THE exploration licence for Eumeralla Resources’ Chuluun Khoroot Tungsten Project in northeast Mongolia has been extended for an additional three years. The Mineral Resources Authority of Mongolia (MRAM) has extended the licence to September 26, 2019 and has reduced the tenement area from 12,658 hectares to 2786 hectares.
Centreville LLC, a Mongolian domiciled subsidiary, holds the Ovoot licence in north-eastern Mongolian. The licence incorporates the historical Chuluun Khoroot tungsten mine which was active during the period from 1945-1955.
The Chuluun Khoroot tungsten deposit was discovered in 1944 and is in the south-eastern part of the licence area. Tungsten and subordinate molybdenum mineralisation are associated with a series of quartz veins within the Chuluun Khoroot granite and surrounding sedimentary rocks.
Approximately 23 quartz veins have been identified with the ‘main vein’ and number 18 vein having been the focus of past exploration. The main vein is approximately 500 metres long, strikes northwest-southeast and is essentially vertical. The vein has been explored to depths up to 60 metres and at surface appears to be 1-2 metres wide.
The number 18 vein is approximately 100 metres long, 0.14 metres wide and has a variable strike from northeast-southwest to north-south. This vein has been explored to a depth of 12 metres.
Chuluun Khoroot is about 20km north of the town of Dashbalbar, 850km northeast of Ulaanbaatar and 85km northwest of the Solowevsk to Choibalsan railway.
ASX-listed Eumeralla, which also has exploration interests in Myanmar, including the historic Mawchi tungsten mine, has executed a formal share sale agreement with the security holders of Ausmex Mining Ltd. Eumeralla will acquire all of the outstanding shares in Ausmex for consideration of 207 million Eumeralla shares to be issued to the Ausmex vendors.
Ausmex’s largest shareholder is C4 Shares Pty Ltd, which will be entitled to approximately 48.3% of the shares to be issued to the vendors. As a consequence of the proposed acquisition, if approved, C4 Shares is expected to hold approximately 25.6% of the listed merged entity.
An indicative timetable has set the settlement date of the transaction as being March 24, 2017 and the re-quotation date as April 7.