Mongolia has an abundance of coal deposits, making it the subject of significant exploration for coal bed mining, also known as coal seam gas (CSG). Despite this, the nation depends on two neighbours, Russia and China, for energy supplies, which means CSG development is quite valuable for the country’s energy independence.
With record gas prices prevalent through much of the northern hemisphere, Jade Gas Holdings (ASX: JGH) has acquired two highly prospective and sizable coal bed methane (CBM) permits from the Mineral Resources and Petroleum Authority of Mongolia (MRPAM), covering a total area of ~18,000 km² in the Shivee Gobi and Eastern Gobi basins.
The Company has negotiated minimal expenditure commitments on both locations over a three-year prospecting period. Initial study work over the coming months will be completed to assess its potential better, ahead of technical studies, including drilling capabilities, coal sampling and gas testing. The total expected expenditure for a three-year period for both projects is estimated at around US$270k.
Commenting on the new permits, Jade CEO, Chris Jamison said, “Securing two highly prospective coal bed methane agreements is a real coup for Jade and its shareholders,” and “The permits are an excellent addition to our flagship TTCBM Project (Tavantolgoi XXIII unconventional oil basin project), which allows us to expand our exploration and appraisal for natural gas from the coal seams that sit within the boundaries of these really extensive permits”.
The Company strategy is aimed to partially displace the use of imported gas and liquid products (diesel and petrol), reduce the use of higher carbon emission emitting fuels, and not only reduce air pollution for Mongolia, but reduce the nations reliance on imported electricity from its neighbouring countries – hence the reason why the Mongolian government mining regulators were eager to grant the two permits.
Currently, Mongolia only has access to coal and diesel-based energy, meaning Jade’s gas will become the country’s least environmentally harmful energy source.
Previously trading under the name High Grade Metals Limited, The Company primarily focused on exploration of cobalt, nickel and copper in Schellgaden, Austria.
High Grade Metals (HGM) was suspended from trading on 18 July 2019, but in October 2021, they renamed to Jade Gas Holdings (ASX: JGH) after its back door listing by acquisition, following a successful capital raise of $7.5m at $0.03 per share. Since then, however, JGH shares have more than doubled, with it sitting at $0.08 at the time of writing.
Trading Desk Assistant at Emerald Financial
Latest posts by Jack Cornips (see all)
- UNITH delivers eSocial Worker for public health services across 14 countries - December 5, 2023
- Novatti cashing out of Reckon investment, clears debt to simplify payments business - November 17, 2023
- Novatti seizes opportunity in Australia’s cashless transition as revenues rise while expenses drop - October 30, 2023
Leave a Comment
You must be logged in to post a comment.