DALAN COAL DEPOSIT
The Dalan mining license covering 271.94 ha area located in Dalanjargalan County, Dornogobi Province, approximately 285 km to the southeast of UlaanBaatar, Mongolia. The Dalan is a deposit with resources of 21 million tonnes of thermal coal with a nominal calorific value of 4,800 kcal/kg and an average stripping ratio of 2.15 BCM per tonne of coal. The Dalan property is continuation of Mongolyn Alt Group’s (MAK) currently operating Eldev coal mine which is connected by a 10 kV high voltage power line to Dalanjargalan County power network and by an improved dirt road to railway station #25 (OlonOvoo) of the Trans-Mongolian railway. On June 10, 2010, we entered into an agreement with Canadian investors to earn a 40% interest in a joint mining and development corporation set up to explore and develop a number of coal properties in Mongolia, including Dalan and Khotgor (947Ha) high quality metallurgical and thermal coal. Within the basin we hold "AlagTogoo" deposit northeast of the Dalan deposit and two other license areas where significant coal seams were encountered in drill boreholes.
Erdenetsogt coal project is located 430km to the SE of Ulaanbaatar and 85km to the NNE of the provincial Center Sainshand. The Chinese border is 230 km by rail from Sainshand to Zamiin-Uud border crossing. Drilling intercepted multiple coal seams up to 68m in thickness.
2.5 billion tonnes of thermal coal was evaluated by "Norwest" international consulting company. Complex geometry, grade variability and variable seam thicknesses:
Coal resource extends to 250m depth based on current drilling
Overburden thicknesses range from 6m to 39m
Low mining strip ratio 1: 0.17
Exploration data to date defines Thermal Coal across a 35.1 km2 area (7.8km x 4.5km)
Coal parameters in average: Q= 3200-4500KCal, Ash = 15.6%, and Moisture content = 25.4%
For more details visit www.erdenetsogt.com
NALAIKH COAL MINE
The deposit (199 ha) is located 40 km to the east of Ulaanbaatar and has high quality 5870-7030 KCal thermal coal. Underground mining had been operated since 1922. The mine was major energy resource supplier to the Ulaanbaatar, capital city of Mongolia. After collapse of soviet system its operation was shut down. The company holds possession of the northern portion of the deposit and is planning to bring the mine into operation. The estimated resource within the block is 23.4Mt.
KHOTGOR COAL PROJECT
Khotgor(947Ha) coal deposit lies approximately 1500km to the west of Ulaanbaatar, 80 km to SW of the provincial center Ulaangom city, and 55km to NE of Bokhmoron County of Uvs Province. It has high quality thermal and metallurgical coal (+5500KCal). Measured reserve of the mining license area is 540Mt. Aggressive exploration programme commenced to identify further coal resources on the neighboring exploration license area targeting at 800 to 1Bt of high quality coal. We have entered into agreement with MMC of Canada to earn 40% interest of the deposit.
KHONGOR COAL PROJECT
The project is located in the territory of Khongor County approximately 6 km to the northeast of the provincial capital Dalanzadgad and 24 km to the west of the well known “Tavan Tolgoi” metallurgical coal mine. In 2011 the Company entered into an agreement with "Jin Gobi Mining" LLC of China to conduct complete geological exploration in the license area.
NAVTGAR UUL COKING COAL PROJECT
The Navtgar uul coal property is located in Bayan-Ovoo, Nomgon, and Khanhongor Counties of UmnuGovi Province of the Southern Gobi Basin of the Southern Mongolia, about 550 kilometers to the southwest of Ulaanbaatar. The property (105,325.6 ha) is located approximately 50 km to the south-southwest of Tavan Tolgoi coking coal deposit, the largest coal deposit in Asia, and west of the recent discovery by Hunny Ltd at their Tsant Uul property. The Navtgar Uul property is also located approximately 80 km to the west-northwest of the Oyu Tolgoi copper-gold deposit operated by Ivanhoe Mines. We have been conducting reconnaissance drilling work in 4 target areas since 2009 and significant coal seams were encountered in boreholes.
Eroolt project is located 640km to the SE of Ulaanbaatar, 90km to the east of provincial center Baruun Urt and 25km from Asgat County, Sukhbaatar Province.The properties lie approximately180 km northwest of the port at the border with China. Eroolt project includes a group of licenses including Tsagaan Zalaat (1098.09 ha), Eroolt (15318.31ha), and Nuurst Hudag(4123Ha). 188 drill holes totalling 31596.8 lengthwise m were performed there. The thickness of the coal seams ranges from 20 to 60 meters and the depth ranges from 10 to 60 m from the surface. The dip angle of the coal seam is 0 to 5 degree and the coal seam has stable dispersal. Opencast mining method is suitable for the deposit. The test results are as follows: Total moisture (Wp) - 22.2%, Inherent moisture (Wa) - 9.12%, Ash (Aa) – 12.98%, Volatile matter (Vr) - 41.36%, Sulfur (Sc) – 0.71%, low Caloric value (Qar) – 2180 ~5115 kcal/kg to the average of 4023 kcal/kg, high Caloric value (Qgr) – 3512~6886 kcal/kg to the average of 5410 kcal/kg. Caloric value of this area is relatively low and the average of low Caloric value (Qar) is about 4023 kcal/kg. Estimated coal reserve is 1,4 billion tonnes.]]>
BASE METAL PROJECTS
BASE METAL PROJECTS
ZOST MOLIBDENIUM AND KHAVTSGAIT ZINC, LED PROJECTS
The Company has been cooperating with “Yu Jin Investment” Co.Pte.Ltd of Singapore to identify Mo and Zn, Pb mineralization in Western and Eastern part of Mongolia. The drilling program has been completed on western license block and mining license is being granted.
