7 Jul 2008 10:07
7 July 2008
Polo Resources Limited ("Polo Resources" or "the Company")
POSITIVE INITIAL RESULTS FROM UNION COAL MINE DRILL PROGRAMME
Polo Resources (AIM:PRL), the natural resources investment and mining company, has received assay results for the first 11 holes of its recent 40 diamond drill hole programme at the Union Coal Mine in Mongolia. The Company recently announced the completion of the 40 diamond drill hole programme which was to define a thick coal seam that dips westward from surface. These initial results indicate the presence of low ash thermal coal suitable for the Chinese power generation market. Sulphur levels are acceptable and inherent moisture contents are low to moderate. The Company is currently evaluating a restart of production at the Union Mine and SRK Consulting has been engaged to model the coal resources and assist in the design of an open-pit mine. Polo Resources is advancing the study of resources, mining and permitting at the Union coal mine in preparation for a re-start of production at the mine.
The Union Coal Mine consists of two mining licenses and three exploration licenses covering 14.61km2 and was in production
prior to its acquisition by Polo in early 2008. The mine is situated 113 kilometres southeast of the capital city of Ulaanbaatar, Mongolia and 14 kilometres from a rail loading facility linked to the Trans-Siberian Railway. Plans are underway to explore the remaining four licenses held by Polo Resources.
Neil Herbert, Deputy Chairman of Polo Resources, said:
"This drill programme has demonstrated that there is sufficient coal of both quality and quantity to sustain a substantial mining operation at Union and as a result we are actively evaluating an early re-start of production at the Mine."
RESULTS FROM UNION THERMAL COAL PROJECT
| HOLE No. | EAST (UTM) | NORTH (UTM) | ELEVATION (m) | END OF HOLE (m) | DEPTH TO | DEPTH FROM | INTERVAL (M) | W (ad) | A (ad*) | A (d) | V (ad) | V (daf*) | FC (ad) | S (ad) | S (daf) | Q (ad) | Q (daf) |
| 001 | 718216 | 5241351 | 1377.70 | 213.30 | 65.9 | 66.8 | 0.9 | 6.99 | 18.73 | 20.14 | 39.62 | 53.34 | 34.66 | 1.05 | 1.13 | 4844 | 6521 |
|
| 71.0 | 72.0 | 1.0 | 6.30 | 13.41 | 14.31 | 40.42 | 50.34 | 39.87 | 0.96 | 1.02 | 5369 | 6687 | ||||
|
| 100.2 | 102.4 | 2.2 | 6.28 | 16.00 | 17.07 | 40.19 | 51.73 | 37.54 | 1.26 | 1.34 | 5167 | 6671 | ||||
|
