Gulfside Minerals Ltd. is focused on generating shareholder value through the exploration and development of coal licenses in Mongolia. The Company's strategy for growth is to explore prospective early-stage coal licenses within known coal-bearing regions and define coal resources of economic interest for development.
Mongolia hosts advanced coal projects with large reserves that have attracted the attention of some of the world's largest coal producers, vast untapped coal resources and several dozen producing coal mines. Most of the coal mined in Mongolia is used to generate heat and electricity. Recent infrastructure improvements have made Mongolia's coal resources more accessible for mining and export to China and other Asian economies. China is the world's largest consumer of coal at more than 30% of total demand. Approximately 70% of China's electricity is generated from coal. The Company believes that coal demand from China will continue to grow in the decades ahead, reflecting this populous nation's rapidly expanded economy and prosperity.
In 2009, Gulfside Minerals secured rights to three Mining Exploration Licenses comprising the Onjuul Coal Project in Tuv Aimag (Central Province), SW Mongolia. These licenses encompass the Black Hole Project and the Onjuul Project within the Choir-Nyalga Coal Basin. Rights to several adjoining licenses were secured by Letters of Intent in early 2010, providing further opportunities for resource expansion through drilling programs and other technical evaluations.