43-101F1. The Technical Report is in compliance with NI43-101 and Form 43-101F1.
    Dated at Salt Lake City, Utah this 13th day of October, 2005.
     
 
  /s/ Patrick P. Riley
 
   
 
  Patrick P. Riley, CPG
 
  Senior Geologist
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CONSENT of AUTHOR
TO: The Securities Commission or similar authority in each of the Provinces of Canada
I, Patrick P. Riley, do hereby consent to the filing, with the regulatory authorities referred to above, of the technical report titled Technical Report Nariin Sukhait Property, Mongolia and dated October 13, 2005 (the “Technical Report”) and to the written disclosure of the Technical Report and of extracts from or a summary of the Technical Report in the news release and material change report filed by Ivanhoe Mines Ltd. with the Technical Report.
I also certify that I have read the news release and material change report being filed and I do not have any reason to believe that there are any misrepresentations in the information derived from the Technical Report or the written disclosure in the new release and the material change report of Ivanhoe Mines Ltd. contains any misrepresentation of the information contained in the Technical Report.
Dated this 13th Day of October, 2005.
     
/s/ Patrick P. Riley
   
     
Signature of Qualified Person
   
 
   
Patrick P. Riley, CPG
   
     
Print name of Qualified Person
   
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25   ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES AND PRODUCTION PROPERTIES
 
    The Nariin Sukhait Property is currently an undeveloped property with no production.
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26 ILLUSTRATIONS
FIGURE 3.1 LOCATION MAP
FIGURE 3.2 COAL ZONE STRATIGRAPHY
FIGURE 3.3 IMMI RESOURCE AREAS AND EXPLORATION PROSPECTS
FIGURE 3.4 SOUTH FIELD IN-PLACE RESOURCES
FIGURE 3.5 EAST FIELD IN-PLACE RESOURCES
FIGURE 3.6 WEST FIELD IN-PLACE RESOURCES
FIGURE 4.1 LOCATION MAP
FIGURE 6.1 IMMI NARIIN SUKHAIT LICESE AREAS
FIGURE 7.1 SOUTHERN MONGOLIA INFRASTRUCTURE
FIGURE 9.1 COAL BEARING PROVINCES OF MONGOLIA
FIGURE 9.2 OBOTO HURAL BASIN GEOLOGY MAP
FIGURE 9.3 COAL ZONE STRATIGRAPHY
FIGURE 9.4 RESOURCE AREAS
FIGURE 9.5 SOUTH AND EAST FIELDS EXPLORATION GEOLOGY MAP
FIGURE 9.6 SOUTH AND EAST FIELDS GEOLOGIC CROSS SECTIONS
FIGURE 9.7 WEST FIELD EXPLORATION GEOLOGY MAP
FIGURE 9.8 WEST FIELD GEOLOGIC CROSS SECTIONS
FIGURE 18.1 SOUTH AND EAST FIELDS CORE QUALITY CORE HOLES
FIGURE 18.2 WEST FIELD CORE QUALITY CORE HOLES
FIGURE 18.3 FSI VALUES FROM INCREMENTAL SAMPLES, NO. 5 SEAM, SOUTH FIELD
FIGURE 18.4 FSI VALUES FROM INCREMENTAL SAMPLES, UPPER SEAMS, EAST FIELD
FIGURE 19.1 SOUTH FIELD IN-PLACE RESOURCES
FIGURE 19.2 EAST FIELD IN-PLACE RESOURCES
FIGURE 19.3 WEST FIELD IN-PLACE RESOURCES
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(MONGOLIA LOCATION MAP)

 


Table of Contents

(COAL ZONE STRATIGRAPHY FIGURE)

 


Table of Contents

(NARIIN SUKHAIT & MAK MINING LEASE MAP)

 


Table of Contents

(SOUTH FIELD IN PLACE RESOURCES MAP)

 


Table of Contents

(EAST FIELD IN PLACE RESOURCES MAP)

 


Table of Contents

(WEST FIELD IN PLACE RESOURCES MAP)

 


Table of Contents

(MONGOLIA LOCATION MAP)

 


Table of Contents

(COAL OWNERSHIP MAP)

 


Table of Contents

(REGIONAL INFRASTRUCTURE MAP)

 


Table of Contents

(MAJOR COAL BASINS OF MONGOLIA MAP)

 


Table of Contents

(OBO TO HURAL BASIN MAP)

 


Table of Contents

(COAL ZONE STRATIGRAPHY FIGURE)

 


Table of Contents

(RESOURCE AREAS MAP)

 


Table of Contents

(SOUTH & EAST FIELD EXPLORATION GEOLOGY MAP)

 


Table of Contents

(GEOLOGIC CROSS SECTION MAP)

 


Table of Contents

(WEST FIELD EXPLORATION GEOLOGY MAP)

 


Table of Contents

(GEOLOGIC CROSS SECTIONS MAP)

 


Table of Contents

(SOUTH & EAST FIELD QUALITY CORE HOLES MAP)

 


Table of Contents

(WEST FIELD QUALITY CORE HOLES MAP)

 


Table of Contents

(FSI VALUES GRAPH)
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(SOUTH FIELD IN PLACE RESOURCES MAP)

 


Table of Contents

(EAST FIELD IN PLACE RESOURCES MAP)

 


Table of Contents

(WEST FIELD IN PLACE RESOURCES MAP)