Nuurstei provides Aspire with the opportunity to pursue a near-term production opportunity to take advantage of improving conditions in the coking coal market.
A conceptual mining study shows a competitive delivered cost for hard coking coal into northern Chinese markets based on trucking.
Nuurstei is seen as a starter project for Aspire while it progresses the 100% owned Ovoot Coking Coal Project, Mongolia’s second largest coking coal project.
During 2016, a maiden JORC resource at Nuurstei was estimated measuring 12.85 million tonnes.
The mining license application process is advanced and additional drilling and sampling is required to convert Inferred resources into Indicated resources and build mine life.
Balance sheet restructure
Aspire has closed its capital raising after receiving applications for 54.9 million shares at $0.02 and 54.9 million free attaching options exercisable at $0.025 within 12 months of grant to raise $1.1 million before costs.
When combined with the previously announced $2.6 million in debt and other obligations being converted to equity, a total of 186.6 million shares and 186.6 million options will be issued, increasing equity by $3.7 million.
Funding pre-development work
Aspire is currently investigating additional funding sources, which includes a coal presale facility to assist in funding pre-development work and a 2017 drilling and sampling program at Nuurstei.
The company is currently evaluating the opportunity to initially commence mining raw coal from Nuurstei for toll washing before delivery to customers in Northern China.