Ulaan Ovoo (Coal Mongolia)

Product Offering:

5,000 kcal/kg GCV coal

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0.8% sulphur

,

8% ash

size 0-30mm price 72,500 mnt / tonne + 10% VAT (Sukhbaatar station free on rail)
size 30-70mm price 72,500 mnt / tonne + 10% VAT (Sukhbaatar station free on rail)

Pictures of coal

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SGS assay report

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Sukhbaatar station map

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10% VAT does not apply to export sales
Volume discount may apply
Please contact sales@prophecycoal.com for further information

Overview:

  • Ulaan Ovoo summary
  • In November 2013, Prophecy resumed mining operations at its Ulaan Ovoo (100% interest) coal mine in Mongolia. The mine restart plan has been on time and on budget.

    The coal is trucked 120km to to the Sukhbaatar rail siding, which is then is transported by rail to Russian and Mongolian customers. The company expects to mine and transport approximately 30,000 to 50,000 tonnes of coal per month with 300,000 to 500,000 tonne target in 2014.

    Since 2010, the Company has invested over $55 million at Ulaan Ovoo. This includes road and bridge construction, mining vehicles, mining camp, pre-stripping, and other infrastructure and community improvement. The Ulaan Ovoo thermal coal mine is strategically located 17 km from the Russian border and 120 km from both Mongolian and Russian rail links. Wardrop Engineering (Tetra Tech) estimated 174 Mt of measured and 34 Mt of indicated coal resources in an NI 43-101 report in 2010. The coal is bituminous (5,040 kcal/kg), low ash (11.3%), low sulphur (0.40%), and suitable for export. The mine features a single massive coal seam that is 45-80 m thick with an average strip ratio of 1.8:1. The first 8 years of mining requires no coal washing.

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    Highlights:

    • 174 Mt of measured and 34 Mt of indicated coal resources (NI43-101 compliant)
    • Bituminous (5,040 kcal/kg), low ash (11.3%), low sulphur (0.40%) thermal coal suitable for export
    • Single massive coal seam 45-80 m thick with an average strip ratio of 1.8:1
    • First 8+ years of mining requires no coal washing
    • Transferable 30-year mining license with a 40-year extension option
    • Environmental approval and mining licenses granted by the Mongolian government
    • Over 33,000 hectares of exploration licenses in surrounding sedimentary basins with potential for additional resources
    • Secured railway loading capacity through Mongolia’s Sukhbaatar Railroad station

    Ulaan Ovoo Coal Resource:

    Coal (Tonnes)
    Measured 174.5 Million
    Indicated 34.3 Million
    Total M&I 208.8 Million
    Inferred 35.9 Million

    Ulaan Ovoo resource estimate is from the NI 43-101 Behre Dolbear report prepared in 2007. Coal reserves estimate from the NI 43-101 report prepared by Wardrop Engineering in 2010. Detailed Resource/Grade Table

    Technical Reports:

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    Numerous factors could cause Prophecy’s actual results to differ materially from those expressed or implied in the forward looking statements, including the following risks and uncertainties, which are discussed in greater detail under the heading “Risk Factors” in Prophecy’s most recent Management Discussion and Analysis and Annual Information Form as filed on SEDAR and posted on Prophecy’s website: Prophecy’s history of net losses and lack of foreseeable cash flow; exploration, development and production risks, including risks related to the development of Prophecy’s Ulaan Ovoo coal property; Prophecy not having a history of profitable mineral production; the uncertainty of mineral resource and mineral reserve estimates; the capital and operating costs required to bring Prophecy’s projects into production and the resulting economic returns from its projects; foreign operations and political conditions, including the legal and political risks of operating in Mongolia, which is a developing jurisdiction; title to Prophecy’s mineral properties; environmental risks; the competitive nature of the mining business; lack of infrastructure; Prophecy’s reliance on key personnel; uninsured risks; commodity price fluctuations; reliance on contractors; Prophecy’s minority interest in Prophecy Platinum Ltd.; Prophecy’s need for substantial additional funding and the risk of not securing such funding on reasonable terms or at all; foreign exchange risks; anti-corruption legislation; recent global financial conditions; the payment of dividends; and conflicts of interest.

    These factors should be considered carefully, and readers should not place undue reliance on the Prophecy’s forward-looking statements. Prophecy believes that the expectations reflected in the forward-
    looking statements contained on this page and the documents incorporated by reference herein are reasonable, but no assurance can be given that these expectations will prove to be correct. In addition, although Prophecy has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Prophecy undertakes no obligation to release publicly any future revisions to forward-looking statements to reflect events or circumstances after the date when information on this page is published or to reflect the occurrence of unanticipated events, except as expressly required by law.