12th Jun 2008 09:00
For immediate release 12 June 2008
Polo Resources Limited ("Polo Resources" or the "Company")
Significant New license areas acquired by Polo in the South Gobi Coal Basin
Polo Resources Limited (AIM:PRL), has increased its exploration license areas in the prolific South Gobi Coal Basin, currently holding a total of 24 licenses in this area with a further 10 licenses under option. Should Polo exercise all these Options it will hold a total license area of 6,783 km2 a significant increase from the 570 km2 previously held. These license areas contain Permian and Carboniferous age sediments that host the thermal and coking coal deposits of the region such as the Tavan Tolgoi project and Baruun Naran.
Within Polo's holdings in the South Gobi are 11 known coal occurrences. The licenses include the southern and western boundaries of the Baruun Naran Project held by QGX that extends from the Tavan Tolgoi deposit and has in recent times defined more than 200Mt of thermal and coking coal and has a prefeasibility study completed showing excellent returns.
Seismic surveying has commenced at Polo's Naruun North License that will help to define the coal located in 8 holes during the 2006 campaign. The coal outcrops over 3 km and occurs in multilayered sequences with thicknesses from 2 to 12 metres. Naruun North lies 7.8 km north of the Coal mines of MAK and South Gobi Sands and has testing which has revealed coal of similar quality. The areas are ideally situated for the export of coal into China.
A total of 43 diamond drill holes have been completed on the Union Prospect. Drilling has defined a coal seam with an average thickness of 60 metres dipping gently to the west. The maximum true thickness of coal intersected was 146 metres. Coal has been intersected over more than 60% of the 2.82 km2 license area and is exposed in the small open cut. A review of the permits associated with this mining license is underway to evaluate the potential to exploit this discovery. SRK has been appointed to complete a resource calculation for the project.
Neil Herbert, Deputy Chairman of Polo, said:
"Polo is focusing on the South Gobi Coal Basin which produces high quality coal for export to China and thereby positioning the Company in respect of the anticipated significant growth in both coking and thermal coal production in this strategically important region."
Contacts:
|
Polo Resources Limited Neil Herbert, Deputy Chairman |
Tel: +27 11 269 4900 |
|
Canaccord Adams Mike Jones |
Tel +44 (0) 207 050 6500 |
|
Financial Dynamics Ben Brewerton Edward Westropp |
Tel: +44 (0) 20 7831 3113 |
About the Company
Polo is an emerging energy company focused on acquiring and developing advanced stage coal and uranium properties in Asia and Australia. For complete details on Polo Resources Limited, management encourages investors and interested parties to view its public documents filed on AIM Exchange at www.poloresources.com.
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