Red Hill Energy (CVE:RH) announced today that their 100% owned Ulaan Ovoo coal project in Mongolia received a positive pre-feasibilty study.  The study shows at a coal price of $76US/tonne, an after tax and royalty NPV of $US250 million with a discount rate of 10%.

The study projected a mine life of 17 production years estracting a total of 108 million tonnes with a total cash cost of $56US/tonne. 

Ranjeet Sundher, president of Red Hill is quoted as saying:

The study is significantly more thorough than previous studies and clearly outlines the path to production, from equipment acquisition and infrastructure development to delivery of the coal on the export market.

Click here for the full press release ^[1].