Aspire Mining Limited (ASX:AKM) Ovoot Coking Coal Highly Attractive To Global

Perth, Aug 22, 2011 AEST (ABN Newswire) - Mongolian focused Aspire Mining Limited (ASX:AKM) (PINK:ASPXF) is pleased to advise that leading coal market consultants Wood Mackenzie, confirmed coking coal from Aspire's Ovoot Project had highly attractive properties and would easily meet the global seaborne market requirements.

In a marketing report prepared by Wood Mackenzie, the international consultancy said Ovoot coal could be described as 'A strongly caking, hard coking coal with superior blend carrying capacity,' and that hard coking coal would be an appropriate price benchmark.

Aspire wholly-owns the Ovoot Coking Coal Project, located in northern Mongolia. Ovoot has a 330.7 million tonne JORC Compliant Resource with high washing yields of 80% and an 8% ash content, based on recent wash analysis.

The Wood Mackenzie report stated that, based on available quality data, Ovoot coking coal was in an ideal range for mid volatile hard coking coal and fat coal classifications.

The consultancy also confirmed that the Ovoot coking coal presented as a value add blend coal - able to be blended with cheaper inert coals due its very high vitrinite content and good fluidity.

Aspire Managing Director David Paull said: "The Wood Mackenzie Report confirms our view that Ovoot is a quality coking coal by any measure. Confirmation that hard coking coal prices are an appropriate benchmark for Ovoot coking coal provides us with confidence to progress a prefeasibility study into the larger scale development of the Project."

"Potential markets for our coal include all of the large high growth markets of China, India and Brazil as well as the established markets of Japan, South Korea, Taiwan, Russia and Europe," Mr Paull said.

Ovoot Development Plans

Aspire commissioned Wood Mackenzie to prepare a marketing strategy for the Ovoot Coking Coal Project covering both the direct ship raw ore (10% ash) and the washed coal (8% ash).

Wood Mackenzie has significant experience in assessing and positioning new coking coal supply sources. Its marketing strategy reviewed supply and demand fundamentals of the seaborne coking coal market as well as markets in China. Rail capacities in Mongolia and China were considered as were rail and port capacities through Russia.

Aspire is considering development of the Ovoot project in two stages. The first (Stage 1) is a small scale development based on a 0.5 to 1 million tonne per annum starter open pit, providing direct ship ore which will be trucked 550 kilometres to the nearest rail siding at Erdenet, while work continues on developing a rail connection from the Mine to Erdenet.

Given high yields of 80% and a 15 million tonne per annum indicative open pit run of mine (ROM), Stage 2 production of as much as 12 million tonnes per annum of coking coal is possible with a rail connection to Erdenet and the Trans Mongolian Railway.

Wood Mackenzie Global Coal Outlook

Wood Mackenzie forecasts a strong market for good quality coking coals over the medium to long term driven by large demand increases from rapidly expanding markets such as India and Brazil.

It says coking coal prices have rallied beyond historic levels and high premiums above thermal coal are forecast to continue.

Wood Mackenzie believes that Chinese coking coal imports will grow as their reserves deplete and costs of domestic supply increase, and that growth in the use of PCI coals puts added emphasis on coke and coking coal quality.

It adds that China's steel industry - by far the biggest global coking coal consumer - is shifting towards larger, more efficient blast furnaces that require higher quality coking coals.

About Wood Mackenzie

Wood Mackenzie is the most comprehensive source of knowledge about the world's energy and metals industries. They analyse and advise on every stage along the value chain - from discovery to delivery, and beyond - to provide clients with the commercial insight that makes them stronger.

With more than 600 professionals in over 20 offices worldwide, Wood Mackenzie analyses the assets, markets and companies operating upstream and downstream; in oil, gas, coal, carbon, metals and power generation.

For more information visit: http://www.woodmac.com

Contact

David Paull Managing Director Aspire Mining Limited Tel: +61-8-9381-1995 Email: info@aspiremininglimited.com http://www.aspiremininglimited.com