VANCOUVER, June 21 /PRNewswire-FirstCall/ -- Robert L. Card, President of Gulfside Minerals Ltd., (the "Company" or "GMG") is pleased to report that today the Company has signed a Letter of Intent with a private Mongolian company leading to the acquisition of the 'Monster' coal property located in SW Mongolia. The Monster property, so named because of the presence of massive coal seams up to 100 meters thick, is located about 430 kms southwest of the capital Ulaan Baatar and within 200 kms of the Chinese border. The property is 82 km to the railroad and 6 km from a 35KW electric power line.
The history of the property dates back to 1963 with the first surveys conducted under the direction of Russian geologists. More work was done in 1986-87 by the Russians when a large amount of coal was noted. In 2006, the present owner caused a number of holes to be drilled to test the coal bearing layers. The depth of the drill holes were between 74 m and 240 m. and intersected four coal seams with the total thickness of coal of between 41.5 m and 94.9 m. Additional holes show even thicker coal seams with the largest intersection of 129.3 meters. The potential reserves will be more fully integrated into the picture during a planned coal scoping study and a NI 43-101 reserve study report. The property is estimated to contain up to 550 million tonnes of coal in the Mongolian "C" category and a much larger potential reserve of 2.5 billion tonnes in the possible and probable category. The area of the 'C' category reserves is about 6.5 million square meters and 29 million square meters cover the possible/probable area of the deposit. Coal from this area sells for $20-$40 per tonne. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.
The Company will be conducting additional drilling over the summer to determine reserves for a qualifying NI 43-101 report.
The coal deposit has a strike-length in a southeasterly direction of 16-18 km and a width of 6-8 km. It occupies a large area of Erdenetsogt hollow and Gobi-Gashuun dry land, which covers most of the territory of Altanshiree Soum. The coal deposit is ideal for the planning of a very high capacity open pit mine with coal quality and production capacity suitable for shipping to China by truck and train in very large amounts. The location lends itself as the fuel source for a large power generating operation. Another consideration is for coal to liquids production such as diesel and gasoline and research into the "holy grail" of the coal industry which is the insitu gasification of coal with the resulting gas being used in numerous applications.
The Company has an agreement to acquire a 50 percent interest in a private company set up to hold the Lease with an option to acquire an additional 16% interest within one year for a total of 66%. A sliding scale royalty of 3-5% is payable on production. The Company will be the operator of the project. More details will be available after review of the transaction by the TSX Venture Exchange. Dr. Marc Bustin, PhD, P.Eng., is the Company's NI 43-101 qualified person on this project and has reviewed this news release.
Project generation
The Company is in the process of filing for additional leases with substantial previous exploration results which complement the presently owned Erdenet and Khentii projects.
We seek Safe Harbor.
On Behalf of the Board of Directors,
Gulfside Minerals Ltd.
"Robert L. Card"
Robert L. Card
President
Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning GMG's planned exploration program in Mongolia and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although GMG believes that its expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed under the heading "Risk Factors" and elsewhere in the corporation's periodic filings with Canadian securities regulators.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the accuracy or adequacy of this news release
CONTACT: Investor Contact, Robert L. Card, President, Gulfside Minerals Ltd., (604) 687-7828, 1-800-687-7828,
