Shares in Xanadu Mines Ltd (ASX:XAM) surged 38 per cent yesterday, after the recently listed company reported coal discoveries in northern Mongolia.
The explorer described the drilling results as very encouraging, revealing a wide intersection of coal 70 metres deep.
Xanadu Mines and Hong Kong-based Noble Group have formed a 50:50 joint venture to target coking coal and iron ore opportunities.
Shares in fellow Mongolian coal miner’s also rose yesterday, Hunnu Coal Ltd (ASX:HUN) adding 3.2 per cent and Aspire Mining Ltd (ASX:AKM) gaining 3.88 per cent.
In the six months to the 31 December 2010, Xanadu Mines reported a net loss of $1.4 million.