| 123.5 | 126.0 | 2.5 | 9.31 | 9.70 | 10.58 | 39.04 | 48.24 | 41.96 | 1.25 | 1.38 | 5637 | 6951 | ||||
|
| 127.0 | 137.5 | 10.5 | 7.57 | 9.66 | 10.44 | 40.25 | 48.62 | 42.52 | 1.17 | 1.27 | 5670 | 6849 | ||||
|
| 139.0 | 139.9 | 0.9 | 6.93 | 16.47 | 17.70 | 38.27 | 49.96 | 38.33 | 1.19 | 1.28 | 5295 | 6913 | ||||
|
| 143.4 | 144.4 | 1.0 | 8.23 | 9.08 | 9.89 | 40.39 | 48.85 | 42.30 | 1.28 | 1.39 | 5726 | 6925 | ||||
|
| 146.4 | 147.4 | 1.0 | 5.45 | 20.43 | 21.61 | 37.15 | 50.12 | 36.97 | 1.31 | 1.39 | 5568 | 7512 | ||||
|
| 150.0 | 164.0 | 14.0 | 6.41 | 11.05 | 11.80 | 40.63 | 49.21 | 41.92 | 1.09 | 1.16 | 5580 | 6760 | ||||
|
| 164.0 | 166.0 | 2.0 | 5.75 | 17.04 | 18.02 | 37.62 | 48.76 | 39.60 | 1.16 | 1.24 | 5214 | 6751 | ||||
|
| 168.0 | 183.0 | 15.0 | 7.05 | 12.99 | 13.95 | 40.61 | 50.81 | 39.35 | 1.27 | 1.37 | 5392 | 6742 | ||||
|
| 184.0 | 185.0 | 1.0 | 8.05 | 12.35 | 13.43 | 32.04 | 40.25 | 47.56 | 1.75 | 1.90 | 5356 | 6729 | ||||
|
|
|
|
|
| 187.0 | 211.6 | 24.6 | 6.79 | 11.07 | 11.86 | 39.93 | 48.69 | 42.22 | 1.06 | 1.14 | 5555 | 6759 |
| 002 | 718172 | 5243384 | 1382.70 | 162.00 | 28.0 | 30.0 | 2.0 | 3.70 | 14.59 | 15.18 | 44.37 | 54.19 | 37.36 | 1.43 | 1.48 | 5202 | 6357 |
|
| 40.1 | 43.1 | 3.0 | 4.23 | 9.28 | 9.68 | 47.77 | 55.23 | 38.73 | 2.31 | 2.41 | 5402 | 6245 | ||||
|
| 56.0 | 57.6 | 1.6 | 2.81 | 9.39 | 9.66 | 47.24 | 53.80 | 40.57 | 1.48 | 1.52 | 5626 | 6407 | ||||
|
| 66.4 | 71.0 | 4.6 | 3.17 | 12.91 | 13.35 | 45.04 | 53.69 | 38.89 | 2.29 | 2.36 | 5286 | 6299 | ||||
|
| 82.0 | 89.0 | 7.0 | 3.43 | 11.12 | 11.49 | 42.49 | 49.71 | 42.97 | 0.98 | 1.01 | 5324 | 6229 | ||||
|
| 127.4 | 128.4 | 1.0 | 4.04 | 11.43 | 11.91 | 41.92 | 49.59 | 42.61 | 1.51 | 1.57 | 5583 | 6605 | ||||
|
|
|
|
|
| 132.4 | 141.0 | 8.6 | 3.34 | 9.82 | 10.18 | 43.24 | 49.76 | 43.60 | 0.83 | 0.85 | 5614 | 6473 |
| 003 | 102.2 | 107.0 | 4.8 | 5.35 | 12.17 | 12.82 | 38.38 | 46.58 | 44.10 | 0.60 | 0.63 | 5413 | 6570 | ||||
|
|
|
|
|
| 113.2 | 118.9 | 5.7 | 4.69 | 7.07 | 7.41 | 40.34 | 45.72 | 47.91 | 0.36 | 0.38 | 5780 | 6550 |
| 004 | 718494 | 5240600 | 1379.20 | 201.00 | 96.0 | 100.0 | 4.0 | 5.96 | 9.56 | 10.18 | 38.50 | 45.63 | 45.99 | 0.52 | 0.57 | 5606 | 6643 |
|
| 107.6 | 124.0 | 16.4 | 6.73 | 7.54 | 8.08 | 39.42 | 45.98 | 46.32 | 0.26 | 0.30 | 5589 | 6522 | ||||
|
|
|
|
|
| 137.6 | 139.9 | 2.3 | 5.24 | 10.47 | 11.04 | 38.44 | 45.61 | 45.85 | 0.44 | 0.46 | 5674 | 6731 |
