ULAANBAATAR, MONGOLIA--(Marketwire - Jul 26, 2012) - Sharyn Gol JSC (MSE: SHG) ("Sharyn Gol") is pleased to announce that the Ministry of Nature, Environment and Tourism has accepted its Environmental Impact Assessment Report for the planned new open pit mine at the Shaazgait thermal coal deposit ("Shaazgait"). Following the recent approval of its Feasibility Study by the Mineral Resources Authority of Mongolia, Sharyn Gol has now received all government approvals necessary to launch operations at Shaazgait.
The new opencast mine will enable Sharyn Gol to retain its role as a supplier of low ash, low sulfur, and high calorific value product to the local market. Additionally, the Company is well positioned to utilize its existing infrastructure to expand into both regional and international thermal coal markets.
Recent coal washability test work, performed by the internationally accredited Stewart Laboratory in Ulaanbaatar, indicated that a product with 6500 kcal/kg heat value, less than 10% ash and 0.5% sulphur (all air dried basis) can be produced with high plant yields. These results are consistent with Sharyn Gol being able to produce a premium export quality thermal coal.
Consequently, Sharyn Gol's management is reviewing strategic options for washing and exporting coal to maximize potential revenue streams in coming years. Sharyn Gol is in a strong financial position, with a USD equivalent cash balance of $10m and no debt.
Sharyn Gol JSC is also pleased to announce the receipt of 2011 IFRS-compliant, annual financial statements, audited by Ernst & Young. The statements are available on Sharyn Gol's website www.sharyngol.com
Chairman Batkhuu Batmunkh added, "We are pleased that the development of the new mining area at Shaazgait remains on schedule, and are excited by the prospect of realizing our vision of launching modern commercial operations before the year-end."