In total Elixir holds 7 million acres in a production sharing contract with the government, agreed on late last year after lengthy delays. 

 

The ministry of environment and tourism approved the company's Detailed Environmental Impact Assessment, the final approval needed to begin the planned 2D seismic program, with local Micro Seismic hired for acquisition of 100 kilometres to 300km of data to further define coal seams Elixir has previously identified. 

 

The program begins three weeks after Mongolia's summer Naadam, the nation's traditional games festival, which begins today and runs until Monday. 

 

Elixir is still tendering for a driller with the process now at the formal contractor selection stage. 

 

Elixir suggests it will hire a contractor soon to execute a contract within a few more weeks, with drilling to begin in September. 

 

"We are now preparing for our imminent seismic and drilling programs which by the end of the year should have provided data in a success case to allow us to start to prove up contingent resources in the PSC," managing director Neil Young said. 

 

Elixir is up over 15% today trading at 4.5c.