| 005 | 718544 | 5240600 | 1378.50 | 150.60 | 88.6 | 89.6 | 1.0 | 5.13 | 7.42 | 7.82 | 42.23 | 48.29 | 45.22 | 0.12 | 0.13 | 5828 | 6664 |
|
|
|
|
|
| 92.6 | 133.6 | 41.0 | 6.56 | 10.01 | 10.69 | 38.31 | 45.93 | 45.12 | 0.46 | 0.49 | 5532 | 6633 |
| 006 | 718314 | 5241364 | 1373.70 | 216.60 | 69.6 | 70.8 | 1.2 | 6.16 | 17.37 | 18.51 | 39.94 | 52.23 | 36.53 | 1.04 | 1.11 | 4807 | 6286 |
|
| 106.4 | 112.4 | 6.0 | 7.80 | 8.22 | 8.91 | 43.60 | 51.92 | 40.38 | 1.25 | 1.35 | 5445 | 6484 | ||||
|
| 114.5 | 117.8 | 3.3 | 8.56 | 13.91 | 15.23 | 41.08 | 53.08 | 36.46 | 1.46 | 1.59 | 4952 | 6378 | ||||
|
| 119.6 | 121.6 | 2.0 | 7.53 | 11.07 | 11.96 | 42.18 | 51.81 | 39.23 | 0.93 | 1.01 | 5207 | 6397 | ||||
|
| 123.4 | 141.6 | 18.2 | 10.15 | 10.79 | 11.99 | 38.85 | 49.12 | 40.21 | 1.36 | 1.52 | 5319 | 6729 | ||||
|
| 143.6 | 164.7 | 21.1 | 12.43 | 8.38 | 9.54 | 37.47 | 47.38 | 41.72 | 1.22 | 1.39 | 5426 | 6850 | ||||
|
|
|
|
|
| 175.6 | 176.8 | 1.2 | 11.72 | 11.31 | 12.81 | 35.47 | 46.08 | 41.50 | 3.73 | 4.23 | 5366 | 6972 |
| 007 | 718488 | 5241383 | 1361.55 | 250.00 | 6.6 | 12.6 | 6.0 | 5.50 | 10.26 | 10.86 | 41.15 | 48.81 | 43.11 | 1.05 | 1.11 | 5520 | 6552 |
|
|
|
|
|
| 196.4 | 198.4 | 2.0 | 5.33 | 9.49 | 10.02 | 37.68 | 44.23 | 47.51 | 1.02 | 1.08 | 5808 | 6817 |
| 008 | 718393 | 5241374 | 1369.60 | 200.00 | 81.9 | 105.6 | 23.7 | 4.61 | 12.43 | 13.04 | 42.03 | 51.21 | 40.93 | 1.20 | 1.26 | 5302 | 6417 |
|
|
|
|
|
| 113.6 | 132.0 | 18.4 | 4.68 | 8.38 | 8.78 | 41.62 | 47.87 | 45.32 | 0.96 | 1.00 | 5464 | 6288 |
| 009 | 718607 | 5241396 | 1373.30 | 129.60 | HYDROLOGY HOLE |
| |||||||||||
| 010 | 718145 | 5241350 | 1377.80 | 266.50 | 159.9 | 161.9 | 2.0 | 9.48 | 11.47 | 12.67 | 37.78 | 47.79 | 41.28 | 1.03 | 1.13 | 5288 | 6689 |
|
| 162.9 | 177.6 | 14.7 | 11.41 | 9.88 | 11.14 | 36.78 | 46.74 | 41.94 | 0.92 | 1.03 | 5367 | 6814 | ||||
|
| 182.6 | 188.6 | 6.0 | 11.60 | 8.44 | 9.53 | 38.00 | 47.52 | 41.97 | 0.85 | 0.96 | 5432 | 6792 | ||||
|
| 190.6 | 192.6 | 2.0 | 10.57 | 14.59 | 16.31 | 34.62 | 46.27 | 40.23 | 0.87 | 0.97 | 5219 | 6974 | ||||
|
| 193.6 | 199.6 | 6.0 | 10.00 | 12.52 | 13.88 | 35.73 | 46.14 | 41.76 | 1.61 | 1.77 | 5327 | 6869 | ||||
|
| 200.6 | 204.6 | 4.0 | 8.77 | 12.52 | 13.70 | 37.06 | 47.12 | 41.65 | 1.27 | 1.39 | 5359 | 6801 | ||||
|
| 206.6 | 213.6 | 7.0 | 9.46 | 11.16 | 12.31 | 35.10 | 44.27 | 44.28 | 0.88 | 0.97 | 5307 | 6685 | ||||
|
| 214.6 | 216.6 | 2.0 | 9.77 | 6.24 | 6.91 | 36.18 | 43.07 | 47.82 | 1.13 | 1.25 | 5603 | 6671 | ||||
