Saturday, January 5, 2008

Ovoot Tolgoi explorations clears way for $5 million drilling program

Exploration results from 2007 drilling programs at Mongolia’s Ovoot Tolgoi are indicating very high quality coal deposits, according to SouthGobi Energy Resources Ltd.

The Canadian-based company issued a statement on Tuesday saying drilling at their Ovoot Tolgoi site explored deposits at depths of over 200 meters. Officials said the findings provided “encouraging initial geologic and analytical results.”

It is expected that such positive results will clear the way for the beginning of a $5 million drilling program to begin in the second quarter of 2008.

More specifically, company statements said the high quality coal samples contained very low ash and sulphur.

“The 2007 drill results continue to identify direct shipping coking and semi-soft coals at depth, beneath the lower boundaries of the planned open pits at the south-east and west fields. The intent of the 2007 drilling program was to further delineate the structure, quantity and quality of the coal at depth.”

Ivanhoe Mines (TSX:IVN)(NYSE:IVN)(NASDAQ:IVN) is SouthGobi Energy Resources' largest shareholder, owning approximately 87 percent of the company’s shares.


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