THE eyebrow-raiser on Friday was the debut of Hunnu Coal (HUN), whose 20c shares shot to 41c on debut, then settled to close at 33.5c. Who would have thought that coal exploration in Mongolia could have got investor pulses racing so quickly?
This has concentrated minds at the so far unlisted Xanadu Mines, which has some advanced coal projects in Mongolia. The Sydney company had been planning to float in Hong Kong, but that exchange has yet to bed down its new resource company rules, so it looks as if Xanadu might strike on the ASX while the iron’s hot.
Friday also saw the settlement by Windy Knob Resources (WKR) on its Ovoot coal project in Mongolia. Sadly for those who had become attached to probably the most colourful company name on the ASX, WKR will trade as Aspire Mining (AKM) from tomorrow.
David McSweeney, the man who built iron ore success story Gindalbie Metals (GBG), is heading the new board taking over the hitherto becalmed junior.
He admits that, five years ago, he would not have been able to sleep for worrying about the logistics of a deposit 200km from the Trans-Siberian railway in Russia and 400km from the north-south rail artery through Mongolia that runs to the Chinese border.
Ovoot has hard coking coal and, if it proves to be big enough, McSweeney believes it could justify its own rail connection. Early days, of course; the vendors have drilled only eight holes, of which four hit coal.
But McSweeney is not fazed by that either. He remembers that the old Western Mining drilled only two holes at what became Gindalbie’s prize project in WA and estimating it contained 2.5 million tonnes of iron ore. In fact, there was 2.5 billion tonnes under the ground.
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