TMK hits thickest Mongolia coal to date… and there’s more to come

TMK Energy’s Snow Leopard-03R well has intersected the thickest intercept of coal to date from its current drill program at the project in Mongolia’s South Gobi Basin.

The well intersected a net coal thickness of about 80m to date from a depth of 455m, which represents the lower coal seam at this location.

Notably, the coal seam presents as a single, high quality, clean and homogenous coal seam/unit while preliminary results from desorption samples indicate the full seam contains high gas content.

There might be more coal to come for TMK Energy (ASX:TMK) as drilling is continuing ahead with SL-03R to be geophysically logged and permeability tested once the lower coal seam is fully intersected.

SL-03R, which was drilled to test the lower seam adjacent to where the upper seam was intersected in SL-03, also intersected 60m of net coal in the upper seam – consistent with the result in SL-03.

Meanwhile, the SL-05 well has intersected about 37m of net coal in the upper seam from a depth of about 155m and is currently drilling ahead to test the lower seam, which is interpreted to exist at this location.

Coal core from the upper seam has been sampled with preliminary results indicating that the shallow coal intersected has low to moderate gas contents, with gas contents increasing with depth.

Coal seam gas resource assessment

Once drilling of both wells is completed – marking the end of the 2022 drill program – TMK will integrate the results from all wells into the geological model.

This will allow the company to start its maiden Contingent Resource over the 24km2 that represents the central Narrin Sukhait area.

Here’s where it gets a little mind-boggling.

While the prospectivity of this central Narrin Sukhait area looks intriguing based on the drill results to date, it represents just a little more than 1% of the total prospective area covered by the Gurvantes XXXV project.

This makes it a neat initial step in assessing the enormous potential coal seam gas resources in the area.

Separately, the company has also moved to fast-track the planning and design process for the pilot well program that it seeks to start before the end of this year.

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This article was developed in collaboration with TMK Energy (ASX:TMK), a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.