METALLURGICAL test work has been carried out on samples from Haranga Resources Selenge Iron Ore Project. The company expected to receive initial results from this work by the end of August.
Bulk samples were delivered to the ALS Technical Centre in Wangara, Western Australia, by the end of the second quarter. The first phase test work at laboratory scale was undertaken as per the scope of work in accordance with an optimized flowsheet recommended by an independent expert hired by Haranga.
A program of additional drilling with a particular emphasis on high grade has been approved by the Mineral Resources Authority of Mongolia and the General Agency for Specialized Inspection. The company has been working on the environmental rehabilitation work plan for the exploration season to be approved by the local government prior to commencement of drilling activities.
The first target of this campaign is associated with the Bayantsogt magnetite skarn hill and lies within the structural corridor that contains the major iron ore deposits in the region. This target is in the licence area where the JORC-compliant resources are delineated.
Target two is an outcrop that extends to 700 metres at the ground surface and suggests a significant mineralized area. This target is within two exploration licence areas at Selenge. Target three is another potential high grade target.
There are currently 254.4 million tonnes of overall resources at Selenge at a grade of 17.2% iron. This comprises 126.4 million measured tonnes @ 17.6% iron, 127.4 million indicated tonnes @ 16.8% iron and 550,000 inferred tonnes @ 16.7% iron. These resources are spread over the Dund Bulag, Bayantsogt and Undur Ukhaa deposits.
Haranga believes recent amendments to the Minerals Law in Mongolia have greatly improved the country’s mining environment. The key relevant changes are:
Restoration of issuance of new mineral exploration licences. The law banning the issue of new licences enacted on December 1, 2012, has been nullified by this amendment.
The existing mineral exploration licence can be extended by an additional three years from its ninth year until the 12th year.
A new classification of a mineral resource and reserve shall be approved which should introduce internationally accepted guidance such as a JORC code.
According to the implementing law to the new amended law, pre-mining agreements made under the previously existing Minerals Law shall remain valid under the contract terms.
The period of eligibility to submit a feasibility study report has been prolonged to one year from the date granting a mining licence.