A solid quarterly report released yesterday. Look at that cash...

A solid quarterly report released yesterday. Look at that cash in the bank (2.84m) and the very reasonable exploration expenditure (804k). More options being converted later this year will likely add to a very healthy cash balance.

One piece that caught my attention was this: ‘To date, the processing and interpretation of the seismic has identified a number of new well locations. One of these is being drilled as at the date of this report.’ That would be Hutul 1S which is being drilled by the Schramm rig. I didn’t think they had run seismic over the central Hutul / Nomgon area, as I don’t remember seeing this in previous announcements. That’s great as surface expressions of coal and field work can only tell so much. What they have seen there on the seismic must have been fairly encouraging for them to drill it so promptly.

I’m unsure if Nomgon 5S had seismic completed over it. Nonetheless it’s very promising that they are persisting with it, they are likely to have collated valuable information already during the first drill.

In case of strat hole success in Nomgon 5S (appraisal) and Hutul 1S (exploration) I would expect these to be followed up expeditiously with fully tested core holes to build upon the contingent resource.

Also, the eastern Temee CBM prospect looks very enticing as the next potential focus area. It had seismic run over it during the 2020 round. Look at the size of that sub-basin in their presentations, undoubtedly being roamed by Temee (Mongolian for camels). If they can replicate what they have found at the far western end of the Nomgon area, then we could be in for a sizeable contingent resource. All up we could be talking one significant basin rather that a few sub-basins.

Map below for easy reference:


IMO news could come sooner than some think. The exact spudding date for the Nomgon 5S redrill is uncertain and the Schramm drilling rig on Hutul-1 is high powered. GLTAH