nru breakout next stop 4.2 then 5 then 7.5c, page-3

Some great info here people about the potential of this resource nru is establishing. Below is info posted by southgobi resources 2 days ago.
Of particular significance is the mention of-

Rapidly growing infrastructure in china to access to Mongolian coal and the section on product enhancing and wet washing where the
Ability to turn higher ash coal into semi soft cloaking coals
and reducing ash to about 8 - 11 percent.
To view this release in more detail just google Mongolian coal and it's the first article dated 11.12,2012. This is just looking better and better, this market cap will no doubt re rate big time soon enough.

Mongolia's vast reserves of high-quality coal, combined with its close proximity to China, the world's largest consumer of coal, and high demand Asian markets - make Mongolia a growing strategic player in the global coal market. Mongolia plays an important, expanding role in powering China's heavy industries and coal-fired generating capacity.

Infrastucture to access Mongolian coal is rapidily developing in China. A Chinese steel mill already has built a railway line to the Ceke border point, where a major automated railcar coal loading facility exists. A second railway line from Ceke,PRC to the industrial city of Linhe,PRC also has been completed. The Mongolian government has designated the Shivee Khuren (Ceke) border crossing a permanent border crossing which allows for distribution of Ovoot Tolgoi coal to customers in China.

Mongolia and North China Provinces near SouthGobi's Assets
click to enlarge



A LEADING EXPORTER

SouthGobi is one of the largest coal producers in Mongolia. Operations focus on mining, development and exploration of coking and thermal coals in Mongolia's South Gobi Province to supply premium quality coals to customers in China.

SouthGobi owns four significant coal projects in Mongolia: a producing mine, the Ovoot Tolgoi Mine; and three development projects, the Soumber Deposit, Zag Suuj Deposit and the Ovoot Tolgoi Underground Deposit. In addition, SouthGobi holds 7 mineral exploration licenses in Mongolia. Each of these assets is wholly-owned by the Company.

LEADING POSITION IN THE OVOOT KHURAL BASIN

Importance of the Ovoot Khural Basin:

*Permian-age coal bearing basin only 40 km from China
*Coal identified over 150 km strike length
*Land equivalent to prime hard coking coal region of Bowen Basin in Australia (largest seaborne coking coal exporting region today)
*Rail infrastructure and coal loader constructed by Chinese to access

SouthGobi's leadership in the Ovoot Khural Basin:

*Substantially covered by SouthGobi's exclusive mining and exploration licences
*89% of SouthGobi's resources located there
*Operating infrastructure in place

Extracting full value from the Ovoot Khural Basin:

*Expanding production at Ovoot Tolgoi Mine
*Advancing regional coal projects -- near-term emphasis on Soumber
*Developing Ovoot Khural Basin infrastructure
*Enhancing value of our products - screening and washing
*Exploration
*Continuing focus on operational excellence

Three coal products are presently being mined or are expected to be produced at Ovoot Tolgoi and Soumber; a hard coking (or metallurgical) coal (Soumber), a direct shipping semi-soft coking coal (#5 seam - Ovoot Tolgoi), medium ash coal (screened) and a higher ash/sulphur coal (screened). Dry air separation and washing (8,9,10 seam coal) will upgrade the coal to semi-soft coking coal.

Enhancing Product Value

To further enhance product value, SouthGobi has constructed and commissioned a dry coal-handling facility ("DCHF") at Ovoot Tolgoi. The coal-handling facility will remove ash (waste rock) and enable the blending of coals from different seams to create higher-value products.

The DCHF has a capacity to process nine million tonnes of run-of-mine (ROM) coal per year. The facility includes a 300-tonne-capacity dump hopper, which will receive ROM coal to feed a rotary breaker and screens that will size coal to a maximum of 50 millimetres and reject oversize ash.

Given the potential to turn the higher-ash Sunset pit No. 8/9/10 seams coals into semi-soft coking coals at a relatively high yield, it is likely a wet-washing facility will be built at Ovoot Tolgoi in addition to the dry-air separation plant.

The DCHF will be upgraded during 2012 to include dry air separation, as well as covered load-out conveyors with fan stackers to transfer processed coals to stockpiles that will enable blending.

Wet Washing

On July 5, 2011, the company entered into an agreement with Ejin Jinda, a subsidiary of China Mongolia Coal Co. Ltd. (CMC), to toll wash coal from the Ovoot Tolgoi mine. The agreement has a duration of five years from commencement (expected in early 2012) and provides for an annual wet washing capacity of approximately 3.5 million tonnes of input raw coal. Raw higher-ash and medium-ash coals from the Ovoot Tolgoi mine will be washed at this facility. Washed coal will generally meet semi-soft coking coal specifications.

Ejin Jinda's wet washing facility is located approximately 10 kilometres inside China from the Mongolia-China border crossing at Shivee Khuren-Ceke (that is, approximately 50 kilometres from the Ovoot Tolgoi mine). Raw higher-ash and medium-ash coals with only basic processing through Ovoot Tolgoi's on-site dry coal handling facility will be transported from the Ovoot Tolgoi mine to the facility under a separate transport agreement. Based on preliminary samples, the company expects these coals can then be washed to produce coals with ash in the range of 8 per cent to 11 per cent at a yield of 85 per cent to 90 per cent. Ejin Jinda will charge the company a single toll washing fee which will cover its expenses, capital recovery and profit.