Zost molybdenum Project area is located 630 km to the northwest of Ulaanbaatar in the territory of Tosontsengel County, Zavkhan Province. The Project area consists of two areas named Zost and Uvur Zost. The probable reserve of the Project is over 200,000 tonnes. Exploration work has been completed within Zost area. Our company is working on this Porject in cooperation Yu Jin Investment Co. Pte.Ltd of Singapore. In cooperation with this company we have being implementing several large projects such as Khavtsgait zinc-lead Project in the Munkhhaan County, Khentii Province, copper-iron Project in the territory of Naranbulag County, Uvs Province and copper Project in the territory of Manlai County, Umnugobi Province etc.
TSAGAAN CHULUUT MOLIBDENIUM DEPOSIT
The license area is located in the territory of Umnudelger and Ulziyt Counties of Khentiy Province, 327km to east of Ulaanbaatar. The deposit initially was discovered during regional geological mapping work conducted by International geological expedition in 1987-1989. The main stockwork zone and several distinct zones named North, East, and Greisen, were revealed as a result of the geological-geochemical work. We have completed drilling work at Greisen area to evaluate its economic potential. Mining license has been granted to the company in 2011. The Greisen zone measured Mo reserve is 32.7thousand tone of Mo in 0.044 cutoff grade 77.6Mt ore. Detailed exploration work will be extended another 1500m to west to increase the reserve by 60,000 to 80,000 tonnes of ore bringing the total reserve up to 150,000 tonnes of molybdenum ore. The deposit consists of economic mineral association Mo-Re-Li.
The Shokhoit polymetal project is in the territory of the administrative unit of Sukhbaatar County and 32km to northeast of the provincial capital Baruun-Urt.
The Shokhoit occurrence was identified by Soviet-Mongolian team in mid 1980’s. Our Company has been cooperating with “Non Ferrous” Co.,Ltd Chinese based company to expand its economic potential.
BARJIN GOLD PROJECT
Barjin Au property is located in Tuv Province 180km to west of Ulaanbaatar in the territory of Zaamar County, Tuv Province. Exploration operation at Barjin property included mapping, geophysics, trenching and drilling works, and was completed in 2009 and mining license was granted accordingly. It has high grade 4-12g/t gold bearing mesothermal quartz veins containing 6t gold. A pit designing is undertaken and first production will be extracted in 2013.
"GOLDEN HILL" Au project
AltanUul Resource Limited holds 4 licenses; including 1 mining and 3 exploration licenses XV-003615, XV-007305, XV-014925 and MV-014917 issued by MRAM.
• XV-003615 (YamaanUsniKhyar) base metal exploration license, 24,643.06 hectares and a validity date up to 16th Aug 2013.
• XV-007305 (Shand-1) base metal exploration license with 8,010.74 ha area and validity until 21st Apr 2013.
• XV-014925 (Elbeg) coal exploration license with 87198.99 ha area and validity until 2nd Jun 2015.
• 3614X exploration license was renewed to mining license MV-014917 (Toromkhon) in May 2009 with 6,470.02 ha area and validity until 22nd May 2039
The following types of mineralization have been identified on the properties:
• Volcanogenic Massive Sulphide (VMS). polymetallic base metal and gold mineralization,
• “Toromkhon” style gold mineralisation associated with pervasive jasperoid host rock, silicification, sericitisation and low level pyritisation,
• Alluvial gold mineralization, and
• Shear hosted gold veining.
Nine mineralized areas of gold, copper, and base metal were deleanated. The measured reserve of the Toromkhon licensed area is 11.4 tonnes of gold with average 0.7 g/t grade.
RARE EARTH METALS PROJECT
The Musgia Khudag area is considered to be largest REE resource of Mongolia and located in south Gobi region. The deposit was discovered by Russian expedition in 1983. The Russian team reported that its resource is over 1Mt of RRO. The deposit is located 500km to the SW of Ulaanbaatar and 32km to the SW of Mandal Ovoo County. We have been cooperating with Remet LLC of Mongolia in performing drilling works since 2008 at some target areas. For many years this area has been considered as an attractive subject for scientists and researchers. A lot of thematic works and books were issued by Japanese, Russian, American, and Mongolian scientists. One of them USGS evaluated its resource as 5,9 Mt RRO. As results of 2007-2009 exploration work we have determined the origin, complexity of the geological setting and exploration drilling grid density of the deposit, and the indicated reserve of 14.4 million tonnes of rare earth element ore or 194.4 thousand tonnes of B category rare earth oxides and probable resources of 1.2 million tonnes of ore or 37,300 tonnes of C category oxides in accordance with mineral resources estimation method of Mongolia. Complex geological exploration works are being continued to upgrade the reserve of the deposit.
The Shar Khad (160 ha) property is located approximately 470 km to SE of Ulaanbaatar and 130km to the NW of provincial center Baruun-Urt, and 26km to the SW of Tumentsogt County.The major fluorite processing plant Bor –Ondor is located approximately 300km away from the property. A preliminary resource was evaluated on 8 veins as 1.2Mt with average grade of 44.8%-55.6% CaF2. In cooperation with "Chengdo" company of China we have commenced extraction in 2012.