SouthGobi Energy Resources Ltd. (SGQ.TO) has been issued a mining license for its wholly owned Mongolian operating subsidiary SouthGobi Sands by the Mineral Resource Authority of Mongolia. Shares in the company rose by 5 cents after the announcement to end up at $10.75.
The new mining license is related to the Soumber Deposit which has estimated measured and indicated resources of 61.4 million tonnes and 65.8 million tonnes of inferred resources. SouthGobi plans to complete a Pre-Feasibility Study on the deposit and include the inaugural reserve report when it updates resources and reserves next year.
Alexander Molyneux, President and CEO said that with the granting of the Soumber mining license, we can immediately finalize plans for mine development at Soumber. He added that Soumber will likely have an integrated coal processing facility and will require around two years of development for first clean coal production.
SouthGobi Resources is focused on exploration and development of its Permian-age metallurgical and thermal coal deposits in Mongolia's South Gobi Region. The company's flagship coal mine, Ovoot Tolgoi, is producing and selling coal to customers in China. The company plans to supply a wide range of coal products to markets in Asia.