Source: Xanadu Mines                        date: 08 September, 2011

Laboratory results indicate the existence of high quality coal at Xanadu Mines’ Nuurstei project. The raw sample came from its first diamond drill hole at the project.

At the site of exploration, the firm uncovered samples 290 meters thick with coal seams of up to 6 meters in apparent thickness. Tests showed low to medium volatile coal. Washability, coking and plastometric tests have not yet completed.

Coal quality analysis will continue over the next few months as part of a USD 1.5 million drilling program. Four diamond holes have been drilled, reaching 1,393 meters.

“The initial coal quality results from Nuurstei are very encouraging, with subsequent drilling confirming the discovery of a potentially significant new coking coal province in northern Mongolia within reasonable distance of the Erdenet rail network,” said Xanadu’s chairman Brian Thornton.

Nuurstei is the first project of the Xanadu and Noble JV strategic alliance in Mongolia targeting coking coal and iron ore opportunities. The project covers an area exceeding 3,000 hectares.