Mongolia Web News, Ulaanbaatar. QGX (TSX: QGX) of Canada has announced the results of their analysis of the yield of coal expected from the Baruun Naran site in Mongolia.

Specifics released in the report include finding above average overall washing yield of 64.7 percent. The coking-to-thermal coal ratio is 53 to 47 percent. Additionally, just five seams contain two-thirds of the initial yield of possibly 100 million metric tons of washed coal.

The analysis indicated that three washed coal products are capable of being produced at Baruun Naran: (1) a high-quality, 7-9.5 percent ash, semi-soft to semi-hard coking coal, (2) a low-to-mid ash 12-16 percent, secondary thermal coal, and (3) a high-ash (16-25 percent, tertiary thermal coal. 

Paul Zweng, President and Chief Executive Officer of QGX Ltd., commented,  "We are pleased that these much anticipated coal-quality results have exceeded our expectations. The 65% overall yield and the 53-47 split of coking coal to thermal coal are highly favorable and critical to the success of this project. In the past, we internally used a washing yield of 55% and a coking-to-thermal coal mix of 25-75 to estimate the financial parameters for the coal project. These assumptions were based on preliminary coal quality work conducted in 2005 using a "whole-seam" analytical approach.”

Continues Zweng, “ The new approach we adopted in 2006 with A&B Mylec and McElroy Bryan Geological Services is based on a more sophisticated "ply-by-ply" (or sub-seam) analysis. The difference couldn't be more pronounced-now for the first time we have data suggesting that there is potentially twice as much coking coal as we first thought.”

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