Modun Resources stocks rose today after the Perth-based coal explorer announced a maiden 489 million tonne JORC-compliant resource at its flagship Nuurst coal project in Mongolia.
In early trade today Modun shares rose as much as ten per cent, but by the end of trading had given up some of those gains to finish up 7.6 per cent at 5.6 cents.
Modun said the resource estimate at Nuurst was double its previous targets, and confirmed the potential of the deposit to be developed into a large-scale thermal coal mine.
The project is located near rail infrastructure, with a rail link just 6 kilometres away from the mine.
“The JORC-reportable coal resource has confirmed our belief that we have a valuable asset to develop,” managing director Chris Mardon said in a statement.
“The close proximity to infrastructure and a major coal market adds to the potential for a large-scale project.
“These results propel Modun to having one of the largest tonnage coal resources of the ASX-listed companies currently operating in Mongolia.
Mr Mardon said the company believed there was significant further upside in the project, with the Nuurst deposit taking up just 16 per cent of its licence area.
