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Ulaan Ovoo
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Prophecy’s 100% owned Ulaan Ovoo coal deposit is approximately 430 km by paved highway from the capital city of Mongolia, Ulaanbataar. It is also strategically located just 17 km from the Russian border and 120 km from both Mongolian and Russian rail links. The project contains 209 million tonnes of measured and indicated coal resources. A prefeasibility study of the initial mining area found the coal to be a high-quality, high-volatility sub bituminous rank (ASTM) thermal coal that is economically mineable with a 1.8:1 strip ratio. The average coal assay for the mining area is gross calorific value 5,040 kcal/kg with low ash at 11.3% and very low sulfur of 0.40% (all on the as-received basis). Characteristics of the deposit, including a coal thickness of at least 53 meters, a low strip ratio and no coal washing required for the first 8 years of operations, make for a low cost mining operation.
On November 11, 2010, the company received the mine permit from the Mongolian Ministry of Mineral Resources and Energy. Leighton Engineering started as the contract miner in July 2010 and began initial mining operations. Prophecy commissioned Ulaan Ovoo in December 2010. Mining has continued to this date. The northern part of the deposit area covers approximately 790 hectares. Prophecy holds the Ulaan Ovoo Mine area under two mining licenses: 1231A with an area of 213 hectares and license 5895X with an area of 254 hectares. The mining licenses are issued for a term of 30 years with a 40-year extension option.
Surrounding the Ulaan Ovoo deposit are other prospective coal-bearing basins similar in size to Ulaan Ovoo. Prophecy has obtained four transferable licenses covering these basins. Recently during June 2011, Prophecy acquired the rights to acquire 100% ownership of the 4,773-hectare Ilch Khujirt property (Ilch) located 17 km northeast of the Ulaan Ovoo coal mine. The Ilch property is contiguous to Prophecy’s existing 7,392 hectare Khujirt exploration license. Prophecy immediately started to evaluate the coal resource potential of the licenses. In 2011, Prophecy began exploratory drilling activities to better evaluate the coal resource potential of their licenses and the Ilch Khujirt property.
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Highlights:
- 208.8 million tonnes of measured & indicated coal resource (NI 43-101; 174 Mt of measured and 34 Mt of Indicated)
- 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
Next Steps:
- To sign further off-take agreements with local Russian and Mongolian power plants
- To secure year round opening of Zheltura border into Russia
- To secure rail access through Russia to ship coal to Asian markets
- To sign off-take agreements with internationally recognized partners
- Conduct studies to build an on-site power plant
Technical Reports:
- Dec 2010, 43-101 Prefeasibility Study Update (File size: 5.0mb)
- May 2009, 43-101 Prefeasibility Study (File size: 9.0mb)
Maps, Models, and Diagrams:
Interactive Map
Videos
Ulaan Ovoo Mine Opening Ceremony 
Ulaan Ovoo Operation Update 
Community Work -
News Release:
May 8, 2012 -
Prophecy Coal Provides Coal Sales Update from Ulaan Ovoo
Since 2010, the Company has invested over $30 million at Ulaan Ovoo, including road and bridge building, mining fleet, mining camp, pre-stripping, and other infrastructure and community improvement. Read more >>
May 4, 2011 -
Prophecy Acquires Prospective Claims Near Its Ulaan Ovoo Mine In Mongolia
March 23, 2011 -
Prophecy Provides Operation Update and Production Forecast at Ulaan Ovoo
January 5, 2011 - Prophecy Enters MOU for 1.2 Million Tonnes Per Year Coal Offtake With JUST Group
December 16, 2010 - Prophecy Files Prefeasibility Study for the Ulaan Ovoo Coal Mine in Mongolia
August 26, 2010 - Prophecy provides update on Ulaan Ovoo Mine preparation, Mongolia
May 11, 2010 - Prophecy Contracts Leighton For Q3 Coal Production At Ulaan Ovoo, Mongolia
March 18, 2010 - Preparations Underway for Mongolian Coal Production
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Mineral resources that are not mineral reserves do not have demonstrated economic viability. Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this website.
Qualified Person under NI 43-101
Christopher M. Kravits P.Geo., a consultant of the Company is the qualified persons responsible for the technical information on this website.
Cautionary Note Regarding Mineral Resources and Mineral Reserves
Readers should refer to the Company's current technical reports and other continuous disclosure documents filed by the Company available on Sedar at www.sedar.com for further information on the mineral resource estimates of the Company's projects, which are subject to the qualifications and notes set forth therein, as well as for additional information relating to the Company more generally. Mineral resources which are not mineral reserves, do not have demonstrated economic viability. Inferred mineral resources have insufficient confidence to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability suitable for public disclosure. Neither the Company nor readers can assume that all or any part of an inferred mineral resource will be upgraded to indicated or measured mineral resources. Most projects at the inferred mineral resource stage do not ever achieve successful commercial production. Each stage of a project is contingent on the positive results of the previous stage and that there is a significant risk that the results may not support or justify moving to the next stage.
Click here for the forward-looking statements and the cautionary note.
