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View Resources unleashes near surface coal intercepts at Uzgen Project

Published: 14:10 03 Oct 2012 AEST

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View Resources (ASX: VRE) is continuing its aggressive confirmatory drilling program at its Uzgen Basin Coal Project in Central Kyrgyzstan, where it continues to intersect hard black bituminous coal.

The Uzgen Basin Projects have an exploration target of 501 to 700 million tonnes of coal with coking coal potential.

View Resources has completed four further diamond core drillholes at the Tuyuk-Kargasha and Min Teke Prospects, intersecting two major seams of 1.94 metres and 1.06 metres at Tuyuk-Kargasha, with a total of 14 coal intersections of greater than 0.3 metres.

View Resources completed three diamond core drillholes at the Min Teke Prospect, with coal successfully intersected within 25 metres of surface in all of the holes.

Drilling intersected shallow coal seams of 2.93 metres, 0.84 metres, 1.89 metres and 1.17 metres in one hole, 2.93 metres in a second hole and 1.3 metres in a third hole.

Drill data and initial analytical work correlates well with historical drilling.

View Resources is on track to drill around 5,000 metres at the Uzgen Basin Projects this year, with first coal quality analyses anticipated shortly.


Small scale mining

The company has also begun small scale mining at the Min Teke Prospect.

Under the terms of the Development/Mining Licence, View Resources must mine 5,000 tonnes of coal a year to be sold into the domestic market.

The company anticipates generating a small cash flow from these activities which will further fund its exploration programs.


Kyrgyzstan coal acquisitions

View only recently added the Tuyuk-Kargasha, Kokkia and Min-Teke assets to its coal portfolio after agreeing to acquire 80% of the issued shares of Kokkia Coal.

Kyrgyzstan is a stable democratic country in Central Asia, historically known for its natural resources and ideally placed to supply its closest neighbour, China.

The Uzgen Basin coking coal projects are within 75 kilometres of existing railway (Kok Jangak) and close proximity to the proposed Trans-Asia Railway, which will allow direct access to China via rail.

There are several options for the sale of coking coal, including China and markets in Kazakhstan, Uzbekistan, Tajikistan.

The three tenements combined have an exploration target of 501 to 700 million tonnes of coal based on historical exploration.

The 8,000 hectare Tuyuk-Kargasha project is potentially a large tonnage coking coal project and has undergone substantial historical drilling.

A semi-industrial scale plant has been built on site to test coking properties of coal.

The 1,576 hectare Kokkia project is potentially a large tonnage coking coal project with substantial coal outcropping at surface.

The 187 hectare Min Teke project consists of a developmentmining licence covering outcropping thermal coal.


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