MRPAM discloses prospective exploration projects www.gogo.mn
Mineral Resources and Petroleum Agency of Mongolia (MRPAM) presented 13 prospective projects in the mining industry. One-third of the projects consist of major gold deposits and the others include projects on tungsten-molybdenum, copper, rare-earth elements, lithium and uranium.
One of the deposits is a lithium deposit of Khukh Del. Alkali Metal Mongolia LLC has been granted the special permission to operate in the surveyed part of the deposit. However, the company is yet to start operations at present. Located in the Ulziit soum of Dundgobi aimag, the deposit has an estimated resource of 644.3 tons of ore with average grade of 0.153 percent lithium (992.2 thousand tons). Lithium is considered the lightest metal and is highly reactive. Therefore, it is mainly used for smartphone and electronic instrument batteries.
Along with the lithium deposit, a project on rare-earth elements is being implemented in Zavkhan soum, Uvs aimag. Geo-Info LLC, a national geological consulting firm, holds the special permission of the deposit, which reserves zircon and other rare-earth elements. The MRPAM informed that a report is being prepared on the exploration of the licensed area.
Another prospective project is the Uranium deposit in Ulaanbadrakh soum, Dornogobi aimag. Areva Mongol LLC holds the operating license of the deposit and is facing local resistance; thus, delaying the project significantly.
In addition, investments projects on copper and gold deposits in Kharmagtai has been increasing continuously. Xanadu Mines, an ASX-listed company, disclosed the drilling report near the end of 2017 and assessed “satisfactory”.
The list continued with two deposits in Uvs and Gobi-Altai aimags, where geological and exploration surveys were least conducted. Mongolian Resource Corporation owns the special permission to operate in the molybdenum and tungsten deposits.
Furthermore, Ivanhoe Mines Mongolia LLC has conducted an exploration between 2004-2009, which was then bought by Kincora Copper Ltd in 2012. The exploration of Bronze Fox Project has identified ore samples containing 0.5-1.5 percent copper. MRPAM also informed that a significant amount of gold can be extracted from the deposit. Presently, 1.5 grams of gold were found per ton of soil at depths of 1200 meters.
The main challenges for these projects have become the social licensing and local resistances. If these problems are resolved, the projects will attract guaranteed investments.
B.Bayartogtokh, B.Tugsbilig
Published Date:2018-01-18