Gobi News

Shinejinst Project 

Shinejinst - Overview

The Shinejinst project is located approximately 210 km South of the local capital of Bayankhongor in the Bayankhongor province and 300 km from the Chinese border crossing of Ceke.  Exploration work within the area has identified 95 million tonnes of JORC reserves and 225 million tonnes of JORC resources in 5 main seams with a total average coal thickness of 36 meters. 

A mining license was granted in 2007, a feasibility study was completed in 2011, and all permits are in place to commence production.  Production is expected to ramp up to 5 million tons per annum of high quality coking coal product with a mine life of 15 years.  While initial production may be trucked to the Chinese border, the Shinejinst project will benefit in the future as it is strategically located on the new Mongolia Railway System announced by the government. 

Shinejinst 1.jpg

FIGURE: ShineJinst mine

 

FIGURE: SHINEJINST MINE

Shinejinst - Development

♦  Mining License issued in 2007

♦  Feasibility study completed in April 2011

♦  Construction of a haul road commenced in November of 2011 and a preliminary 289 km pilot road connecting Shinejinst to the link road between Naran Sukhait and the Chinese border has been completed (upgrading required)

♦  Starter pit has been prepared for mining operations

♦  Bulk samples have been delivered to potential customers and extremely positive feedback and strong interest have been received

♦  GCE purchased a small mining fleet comprised of a 125 tonne excavator, four 100 tonne mining trucks, a 40 tonne dozer, a fuel truck, and a road watering truck

 

FIGURE: SHINEJINST ROAD CONSTRUCTION

 

FIGURE: PIT PREPARATION

 

FIGURE: PIT PREPARATION

 

FIGURE: PIT PREPARATION

 

FIGURE: MINING TRUCKS

 

FIGURE: ROM COAL

 

Shinejinst - Resources & Coal Quality

Over 200 drillholes have been completed within the Shinejinst mine area and five major seams have been identified.  The L, M, N, O, and P seams have a combined total average thickness of 36 meters of coal.  95 million tonnes of JORC reserves and 225 million tonnes of JORC resources (125MT measured and indicated, 100MT inferred) have been defined.  105 million tonnes of the measured and indicated resource base is located above 300m and is suitable for open pit mining.

FIGURE: shinejinst coal sequence

FIGURE: shinejinst RESOURCE BASE

 

Shinejinst will produce an export quality semi-soft coking coal product suitable for the northern Chinese coal market. Target markets include Gansu, Inner Mongolia, and Xinjiang.

CSN

G Index

Y Value

Gross Calorific Value (ad)

Volatile Matter (daf)

Ash (ad)

Total Sulphur (ad)

5-7

70-80

13 - 16 mm

7500-7700 kcal/kg

35-37%

<10%

0.3-0.5%

FIGURE: SHINEJINST TARGET PRODUCT COAL QUALITY