Exploration, Resource Delineation, and Coal Mine Development Omnogovi Aimag, Mongolia

Situation: Norwest assessed the potential of coal occurrences for a Canadian exploration and mining company holding mineral exploration licenses in the South Gobidesert of Mongolia.  Norwest’s efforts were focused on the evaluation of licenses to determine the feasibility of developing the coal resources within the license areas for export to the resources to support the Chinese thermal and metallurgical coal markets.

Solution: Norwest mobilized to the South Gobi desert to conduct an initial site review.  A multi-faceted exploration plan was developed which consisted of field reconnaissance, photo geologic and satellite imagery, exploratory trenching, surface geophysics, and exploratory drilling.

Result: Norwest located and defined significant coal deposits of high quality thermal coal with potential for metallurgical applications. Continued exploration has increased the reportable resource base to nearly 150 million tonnes as of July, 2007. Geotechnical and hydrologic studies were conducted to support the development of a prefeasibility mining study. The project is on track for initial mine production in 2008.