The Ulaan-Ovoo coal deposit is Jurassic in age and is typical of the Sharyn Gol type of coal deposit in Mongolia. The coal comprises a single seam in the north-western part of the syncline and splits to the southwest forming two thick coal sequences (seams) which are relatively thick and flat lying. These seams host thick groupings of coal plies separated by thick clastic layers derived from flood events and ash falls which occurred during the time of coal deposition. The primary source of the flood induced sediments was to the south and southwest, and the parting thicknesses increase in that direction. Although the overall geometry is typical of coal mining deposits, the seams are generally thicker than usually encountered, ranging from a total of 15 to over 85 metres in thickness, and averaging 45 metres throughout the deposit area.

The Ulaan-Ovoo coal deposit, which is part of the 520 m thick Sharyn Gol formation, has two main coal seams that contain five sub-units of coal.

Mod Coal Seam (formerly Coal Seam I): This seam is the lower of the two main coal sequences. It merges with the upper and thicker Gol Coal Seam in the north-eastern part of the area and splits to the southwest. It is well developed in the western part of the syncline. Its thickness ranges from 2.0 m to 7.5 m and thins in the south-western part of the deposit. The seam contains up to three partings with thicknesses of 0.56 m to 0.77 m. In the area where it is best developed, the Mo ........

The Ulaan Ovoo Property has the production capacity of 2 million tonnes per year and is a fully-permitted large coal field featuring a single, massive coal seam of 40 to 80 metre thickness outcropping at surface with a low strip ratio carrying minimal technical risk. Owner signed a lease agreement in October 2018. Lessee performs mining operations and cover all operation, capital costs incl. taxes. The recommended mining method is an open cut operation, using conventional truck-and-shovel mining equipment. With the low strip ratio, the overburden removal rate is not high enough to justify assessment of high capital cost lower operating cost methods including in-pit crushing and conveying, and trolley assist for trucks. As the seam dips at Ulaan Ovoo are typically around 20 degrees, it is likely in-pit spoil dumps would not be stable and hence waste will be hauled to an outside waste dump to the west of the pit. The coal will be hauled to the ROM crusher located to the east of the pit. The mine will advance in a series of pushbacks off the highwall. Below the alluvium, the overburden will be drilled and blasted in bench heights to suit the excavators. Successive benches will be mined, with overburden and coal hauled via temporary ramps on the highwall. In the lower benches, coal and parting will be selectively mined to a minimum thickness of 0.5 metres. Tracked dozers will assist with ripping and pushing thin seams and partings to the excavator, and with clean-up of coal r ........

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