According to a NI 43-101 compliant report compiled by Utah consultant Norwest Resources, the property has a resource estimate of 272 million tonnes measured and indicated as well as 232Mt inferred.

There are five seams that make up the estimate, all of which have been classified as lignite A for thermal coal use.

Two of the six exploration licenses were utilized to collect the drillhole data to quantify the reserves – 1132 of 13,093 hectares, or less than 10% of the total area.

Following the promising results and due to the lack of sufficient data to estimate resources on the entire project area, Lucky Strike said it would examine further exploration of the CN properties.

The resource estimates are primarily from the initial 2000 meters of drill data, which came from 11 total core and rotary holes that were part of a 2009 drill program Norwest supervised.

Core recovery for the sampled seams ranged between 94% and 100%.

“Borehole data indicates that the strata dip to the northeast at 7 to 10 degrees and the coal seams can be traced laterally across the drilled properties,” Lucky Strike said, noting the report concluded the geologic complexity is low type-C.

Norwest has recommended a two-phase exploration program for CN, the first consisting of detailed geologic mapping, infill and step-out drilling (approximately 8000m) to increase tonnage within the measured and indicated assurance categories.

Hydrologic and geotechnical testing are also planned, followed by an interim report.

In the second phase, additional drilling of approximately 5000m on the remaining area covered by all licenses will be performed to potentially extend the resource base.

Lucky Strike will have magnetic and surface geophysics surveys run on the property at that time.

The British Columbia-headquartered company first announced in July it would acquire its stake in six Mongolian exploration licenses and coal properties in a $US5.8 million deal via definitive agreements with five privately-held Mongolian companies.