General Mining Corporation has signed a contract with a drilling contractor to target potash at its wholly-owned Uvs Basin Project in Mongolia. The drilling contractor, ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH, is a German-based group of international experts in potash geology and mining.
Three to five holes will be drilled to a depth of 1000 metres at identified targets with 2D seismic to possibly follow up on drilling.
The project is near the Russian border in northwest Mongolia and is near a planned railway to be completed by 2015. The project comprises five granted exploration permits covering more than 2000sqkm within the basin considered prospective for bedded and domal (salt diaper) potash deposits as well as for lithium and potassium brines.
Previous drilling in the northern periphery of the basin in the 1950–60s intersected shallow potash mineralization in up to 600 metre Devonian evaporates, confirming the prospectivity for potash deposits.
General Mining has obtained all necessary approvals to begin the drill campaign sometime between July and August when a suitable drill rig becomes available to the contractor.
Potash is an essential commodity for agriculture and, according to General Mining, China is a major importer of potash. General Mining has a strategic alliance with Galaxy Resources at the lithium project in Mongolia.