Hunnu annouces massive resource increase

Perth based junior explorer Hunnu Coal has announced an 85 per cent increase in its resource estimate for its Tsant Uul coal project in Mongolia.

Hunnu reported today that updated resources estimates put the JORC reported coal resource at Tsant Uul was 167.1 megatonnes, with 93.8MT classified as measured and indicated.

The company is targeting commencement of mining in the last quarter of this year, with initial; production of 1.5MT of coal in 2012, ramping up to 3MT in 2013.

It said it was in advanced discussions for off-take agreements for the project.

The resource upgrade gives Hunnu a total of 843MT JORC resources across all of its projects in Mongolia.

Its stock gained 2.9 per cent today, to trade at $1.41.