Draig Resources Limited (ASX: DRG) (“Draig”, or the “Company”) is pleased to announce it has identified numerous Jurassic coal bearing drill targets, following a geophysical survey of two of its coal licences in the Ovorhangay province in Mongolia.

Draig said the targets identified over the Teeg (13879x) and Nariin Teeg (13581x) licences were relatively shallow and, at Teeg, could potentially include two laterally continuous synclinal features.

The geophysical field work was conducted by Nordic Geological Solutions LLC (“NGS”), Dash Meg Engineering (“DME”) for the purpose of defining exploration targets for drilling in early 2012.

The survey comprised 32 kilometres of geophysical (resistivity) survey work. A total of 12 lines of geophysical survey work were carried out on the Teeg licence and 3 lines on the Nariin Teeg licence at depths of up to 260 metres.

NGS has recommended Draig undertake a two‐phase drill program. Phase one would include 10 drill holes with a combined depth of approximately 2,200 metres to obtain samples for coal quality testing. Phase 2 will endeavour to increase the resource size, based on
information from Phase 1, plus previous exploration work.

Draig Managing Director Mark Earley said: “We are delighted with the results from the geophysical survey, particularly the shallow nature of the potential coal occurrences. Although further exploration work is required, we believe that based on the findings of the interpretation, potential exists to define a significant coal resource at Teeg.

“We have now identified a series of drill targets we think are very worthwhile pursuing and which will potentially contribute to us being able to define a JORC resource by the second quarter of this year.

“We need to immediately progress with exploration and we are in detailed discussions with a number of parties to continue our 2012 exploration program,” Mr Earley said.

The Teeg and Nariin Teeg licences are located in the Ongi River coal basin within the Ovorhangay province. Coal seams in the Ongi River Basin are hosted in the Upper Permain, Lower‐Middle Jurassic and Lower Cretaceous sedimentary sequences.

Drilling on Teeg undertaken by Draig in June 2011 intersected a massive 60m coal seam characterised by vitrinite‐rich massive hard black coal in the lower part of the seam. A separate 40m of thick black coal seam was intersected from a depth of 89m, of which 30m
was logged as consistently hard coal. Licence Location – Ovorhangay Province, Mongolia