|
| 218.6 | 229.6 | 11.0 | 16.13 | 10.44 | 12.44 | 33.98 | 46.32 | 39.45 | 0.89 | 1.06 | 4993 | 6801 | ||||
|
| 230.6 | 235.6 | 5.0 | 15.73 | 8.29 | 9.89 | 33.34 | 43.87 | 42.64 | 0.54 | 0.64 | 5324 | 6996 | ||||
|
|
|
|
|
| 236.6 | 244.6 | 8.0 | 14.48 | 8.02 | 9.28 | 33.92 | 43.85 | 43.58 | 0.64 | 0.75 | 5379 | 6935 |
| 011 | 718507 | 5243351 | 1381.30 | 201.60 | 57.6 | 58.6 | 1.0 | 11.07 | 15.95 | 17.94 | 32.25 | 44.19 | 40.73 | 3.88 | 4.36 | 4987 | 6833 |
|
| 65.5 | 67.5 | 2.0 | 12.89 | 10.07 | 11.57 | 34.21 | 44.43 | 42.85 | 1.44 | 1.66 | 5206 | 6761 | ||||
|
| 126.3 | 137.1 | 10.8 | 10.67 | 13.54 | 15.18 | 37.80 | 49.92 | 37.98 | 1.08 | 1.21 | 5124 | 6755 | ||||
|
|
|
|
|
| 154.5 | 159.5 | 5.0 | 11.41 | 10.09 | 11.36 | 38.13 | 48.57 | 40.38 | 1.24 | 1.40 | 5226 | 6658 |
| WEIGHTED AVERAGE |
| 8.00 | 10.54 | 11.44 | 39.21 | 48.17 | 42.25 | 1.00 | 1.09 | 5414 | 6653 | ||||||
Highlighted Seams are above 5,500 kcal/kg air dried coal.
Coal Types
| COAL TYPE | WATER %(ad) | Ash% (ad) | Volatile% (ad) | Sulphur% (ad) | Q(ad) kcal/kg | Q(daf) Kcal/kg |
| COAL 'A' | 6.35 | 9.85 | 35.7 | 0.75 | 5587 | 6670 |
| COAL 'B' | 9.66 | 11.2 | 42.8 | 1.24 | 5245 | 6634 |
* denotes ad = "air dried basis", daf = "dried ash free basis"
The information contained in this announcement has been reviewed by Paul Ingram, CEO & Director of Polo, P.Geo, AIMM, MICA, BSc Geo. Mr. Ingram has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Qualified Person for the purposes of this announcement.
Contacts:
| Polo Resources Limited Neil Herbert, Deputy Chairman | Tel: +27 11 269 4906 |
| Canaccord Adams Ryan Gaffney | Tel +44 (0) 207 050 6500 |
| Financial Dynamics Ben Brewerton Edward Westropp | Tel: +44 (0) 20 7831 3113 |
About the Company
Polo is an emerging energy company focused on acquiring and developing advanced stage coal and uranium properties in Asia, Australia and Africa. For complete details on Polo Resources Limited, management encourages investors and interested parties to view its public documents at www.poloresources.com.
CAUTIONARY STATEMENT
The AIM Market of the London Stock Exchange plc does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future plans and objectives of Polo Resources Limited. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Polo Resources Limited assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.